SEBI in talks with OECD for corporate governance guidelines

Stock market regulator Securities and Exchange Board of India is in bilateral talks with the Organisation for Economic Co-Operation and Development for keeping the corporate governance farmework in India. This would be aligned with six fundamental principles ratified by the OECD. These six principles comprise ensuring basis for effective corporate governance framework, rights of shareholders, equitable treatment of shareholders, role of stakeholders of corporate governance, disclosure and transparency and the responsibility of the board. Addressing an NSE seminar on ‘Corporate Governance and Role of Independent Directors' on Friday, whole-time SEBI member, Mr Rajeev Aggarwal, said: “The proposed new Companies Bill also contains provisions regarding corporate governance. Once the Bill is approved, it would further strengthen the legal framework for corporate governance.” He also called upon all the stakeholders to generate trust by displaying robust corporate governance practices. Joint MD of the National Stock Exchange, Ms Chitra Ramkrishna said, “Independent Directors carry important responsibilities toward companies' stakeholders, particularly towards minority shareholders, and there is a need to increase awareness among existing and prospective Independent directors on the ways in which they can discharge their duties effectively. We hope that there are many more initiatives like this.”

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