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How to sustain open innovation in the face of rising financial and computational demands
Ministries are designed to set policy, not to run companies or make investment decisions. In today's complex business world, they're simply not equipped to play fund manager
Critics argue that proxy advisory firms apply criteria that often differ from local regulatory requirements, leading to a lack of uniform recommendations across firms
Despite India's robust regulatory framework -strengthened by the 2013 Companies Act and Sebi's listing regulations - the chairman identified a troubling gap between structure and spirit
When a business that relies heavily on artistic talent cites AI as a disruptive force, it signals more than just an industry-specific concern
Over the past one, three, and five years, many Indian equity mutual funds have underperformed their benchmark indices
Given the concentrated ownership and control, external investors are willing to invest only when they can trust the company's governance and leadership
While the number of shareholders continues to rise, investor participation in annual general meetings has been steadily declining
As businesses grow, the operating environment becomes more complex, and investors become more demanding
A swift response from the Indian regulatory system will be crucial to prevent delays in India's strategic progress
In US, prior to 2019, there were no formal regulations that dealt with proxy advisory firms. Two large proxy advisors followed general guidelines and best practices, but there were no specific rules
Digital transformation, cybersecurity, artificial intelligence, recruitment and retention, climate change, geopolitics are just some of the more recent issues that boards need to address
The primary objective of the NFRA has been to strengthen the financial ecosystem and ensure the credibility of financial statements
Ensuring safe working conditions is more than a moral obligation---it is crucial for economic success
It is moving in a direction completely opposite of where Sebi has taken us
Rather than surprising investors with their final decisions, disclosing findings on an ongoing basis would better prepare the market for eventual outcomes
That's the only way they can navigate future innovations, ethics, and mitigate risks
The Japan story is still in its early days. But the lesson it holds is that companies, regulators, and the broader market micro-system all need to continuously evolve
While challenges persist regarding executive compensation and board effectiveness, governance is now firmly on the board's agenda
As demonstrated by Mr Musk's soaring salary package plan, the process for securing approval for CEO compensations is deeply flawed, whether in India or the US