Figure 4: No Copyright Infringement Intended

Context:

• 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.

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