And for a Friday returning from Mumbai after a Corporate Governance summit, some thoughts….. some musings…..
India has now become the fifth largest Economy displacing UK, which is a milestone achievement. Undoubtedly, Corporates are the mainstay of the Economy. However, of the more than 5300 listed companies it’s just 100 companies that make almost 90% of the market capitalisation. These are the companies, wherein Management and Ownership is clearly demarcated with good Corporate Governance, which means they have structures and processes that ensures accountability, transparency, responsiveness, compliance, equity and empowerment, ensuring sustainable growth and profitability. Imagine if we enable another 400 companies to achieve these standards, the nation’s target of achieving a 5 Trn $ economy could be realised and we will be the third largest Economy behind US and China.
Many agencies and institutions are striving hard to facilitate Good Governance. Excellence Enablers, a brainchild of Mr. M. Damodaran, Ex SEBI Chairman, is one prominent amongst them. Over a two day summit, the country’s top corporate honchos deliberated on every aspect of Good Governance including; can Ethics and Economics coexist, Role and accountability of Independent Directors, Governance and nuances in MSMEs, Role of Board Committees and ability of NRC to appoint, monitor and compensate CEO and KMPs – a very large spectrum of analysis and recommendations created for policy makers and Corporate Managements to ponder and implement.
Given the uncertainty due to Ukraine war following Covid upheaval and increasingly the adoption of “China plus one” strategy by global majors, India must capitalise the opportunity, the expedient way, the transparent way, the SEEGOS way.