Sebi mulls 'out of the box' approach for effective corporate governance

In March, the Irdai issued a stewardship code for companies in its ambit

Capital market regulator Securities and Exchange Board of India (Sebi) is exploring “out of the box” measures to improve corporate governance standard at India Inc.

Speaking at a corporate governance summit “Gatekeepers of Governance', Ajay Tyagi, chairman, Sebi said: “The need of the hour is to have a back-to-basics reconceptualisation of what sound corporate governance means.”

To have an effective enforcement mechanism, Sebi will have to do some out-of-the-box thinking, he said, while adding that not just the shareholders but even the other stakeholders can act as change agents.

The move towards a "stewardship code" could be a good step