The National Stock Exchange (NSE) is in the process of introducing a corporate governance code that will be stricter than the existing laws and regulations.
Vikram Limaye, MD & CEO, NSE said the exchange is in the process of creating incentives for listed corporates that adhere to these norms, which will be voluntary. He was speaking at the NSE-IGIDR conference on corproate governance.
‘’Companies are expected to sign up for these norms in exchange for improved visibility, higher liquidity and better quality investors. This initiative has been inspired by ‘Novo Mercado’ in Brazil, which has been highly successful. If introduced, it would be the first time in India that corporate governance would be driven by incentives rather than mandate,’’ said Limaye.
Recently, market regulator Sebi introduced a new corporate governance framework based on recommendations made by an expert panel headed by Uday Kotak, vice chairman and managinggovernan director of Kotak Mahindra Bank.