SEBI norms, CII drives, great boon for Indian companies: Ramadorai

Bangalore, Nov 6 (UNI) With the Country's economy going global with gumption and guts, CII initiatives and SEBI norms like Clause 49, had proved a boon to Indian Companies in practicing good governance, Tata Consultancy Services CEO S Ramadorai said today.

Delivering his address on 'Corporations of the Future', organised by the CII here, he said for corporate sector, good governance had led to long-term investors coming forward to pay a premium to buy stock in the Indian companies.

"There is no doubt that good governance in corporate sector has gone someway in off-setting our low rankings as a country at the global corruption indices. The Clause 49 SEBI norms, which seeks to improve the governance in Indian corporates, CII initiatives taken in this regard earlier and the interest shown by corporates in Sarbanes Oxley Act (SOX) of the US, has acted as drivers in Indian corporate sector adapting better governance system," he said.

Good governance had meant that Indian IT industry earn kudos of the customers globally, despite increased fears of data theft and privacy concerns. "There is no doubt that good economic governance means that our banking sector is healthier than most globally and our Forex reserves touch 170 billion Dollars," he said.

However, he regretted that in other sectors, the governance had not reached the desired levels. The electricity sector, despite soaring demand was still unable to manage to stand on its own feet.

Urban Ceiling Act in Mumbai had created a very poor governance practices in the real estate sector.

"Thankfully, the Indian Railways, under the enigmatic Laloo Prasad Yadav, is improving its governance by leaps and bounds and has not only become profitable but also delighted the travellers," he said.

MORE UNI RS RM RKN1241