The Securities and Exchange Board of India is in talks with the Organisation for Economic Co-operation and Development (OECD) to keep the domestic corporate governance norms aligned with the global standards ratified by it.
Paris-based OECD, an international grouping of top economic powers, has ratified six ‘Principles of Corporate Governance’, which have become a benchmark for policymakers, investors, corporations and other stakeholders worldwide.
“SEBI (Securities and Exchange Board of India) is having bilateral talks with OECD for keeping the corporate governance aligned with six fundamental principles ratified by OECD,” SEBI Whole-Time Member, Mr Rajeev Kumar Agarwal, said here today.
These six principles involve ensuring the basis for an effective corporate governance framework, the rights of shareholders, equitable treatment of shareholders, role of stakeholders in corporate governance, disclosure and transparency, and the responsibility of the boards.
Speaking at a seminar organised by the National Stock Exchange in association with the National Institute of Securities Market (NISM) and the Bombay Stock Exchange on corporate governance, Mr Agarwal also called upon all the stakeholders to generate trust by displaying robust corporate governance practices.
He further said that SEBI had last year held a policy dialogue with OECD on ‘Minority Shareholders Protection: Related Party Transactions’ and it was attended by all stakeholders.
“We expect to have many such initiatives for the development of corporate governance standards in India,” he added.
OECD was originally set up as a block of the American and European economic powers in 1960, but has started working with emerging giants like India, China and Brazil over the years.