India - Report on the Observance of Standards and Codes (ROSC) : Corporate Governance Country Assessment
The report identifies several areas for reform: 1) sanctions and enforcement should be credible deterrents to help align business practices with the legal and regulatory framework, in particular with respect to related party transactions and inside...
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| Format: | Corporate Governance Assessment (ROSC) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/04/6569512/report-observance-standards-codes-rosc-corporate-governance-country-assessment-india http://hdl.handle.net/10986/14465 |
| Summary: | The report identifies several areas for
reform: 1) sanctions and enforcement should be credible
deterrents to help align business practices with the legal
and regulatory framework, in particular with respect to
related party transactions and insider trading; 2) the
current institutional framework places the oversight of
listed companies partly with the Department of Company
Affairs (DCA), partly with the Securities and Exchange Bard
of India (SEBI), and partly with the stock exchanges. This
fragmented structure gives rise to regulatory arbitrage and
weakens enforcement; 3) Board practices need to be
strengthened; 4) institutional investors acting in a
fiduciary capacity should be encouraged to formulate a
comprehensive corporate governance policy, including voting
and Board representation. Together with the detailed policy
recommendations, these measures will help implement reforms,
and provide opportunities for issuers to signal good
practices to investors and the market. |
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