Kolkata, Feb 14: Securities and Exchange Board of India is likely to make corporate governance rating (CGR) mandatory for companies.
SEBI executive director SC Das told reporters at the sidelines of a seminar organised jointly by FICCI and Crisil on Saturday that "everybody nowadays wants good corporate governance". The Narayanamurthy Committee set up by SEBI had been asked to look afresh into various aspects of corporate governance, he said, adding the regulator would finally take a decision, particularly on issues relating to the role of independent directors. Das said the report of the committee was to take effect from April 1, 2004. However, the matter had been kept in abeyance due to lack of adequate response from the industry. The corporate governance reflected the health of the industry, something that foreign fund managers were concerned about, he said. On the role of independent directors, Das said they should be alert and impartial. Currently, only a handful of blue chip companies were going for voluntary CGR. Bureau Report