NEW DELHI: NSE on Tuesday launched a new corporate governance initiative – ‘NSE Prime’, that NSE-listed companies can adopt voluntarily. NSE Prime is a framework that prescribes higher standards of corporate governance for listed Companies than those required by regulations.
Additional disclosure requirements have also been prescribed to provide for a higher quality of public information and greater transparency. Listed companies that voluntarily choose to be part of NSE Prime will need to comply with pre-defined norms on an ongoing basis, which will be monitored by NSE.
The company in a press statement said this initiative will raise the bar for corporate governance standards in India, enable investors to identify companies that have voluntarily signed up for higher standards of corporate governance, broaden the quality of investors in listed companies and further strengthen trust in 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 Shri Vikram Limaye, MD & CEO, NSE.
Investors on Dalal Street have become increasingly sensitive to corporate governance. Any lapse is punished heavily by the market.
“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,” said Uday Kotak, CEO at Kotak Mahindra Bank.