:: SEBI's strengthening of corporate governance norms ::

The Securities and Exchange Board of India ('SEBI') has recently taken two initiatives to further strengthen corporate governance practices by (a) seeking to end the practice of permanent board seats in listed companies; & (b) introducing norms that facilitate a balanced and holistic approach for ESG ratings.

Our Managing Partner was interviewed for his views on board level appointments, which have been featured by Outlook Planet in their story titled, 'SEBI To Introduce Regulatory Framework On ESG Disclosures' that can be viewed at LINK.

Monish's views are presented below for the ease of your reference.

Best regards

Markets Team

MGC Global Risk Advisory

According to Monish G Chatrath, Managing Partner, MGC Global -

“The right blend of a rules-based and principles-based approach can seek to enhance corporate governance. However, this recipe can only succeed if companies make concerted efforts to comply with the legal framework in substance and go beyond the legal framework, to the moral framework and ethical framework in the context of which business decisions are made. Board level appointments should be viewed as meritorious positions in principle, which a clear focus on optimization of value creation for stakeholders.

Across the globe, permanency on the board is becoming a myth and may well soon be a cliché. The form of permanency that the current and emerging business environment requires is for the members of the board to facilitate healthy scepticism and constructive tension that focuses on ongoing innovation, objectivity in decision making and a drive for change for the better. The best professionals must have a seat on the boardroom, based on competence and their performance and impact should be assessed regularly and objectively.”

About MGC Global Risk Advisory

Recognized as one of the '10 most promising risk advisory services firms' in 2017, as the 'Company of the Year' in 2018 &, 2019' (both in the category of risk advisory services), one of the 'Top Exceptional Companies to Work For’ in 2020, amongst the ‘Top 25 Customer Centric Companies’ in 2020 and 'The Consultant of the year' in 2021 (in the category of risk advisory services); MGC Global is an independent member firm of the US$ 4.6 billion, Atlanta headquartered - Allinial Global.

MGC Global provides services in the areas of internal audits, enterprise wide risk management, control assessments (SOC, IFCR & SOX), process re-engineering, governance frameworks, IT risk advisory, GDPR, VAPT, ISO readiness, cyber security, CxO transformation and forensic services. Our Firm has the capabilities to service its clients through its offices in Bengaluru, Mumbai, NCR; and has service arrangements in all major cities in India.

About Allinial Global

Allinial Global (formerly PKF North America) is currently the world's second-largest member-based association (with collective revenues of approximately USD 4.6 billion) that has dedicated itself to the success of independent accounting and consulting firms since its founding in 1969. It currently has member firms in 99 countries, who have over 26,000 professional staff and over 4,000 partners operating from 688 offices across the globe.

Allinial Global provides its member firms with a broad array of resources and support that benefit both its member firms and their clients in the key impact areas of learning and development, human resources, international outreach, technical support, knowledge-sharing platforms through its specialized communities of practice, marketing resources, information technology and best practices in practice management.