Jump in retail investors raises stakes for corporate governance: NFRA’s Pandey
Live MintNew Delhi: The substantial increase in household interest in the equity market has made corporate governance extremely important, as any corporate scandal could affect a larger number of households now than in the past, said Ajay Bhushan Pandey, director general and chief executive of Indian Institute of Corporate Affairs and chairperson of the National Financial Reporting Authority. Pandey said at an event organized by IICA, a think-tank set up by the ministry of corporate affairs, that the increase in individual investors participating in the equity market makes it more critical for companies to follow strong corporate governance practices, as investor trust in companies is crucial for the country’s development. Pandey also said that when the market indices move up, everyone is happy, but a serious corporate governance lapse could lead to people losing trust. Also read: NFRA Board revises all audit standards despite ICAI dissent on some likely effective from FY26 As per the regulatory regime, listed companies have to have half of their board seats reserved for independent directors if they have an executive chairman.
History of this topic
)
Budget 2022: How corporate governance will take centre stage in 2022
Firstpost
Investment decisions in India hinge on corporate governance standards: IFC
Live Mint
Opinion | Independent directors have an exam to crack
Live Mint
Press Release: Independent Directors Walking On Thin Line
The QuintDiscover Related
)
