Sebi for debate on corporate governance

Sebi for debate on corporate governance

Categorising firms on ESG complinace will be done after consensus on it: Bhave

Sebi Chairman C Bhave

Securities and Exchange Board of India, Chairman Chandrakant Bhave said Sebi will watch corporate governance trends of companies and will discuss with other regulatory agencies to seek ways to improve the environmental, social and governance (ESG) standards of companies.  He was delivering a key note address at a high level forum for investor and companies titled: “Capital Markets Forum: Responsible investment in India,” organised by National Stock Exchange (NSE) in association with The Energy and Research Institute (TERI-Europe) here.

Further,Bhave said: “We want to have dialogue with other regulatory agencies (to improve ESG standards of companies). We are happy to discuss this with the Reserve Bank, the government and other agencies.”

The country’s exchanges can also contemplate the idea of categorising companies in terms of ESG compliance, as and when a consensus emerges on the matter among market participants, he adeed.

While pointing out that ESG values cannot be imposed on the market by mere regulation, Bhave said the initiatives should come from companies themselves. “If most of the people think that legislation cannot be adopted, it cannot be enforced.”

Continuing in the same vein, Bhave said when a mishap occurs in the market on account of a lack of good practices among companies, the regulators will have to step in and take appropriate action.  “When there is a mishap in the model, the Government and regulators cannot sit back,” added he. 

 Other notable personalities who spoke at the forum include O.P.Bhat of State Bank of India, M.V.Nair of Union Bank of India, Satish Mandhana of IDFC Private Equity and Vivek Mehra of YES Bank.