NSE launched a new corporate governance initiative – ‘NSE Prime’, that NSE listed companies can adopt voluntarily. NSE Prime is a frameworkthat prescribeshigher standards of corporate governance for listed Companies than those required by regulations. Additional disclosure requirements have also been prescribed to provide for higher quality of public information and greater transparency. Listed companies that voluntarily choose to be part of NSE Prime will need to comply with pre-defined norms on an ongoing basis, which will be monitored by NSE.
This initiative will raise the bar for corporate governance standards in India, enable investors to identify companies which have voluntarily signed up for higher standards of corporate governance, broaden the quality of investors in listed companies and further strengthen trust in Indian capital markets.
Shri Uday Kotak, MD & CEO Kotak Mahindra Bank, and Shri T.V. Mohandas Pai, Chairman, Aarin Capital Partners delivered keynote addresses for the event. Other eminent participants were Shri Amar Gill, Head of Investment Stewardship – APAC, BlackRock, Shri Arun Duggal, Chairman, ICRA, Shri Cyril Shroff, Managing Partner, Cyril AmarchandMangaldas, Shri Navneet Munot, MD & CEO, HDFC Asset Management Co. Ltd. and Shri Sanjeev Bikhchandani, Founder & Executive Vice-Chairman, Info Edge.
“NSE is committed to building a vibrant and resilient capital market and toward this goal we have undertaken this initiative. Improved corporate governance standards, greater transparency and better disclosures will help Companies build stronger and sustainable businesses that can stand the test of time. This will not only help companies and investors but also accelerate market development at large” said Shri Vikram Limaye, MD & CEO, NSE.
Commenting on the initiative Shri Uday Kotak said “Corporate Governance is the key to investor trust in corporations. Corporates need to be able to build their strategic guardrails along with transparency on how they operate. NSE’s initiative is another step in the direction of raising the standards of corporate governance.”
Commenting on the initiative Shri T.V. Mohandas Pai said “Good corporate governance needs business entities to follow standards which are set at a higher level than regulations do! It is
one of the best investments that businesses can make, as it lowers the cost of capital and makes business more competitive. Recognizing such entities who set higher standards for themselves enables the overall improvement in the business environment.”
About National Stock Exchange of India Limited (NSE):
National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2020. NSE is ranked 4th in the world in the cash equities by number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for calendar year 2020. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading, clearing members and listed companies with the rules and regulations of SEBI and the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology.
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