IFC, SEBI, CII to sensitise directors on corporate governance

NEW DELHI: IFC, an arm of the World Bank, will hold a series of workshops along with market regulator SEBI and industry body CII to sensitise independent directors about issues concerning corporate governance and the role they can play in preventing frauds like Satyam.

"We will organise workshops for independent directors in Delhi, Mumbai, Kolkata and Chennai. It will help them in playing their role in a company's board more effectively," SEBI former Executive Director (now associated with IFC's global corporate governance forum) Pratip Kar said.

During the workshops, he said, "independent directors will be sensitised about the need of corporate governance, the issues they need to focus on and the questions they should raise at board meetings."

The Rs 10,000 crore Satyam accounting fraud has also raised questions about the role and integrity of independent directors.

SEBI-promoted National Institute of Securities Markets (NISM) will provide technical assistance in holding the programme.

Noting that the corporate governance issue has become more important after the Satyam fraud, Kar said, "we need to take preemptive steps to the extent possible to avoid recurrence of such corporate governance failures."

The workshop will help independent directors enhance their understanding of their role as a board member and their effective contribution in the working of the board, Kar said.

"We have recently organised a workshop for media at Mumbai and Delhi on the finer points and reporting of corporate governance," he added.

IFC's global corporate governance forum has partnered NISM to promote awareness of corporate governance in India. The forum also helps in disseminating good corporate governance practices, sponsoring research and supporting technical assistance.