MANGALURU: The Indian stock market is showing an expanding tendency for a zero tolerance for any perceived dishonesty on the part of firms, anticipating them to stay totally clear and compliant in company governance and has significantly punished the firms faltering on transparency, the ASSOCHAM mentioned, cautioning promoters to stay dedicated to bettering shareholders' value.
"Gone are the days when a firm or its promoters could get away with practices which do not follow the best of standards. Thanks to increasing awareness among the investors and strict disclosure norms, one cannot afford any wrong doing , knowing or unknowingly," the chamber mentioned , in the backdrop of a couple of fresh examples the place proportion prices of a couple of firms saw wild fluctuations and erosion in wealth on suspicions of unfair transactions.
The ASSOCHAM mentioned pre-dominance of the foreign portfolio buyers, large collection of home mutual budget with sufficient clout in the market, have also resulted in a situation the place the punishment for any act , which even seems to be incorrect, will also be serious in relation to wealth erosion.
"So, the companies listed in the stock market have to be extra careful in ensuring that the corporate governance standards are in line with the best international practices. In fact, the stock investor is willing to give a handsome premium on the quality of promoters, boards and the CEOs. Since majority of the shareholding is held by the promoters, it is in their interest that their firms are run in the most transparent manner. Extra care should be taken with regard to correct and transparent valuations for all the inter-group transactions. Nowadays, the analysts are all having eagle eyes," mentioned the chamber secretary common D S Rawat.
Besides, credit must even be given to the regulator, SEBI, for ensuring that the firms are made to offer all material disclosures that have a bearing on the stock prices. Things like exchange in the most sensible management , any allegations of incorrect doing, must be answered to in the filings to the stock exchanges so that buyers stay totally cognizant of the developments in the firms , they've stake in, the ASSOCHAM mentioned.
It mentioned, a lot has been finished in the house of company governance whilst "still lot more is needed. Image of company India and the promoters is of paramount significance for gaining the boldness of now not simplest the buyers, but additionally the society at large.
"Gone are the days when a firm or its promoters could get away with practices which do not follow the best of standards. Thanks to increasing awareness among the investors and strict disclosure norms, one cannot afford any wrong doing , knowing or unknowingly," the chamber mentioned , in the backdrop of a couple of fresh examples the place proportion prices of a couple of firms saw wild fluctuations and erosion in wealth on suspicions of unfair transactions.
The ASSOCHAM mentioned pre-dominance of the foreign portfolio buyers, large collection of home mutual budget with sufficient clout in the market, have also resulted in a situation the place the punishment for any act , which even seems to be incorrect, will also be serious in relation to wealth erosion.
"So, the companies listed in the stock market have to be extra careful in ensuring that the corporate governance standards are in line with the best international practices. In fact, the stock investor is willing to give a handsome premium on the quality of promoters, boards and the CEOs. Since majority of the shareholding is held by the promoters, it is in their interest that their firms are run in the most transparent manner. Extra care should be taken with regard to correct and transparent valuations for all the inter-group transactions. Nowadays, the analysts are all having eagle eyes," mentioned the chamber secretary common D S Rawat.
Besides, credit must even be given to the regulator, SEBI, for ensuring that the firms are made to offer all material disclosures that have a bearing on the stock prices. Things like exchange in the most sensible management , any allegations of incorrect doing, must be answered to in the filings to the stock exchanges so that buyers stay totally cognizant of the developments in the firms , they've stake in, the ASSOCHAM mentioned.
It mentioned, a lot has been finished in the house of company governance whilst "still lot more is needed. Image of company India and the promoters is of paramount significance for gaining the boldness of now not simplest the buyers, but additionally the society at large.
Investors handing over severe punishment to lack of corporate governance: ASSOCHAM
![Investors handing over severe punishment to lack of corporate governance: ASSOCHAM]()
Reviewed by Kailash
on
May 06, 2018
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