In a bid to bring in greater transparency and enhance accountability of India Inc, market regulator Securities and Exchange Board of India (SEBI) today said it is working on an alternative model of corporate governance.
“A committee is working on it. We have also asked the MCA (Ministry of Corporate Affairs) to broaden the scope of section 55 of Companies Act 1956 which is now clause 22 of Companies Bill,” SEBI Executive Director Usha Narayanan said at an Assocham event here.
The alternative model of corporate governance will be designed in such a manner that it will suit the needs of Indian companies, she said adding the existing model is closer to international practice.
Corporate governance is maximising the shareholder value in a Corporation while ensuring fairness to all stakeholders, customers, employees, investors, and other stakeholders.