Sebi formulating corporate governance ratings

NEW DELHI: Securities and Exchange Board of India (Sebi) is formulating guidelines for corporate governance ratings, its Chairman GN Bajpai said here on Friday.
The ratings will judge the companies and parameters like transparency in decision making and general adherence to corporate governance laws, he said.
Tobacco major ITC Ltd is the first ever corporate or company to be rated "CGR2" by the credit rating agency ICRA.
"It is not enough to frame guidelines of corporate governance and there should also be a mechanism to measure it. We are formulating guidelines for corporate governance ratings system", Bajpai said addressing the 3rd International Conference on Corporate Governance organised by Ficci.
ICRA''s corporate governance ratings is based on a scale of 1 to 6 with "CGR1" denoting the highest ratings and "CGR6" the lowest rating.