Out of the total 1,327 listed (as on October) on the National Stock Exchange, 98 per cent are in compliance with the corporate governance regulations, said Ravi Narain, managing director, National Stock Exchange.
When asked about the 20 companies against whom the Securities and Exchange Board of India had started adjudication proceedings for non-compliance of Clause 49, pertaining to Corporate Governance (CG), he said that there were no such issues with the companies listed on NSE.
Speaking at the CII conference on Corporate Governance here, Narain said the biggest challenge is how an investor can find out the level of CG by a company.
“It is hard even for many institutional investors to find that out,” he said. He also raised the issue of ways to tackle the price-sensitive information that float around as rumours in the media and market. Narain suggested that CII form a code of conduct for companies to handle this issue.
Earlier, Sebi chief M Damodaran talked about the quality of directors adorning the boards of companies. “We don’t want people who can grace boards, but those who can function,” he said.
Regarding the government nominated directors on the boards of companies, Damodaran asked, whether they function only as representatives of the government or look in totality about the interests of the company, forgetting from where they come from.