Compliance to clause 49 improves investors' perception says Ficci

According to FICCI-Grant Thornton report on Corporate Governance review of mid-market listed companies in India reveals that 84 per cent of the companies feel compliance to Clause 49 and the quality of disclosures have improved the investors' perception about them.

Clause 49 is the over-arching legal provision in relation to corporate governance.

It provides a framework with respect to rules and composition of a Board and its committees, disclosure of information like the level of activism shown by Directors in the affairs of the company, regulation of the auditors, internal controls and risk management.

Another key positive trend that emerges out of the review is that 24 per cent respondents complied even with the non-mandatory provisions of Clause 49.

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