CII for a model code of conduct for India Inc
Industry body CII has advocated a model code of conduct for India Inc to protect investors' interests.india Updated: Sep 17, 2006 12:55 IST
Industry body CII has advocated a model code of conduct for India Inc to protect investors' interests and retain their confidence in the business.
Indian companies would be in a better position to protect the interest of investors if they practice transparency within their own businesses, CII said in a statement.
SEBI has made it mandatory for listed companies, to implement a code of conduct for all board members and senior management of the company, the execution of which should be made public in the company's annual report, it said.
The chamber opines that a model code of conduct would also ensure that the board acts in cohesion with the companies' interest and do not disclose any confidential information.
"Through the code of conduct, board members and senior management will act in the best interests of the company and investors, comply with all applicable laws, rules and regulations and help create and maintain a culture of high ethical standards and commitment to compliance," it added.