“A committee is now working on it. The basic idea is to further improve corporate governance,” she said.
The alternative model of corporate governance will be designed in a manner to suit the needs of Indian companies, she said, pointing out that the existing model is closer to international practice.
“The guiding principle behind corporate governance should aim at maximising shareholders’ value in a corporation. At the same time, it should aim at ensuring fairness to all the stakeholders, customers, employees and investors,” she added.
Sebi would like that it have a greater say in ensuring norms on corporate governance for listed and to-be-listed companies. Pointing out that corporate governance should keep up with the times in a dynamically changing scenario, she said that Sebi and the Ministry of Corporate Affairs were collaborating to set up an inter-regulatory cell to interpret laws in “a clear way” and bridge existing gaps. The ministry and stock exchanges are putting together early warning systems to detect firms which gather funds from markets and vanish.
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