In January, the Securities & Exchange Board of India (SEBI) published a public consultation paper on proposed revisions to the corporate governance requirements for listed companies in India.
The idea is to create a more coherent and progressive corporate governance framework, with the aim of reestablishing India as a destination of choice for international investors.
Issues in the SEBI consultation focused on the following points: Succession planning, mandatory rotation of audit partners, related-party transactions, controlling shareholders and royalties and investor code.
The SEBI initiative, which will seek to update the Indian listing standards later this year, has the potential to reinstate India as a leader in the region alongside Singapore. However, the success of the new governance regime will hinge upon whether the spirit of the revised listing standards as well as the form is embraced by both companies and institutional investors.