The National Stock Exchange launched ‘NSE Prime’ on Tuesday — a framework that allows listed companies to sign-up for higher governance standards than what is required under the law. They can sign up voluntarily for NSE Prime, which will require them to comply with higher governance standards.
It had been reported that NSE was looking to launch a voluntary compliance platform inline with Brazil’s ‘Novo Mercado’.
“Improved corporate governance standards, greater transparency and better disclosures will help companies build stronger and sustainable businesses that can stand the test of time,” said Vikram Limaye, ND, NSE in a release.
An NSE Prime company needs at least 40% public shareholding as against 25% under the Sebi rules. The chairperson has to be unrelated to the managing director. Board members of these companies cannot serve on the boards of more than five listed companies.
Commenting on the launch, Kotak Mahindra Bank managing director Uday Kotak said, “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.”
Post a Comment