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The National Stock Exchange (NSE) has launched a new corporate governance initiative – ‘NSE Prime’, a framework that prescribes higher standards of corporate governance for listed companies than those required by regulations. All the NSE-listed companies can adopt NSE Prime voluntarily.

These additional disclosure requirements that have also been prescribed will provide for a 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," a release said.

The initiative will raise the bar for corporate governance standards in India, enable investors to identify companies that 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.

Vikram Limaye, MD & CEO, NSE, said NSE is committed to building a vibrant and resilient capital market. "...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."

Uday Kotak, MD and CEO of Kotak Mahindra Bank, 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."

The world’s largest derivatives exchange by trading volume, the NSE is ranked 4th in the world in the cash equities by a number of trades.

Also read: Equities bounce back  after  sell-off

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