India fourth on corporate governance rules front among BRICS nations

NEW DELHI: Corporate governance requirements for firms in India are the clearest and most comprehensive among BRICS nations, a study released by KPMG in Singapore has found. The highest scoring markets with clear and extensive corporate governance requirements are the UK, the US, Singapore and Australia.

India and Malaysia are ranked fourth while Hong Kong and Russia tied for the fifth position. Recent revisions to the corporate governance code have enhanced India’s ranking.

The study analysed corporate governance requirements in terms of clarity, degree of enforceability and number and type of instruments used by the 25 markets. “This reflects the improving standard of corporate governance in India over the years. The results are testimony that norms are resonating well with key stakeholders and perception of the governance standards in India is also improving.

The regulators have taken significant steps to raise the bar on governance in Indian companies by bringing in a paradigm shift in corporate governance needs in the Companies Act 2013,” said Richard Rekhy, CEO at KPMG India.