A swift response from the Indian regulatory system will be crucial to prevent delays in India's strategic progress
In US, prior to 2019, there were no formal regulations that dealt with proxy advisory firms. Two large proxy advisors followed general guidelines and best practices, but there were no specific rules
Digital transformation, cybersecurity, artificial intelligence, recruitment and retention, climate change, geopolitics are just some of the more recent issues that boards need to address
The primary objective of the NFRA has been to strengthen the financial ecosystem and ensure the credibility of financial statements
Ensuring safe working conditions is more than a moral obligation---it is crucial for economic success
It is moving in a direction completely opposite of where Sebi has taken us
Rather than surprising investors with their final decisions, disclosing findings on an ongoing basis would better prepare the market for eventual outcomes
That's the only way they can navigate future innovations, ethics, and mitigate risks
The Japan story is still in its early days. But the lesson it holds is that companies, regulators, and the broader market micro-system all need to continuously evolve
While challenges persist regarding executive compensation and board effectiveness, governance is now firmly on the board's agenda
As demonstrated by Mr Musk's soaring salary package plan, the process for securing approval for CEO compensations is deeply flawed, whether in India or the US
From the first Budget to today, India's economy has changed, requiring boards to adapt and think on a global scale
Founders must prioritise governance from the outset rather than deferring it until just before the IPO if they want to create long-term value
Health issues, divorce, court battles, moral turpitude, and more can all distract the CEO and impinge on a company's performance. So, how much of their private life should a company disclose?
The 2023 update to G20 and OECD's corporate governance norms signals progressive changes in our markets
As governance regulations evolve, the task of building a board that truly serves a company's needs is going to become more challenging
As Sebi's new norms prompt a transparency wave, companies grapple with the challenge of ensuring what to disclose and when to appeal to investors
The answer is both yes and no. Just like human board members, AI has potential and limitations but cannot be solely relied upon to make decisions
In his twin interactions with bank boards, RBI governor did not ask them to maximise profits or shareholder value. He instead urged them to prioritise the stability and growth of the financial system
Sebi made ESG reporting using the BRSR (business responsibility and sustainability reporting) framework mandatory for the top 1,000 listed companies from FY23 onwards