Strategy execution remains challenge for Indian firms : Parekh

Eminent banker and Satyam board member Deepak Parekh today said the execution of strategies remains a challenge for Indian companies in the current market condition.

In the wake of the Satyam scam, Indian firms need to ensure their investors confidence remains intact to survive in the difficult times.

"The executing strategy in today's chaotic market is the greatest challenge. It is best for boards to focus on their bread and butter business to ensure downturn survival," Parekh said.

However, the corporate governance structure ín India continues to be robust despite one-off cases such as Satyam, he said.

Noting that standard corporate governance practices do not originate from regulatory compulsions, Parekh said the compliance of corporate governance standards is to be ensured in state-run companies as well.

"The compliance of corporate governance is not just the domain of the private sector... One is always tempted to question the vested interest that are preventing certain public sector undertakings of having Independent Directors on the board," he said.

"Most stringent directives are counter productive as ultimately markets are smarter and more efficient than regulations," he said.