• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

(From left) Mr Subir Raha, CMD, ONGC, Mr G. N. Bajpai, Chairman, SEBI, Mr Deepak Parekh, Chairman, HDFC, Mr Anil Ambani, Vice-Chairman and MD, RIL, and Mr Amar Singh, General Secretary, Samajwadi Party, at the `National award for the Excellence in Corporate Governance 2003' function in the Capital on Monday. — Kamal Narang

New Delhi , Dec. 15

CAPTAINS of Indian industry are an unhappy lot. Some of them are feeling the heat of what they consider as regulatory over-kill and even complain that listed companies are being over regulated under the guise of ensuring good corporate governance.

Participating in a panel discussion on `Corporate Governance - Key to corporate excellence,' organised by the Institute of Company Secretaries of India (ICSI) here on Monday, Mr Anil D. Ambani, Vice-Chairman & Managing Director, Reliance Industries Ltd, said, that corporate governance is a state of mind and not merely a checklist that corporates need to comply with.

Mr Ambani held that the current regulatory regime is targeting only the listed companies with very little accountability being shown by the Government departments, financial institutions (FIs), banks and regulatory bodies.

"Why is it that only corporates are being targeted for enforcing corporate governance standards? Why are not the same standards enforced for banks and regulatory bodies? While we as management are answerable to the shareholders on a periodic basis, should not regulators also not go in front of their constituents and get their performance tested," Mr Ambani asked.

He highlighted that none of those who were responsible for regulating the financial market have so far lost their jobs or promotions despite the scams during their term in office. "This would never be a case in a company. Any official in such a similar situation would have been shown the door or lost his promotion," Mr Ambani said.

Echoing similar sentiments, the HDFC Chairman, Mr Deepak S. Parekh, said, "Corporate governance cannot be a one way street and departments of Government should also be held accountable for their performance. There are too many rules and regulations. Why is Government keen on listed companies alone? Corporate governance should come from within and it cannot come unless the senior management has good morals and ethics."

Highlighting the problems areas faced by the corporate sector today, Ms Naina Lal Kidwai, Vice-Chairman and Managing Director, HSBC Securities & Capital Markets, pointed out that the definition of independent directors still remains to be contentious issue. She also deplored the practice of having different rules for private and public sectors.

Mr Ravi Narain, Managing Director & CEO, National Stock Exchange of India Ltd, however, had a different viewpoint on corporate governance. He suggested that the regulatory structure in the country should help in framing a checklist that could be used by the nominee directors during their participation in the Board level activity. "Such a exercise is necessary till corporate governance strikes its root in India," he said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Wipro acquires lease rights on Chandrika

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line