Tuesday, February 14, 2006
Corporate Governance and a New Company Law for India
India is adopting a new Company Law better to position itself to compete globally. The new Law, which will be introduced in Parliament in April, will be a revision of the Company Law of 1956. The Ministry of Company Affairs is also poised to introduce Accountability Adoption Standards that will make industry more transparent.
In addition, a report on corporate governance in India was released recently by the Institute of International Finance, Inc. The report finds that good corporate governance practices in India are voluntary due to a general belief that the capital markets reward good governance practices. The Securities and Exchange Board of India regulates India's stock exchanges. SEBI has revised governance requirements in light of the Cadbury and Higgs reports in the UK and Sarbanes-Oxley in the US.