ICC hosts conference on corporate governance
Posted on Mar 09 2014 | IBNS
By Hashir Mohammed Khaled, Kolkata, Mar 8 : The Indian Chamber of Commerce (ICC) in collaboration with the National Foundation for Corporate Governance (NFCG) recently hosted a mega conference on corporate governance in financial institutions and Non-bank financial companies (NBFCs), here.
The conference was a significant platform which assessed the present scenario of the financial sector against the backdrop of the dynamic global corporate governance development.
Present at the event were Jishnu Chawdhury (Advocate, Calcutta High Court); Kishore Pariyar (DGM- DNBS RBI) and Malay Mukherjee (MD and CEO, IFCI).
The conference was kicked off with the welcome address delivered by Roopen Roy, Senior Vice President of Indian Chamber of Commerce (ICC).
Roopen Roy said, "Today's conference is very important, if we look back to Sep 15, 2008, we will find out that the Lehmann Brother's fought for bankruptcy because of the chain of events, which led to a serious global financial crisis. India is a country which directly and indirectly comprises financial services which are very vital to the economic sector of our country."
"Therefore, any failure, stresses and difficulties in the financial systems creates a very huge impact in the country and today all financial institutions are linked to a chain global network which led to a limited damage," Roy said.
He added, "Sometimes due to lack of good governance, malpractices we have seen stresses in the financial institution of our country and its it very much essential for us to look for a good governance in our financial institutions and NBFC 's."
"The central piece of good governance in financial institutions are ' Trust '. Trust from investors, stakeholders, regulators. If a trust gets dented it creates a domino effect," Roy said.
He said, "Reserve Bank of India (RBI) and Security Exchange Board of India (SEBI) has done a terrific job in regulating the sector."
The conference focused on the policies for an effective corporate governance system within the financial sector; disclosure and transparency in NBFC's- the key users of the reports and their information needs; the company board's governance roles and responsibilities and corporate governance in banking and non banking financial companies viz a viz inclusive growth.
Kishore Pariyar said, "In order to gain and sustain confidence in the corporate governance of financial institutions and NBFC's, there must be total transparency for long survival."
"Reserve Bank of India (RBI) has gained a popularity within Corporate Governance as they have created guidelines based on NBFC's. These guidelines are selectively applicable to non banking financial companies," Pariyar said.
"The guidelines advices audit committee, nominating committee, risk management committee and also emphasizes on disclosures and transparency," Pariyar added.