The Industrial Finance Corpo-ration of India (IFCI) is putting in place systems and procedures within the organisation in a bid to emerge as a role model for corporate governance, IFCI chairman, P V Narasimham, has said.
In an interview with Business Standard, Narasimham said: "When we keep telling corporates to adopt corporate governance processes, we must do so ourselves. That is being done."
He said the Industrial Finance Corporation of India 's board sub-committees were now sharing information on crucial decisions with the full board of directors to ensure greater transparency in decision-making.
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Communications with investors, both in equity and debt, are being strengthened so as to provide updated and transparent information on the institution, he said.
"Earlier, investors used to be content with merely data on sanctions and disbursals. Now, they want NPAs every quarter. That's the kind of change taking place," the Industrial Finance Corporation of India chairman added.
On the issue of ensuring best corporate governance practices in firms where the Industrial Finance Corporation of India has an exposure, Narasimham said the nominee directors were now regularly in dialogue with the IFCI authorities on crucial matters relating to those companies where they were on the board.
The Industrial Finance Corporation of India itself is taking its website as a major area through which it can disseminate data transparently and equitably.
The website, www.ifciltd.com, takes one through the entire institution's details _ ranging from products, shareholding pattern, financial performance and latest happenings and updates.
"Essentially, corporate governance ensures creation of systems where things get reviewed at more than one level for appropriate compliance. Sebi also has made necessary stipulations like furnishing of data more frequently. All this goes a long way in ensuring better corporate practices," he said.
"On the corporates, we are essentially aiming to implement the Confederation of Indian Industry guidelines on governance". He said recently, the role of nominee directors had been laid down.
The second important development was the creation of various committees of the corporate boards, and the need for a periodic change of auditors of the companies.
"The foreign analysts and the press also create a lot of positive pressure on corporates. This is good for transparency," Narasimham pointed out.