The National Stock Exchange (NSE) launched a new corporate governance initiative -- NSE Prime, which the companies listed on the exchange can adopt voluntarily.
About NSE Prime:
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 higher quality of public information and greater transparency.
Listed companies that voluntarily choose to be a part of NSE Prime will need to comply with pre-defined norms on an ongoing basis, which will be monitored by the NSE.
Advantage:
raise the bar for corporate governance standards in India,
enable investors to identify companies which have voluntarily signed up for higher standards of corporate governance,
broaden the quality of investors in listed companies
further strengthen trust in the Indian capital markets.
About Corporate Governance:
Corporate governance is the key to investor trust in corporations.
proper governance actually supports entrepreneurship and professionalism for sustainable growth.
It gives confidence to investors.
Good corporate governance needs business entities to follow standards which are set at a higher level than regulations do.
It is one of the best investments that businesses can make, as it lowers the cost of capital and makes business more competitive.
Recognizing such entities which set higher standards for themselves enables the overall improvement in the business environment.
