NSE, the National Stock Exchange, launched NSE Prime, a new corporate governance initiative that the companies listed on the exchange can adopt voluntarily.
NSE Prime is basically a framework that prescribes higher standards of corporate governance like high-quality public information and greater transparency for listed companies other than those mandatorily required by regulations. Companies can voluntarily be a part of this initiative and will be monitored by NSE.
This initiative is expected to raise the bar for corporate governance standards in India. It will enable investors to identify companies that have voluntarily signed up for higher standards of corporate governance and hence broaden the quality of investors in listed companies which will strengthen trust in the Indian capital markets.
“Improved corporate governance standards, greater transparency, and better disclosures will help companies build stronger and sustainable businesses that can stand the test of time. This will not only help companies and investors but also accelerate market development at large,” said Vikram Limaye, MD and CEO of NSE.
Uday Kotak, MD, and CEO of Kotak Mahindra Bank said to Yahoo!, “Corporate governance is the key to investor trust in corporations. Corporates need to be able to build their strategic guardrails along with transparency on how they operate. NSE’s initiative is another step in the direction of raising the standards of corporate governance.”
