Sebi to measure level of corporate governance

HYDERABAD: The Securities and Exchange Board of India (Sebi) will soon come out with a mechanism to measure the level of corporate governance in listed companies based on the parameters of wealth creation, management and distribution, its chairman GN Bajpai said on Thursday.
Sebi has asked CRISIL and ICRA, the two leading rating agencies, to develop, in a couple of months, an instrument to measure corporate governance, he told reporters here.
"This is our original idea. Nowhere else in the world such an instrument has been evolved," Bajpai, who is on a day''s visit to the city, said.
Stating that corporate governance in India must move beyond the ''ritualistic form'' to attain ethical governance, the Sebi chairman said the companies would be judged by their performance in creation of wealth, its management and distribution.
Asked about the functioning of regional stock exchanges, he said an expert committee, headed by Justice Kania, had submitted its report to the market regulator on Thursday.
The Sebi has set a time-frame of four weeks to seek opinions and suggestions on the report before referring it to the board for a decision, he said.
Earlier, Bajpai called on Governor C Rangarajan and Chief Minister N Chandrababu Naidu.
During the meeting, Chief Minister requested Bajpai to open a Securities and Exchanges Training Institute here since world class infrastructure was already available, the release added.