The Hindu Business Line : BSE plans corporate governance index

Kolkata, Nov 28 In a bid to put in place a proper mechanism for the capital market to recognise corporate and social sustainability contribution of listed companies, the Bombay Stock Exchange was planning to create a new indexation of such companies, which will be recognised by investors as such and taken note of in their investments.

Speaking to newspersons here at the sidelines of a panel discussion organised by the Institute of Company Secretaries of India, Mr Rajnikant Patel, Managing Director & CEO of BSE, said the methodology for such an index, which allows recognition of “triple bottomline” concept to be built into the psyche of the market, was now being developed in-house.

Admitting it involved a complex process of assessment, Mr Patel said it will have to evolve itself to some extent. He, however, did not stipulate the time framework within which the new CSR and sustainability index would be ready.

Responding to the ITC Chairman, Mr Y.C. Deveshwar’s, suggestion at the panel discussion that market regulators, including stock exchanges need to create guidelines for recognising the triple bottomline contributions of Indian companies through a marking system, like Trust Marks, Mr Patel said it was possible for SEs to play a significant role here. In his opinion, through such a corporate governance index, SEs can help usher in greater transparency into company disclosures.

Mr Deveshwar, who moderated the panel discussion on ‘Are corporate sustainability and sustainability interdependent’, suggested that fiscal benefits may be given to companies which make these solid voluntary disclosures based on the global sustainability initiatives.

The panelists included Mr Harshvardhan Neotia, Chairman, Ambuja Realty; Mr Rajnikant Patel, Managing Director, BSE; Dr Y.R.K. Reddy, Founder, Academy of Corporate Governance and Yoga Consulting; and Mr S. Mahalingam of TCS.

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