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India Inc and market regulator Sebi have engaged in war of words over the new and stricter corporate governance norms. Corporate India has expressed difficulties in meeting some of these, including the norm on independent and women directors and getting nods for related-party transactions within the October 1 deadline
INDIA INC'S DEMANDS
- Extend deadline for implementation of new corporate governance norms to April 2015
- The pool of existing independent directors is not enough to meet Sebi's criteria
- If Sebi continues to act as an activist, we might have to rethink whether to stay listed
- If we fail to meet certain norms within the stipulated time, extension or exemptions should be made
- We are struggling to find women directors and we might have to compromise on the quality of directors
- Sebi has become a dragon
SEBI'S VIEW
- The market was aware of new corporate governance norms since January 2013, sufficient time for corporate India to implement the norms
- In a population of more than one billion, it is difficult to fathom that India Inc is finding it difficult to find 1,000 independent directors
- If India Inc thinks they can shift to some other jurisdiction, they might find it difficult. World-wide, enhanced corporate responsibility is being made a norm
- That can be given a on case-to-case basis. But corporate India can't take it as a way out
- If we are being termed dragons, it is high-time we start spitting fire
