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MR M. DAMODARAN, Chairman, SEBI, and Mr M. Rafeeque Ahmed, Chairman, FICCI, Tamil Nadu State Council, at a meeting organised by FICCI in Chennai on Friday. — Bijoy Ghosh

Chennai , July 21

Corporate governance is not about numbers but about the quality of people. This would be the SEBI's focus as in 2006 and 2007 as it looks at the content of companies' boards in the context of compliance with Clause 49 of the listing agreement, according to Mr M. Damodaran, Chairman.

Addressing a meeting on market-oriented reforms and corporate governance imperatives organised by the FICCI, Tamil Nadu State Council, he said that too much time has been lost on discussions on the numbers of independent directors.

`Put off rating'

Mr Damodaran suggested that industry bodies put off plans for rating and rewarding companies on corporate governance for now. There has to be a large number of companies effectively engaged in corporate governance before the best can be selected.

Mr S. Sundareshan, Chairman of the Forward Markets Commission, said that once the amendment on the Forward Contracts Regulation Act is legislated, the Commission would have greater independence and act as independent regulator.

The challenge

The challenge in corporate governance is to achieve a balance in profitability and social responsibility.

The Commission has urged the Government to permit mutual funds and foreign investors to participate in bullion and crude initially before other commodities, he said.

Prerequisites for Competitiveness

Mr Rafeeque Ahmed, Chairman of the FICCI, Tamil Nadu State Council said that good governance and management are preconditions for competitiveness of an economy.

In a globalised environment, financial capital moves across national boundaries.

Investors need the confidence to involve in markets that are governed and managed properly.

Corporate governance ensures wealth creation and equitable sharing among stakeholders, he said.

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