The Hindu Business Line : CII summit stresses corporate governance

India has larger market capitalisation than Singapore and a little less than Hong Kong. Hence, corporate governance is important if India needs to improve its share in Asia, said Mr Ravi Narain, Managing Director, National Stock Exchange Ltd, at the CII Summit on Corporate Governance.

India stands third in Asia in terms of good corporate governance, said Mr Rajnikant Patel, Managing Director and CEO, Bombay Stock Exchange Ltd.

The SEBI chief, Mr M. Damodaran, said, over a videoconference, that the regulatory framework for corporate governance in India is already in place.

It is the starting point to move away from the arithmetic of board composition and take corporate governance to the level of compliance and bring transparency.

Post-issue of the revised version of Clause 49 by SEBI in October 2005, the initial response received from companies has been far from satisfactory, said Mr T.C. Nair, whole-time Member, SEBI.

Corporate governance is an important factor in mergers and acquisitions, said Mr Narain. Institutional investors are mostly passive and they could lead the change in corporate governance.

The `Handbook on Corporate Governance' developed by CII and Ernst and Young was also released at the meeting.

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