New Delhi: While the Central government is preparing to strengthen the Ministry of Corporate Affairs by introducing a new company bill, the issue of regulatory rights between the Ministry and SEBI (Securities and Exchange Board of India) is turning controversial.
SEBI has urged the government that all corporate governance related matters should be handed over to it.

On Wednesday, in a seminar organized by Assocham, Executive Director of SEBI, Usha Narayanan said, “Corporate governance is gradually gaining importance. In the interest of shareholders and customers, all the governance related rights should be given to SEBI.”

Citing the parliamentary committee report of the Finance Ministry, Narayanan said, “The present laws for corporate governance should be made more stringent.”

She added, “The present laws for corporate governance are inadequate. These have been formed on the basis of those implemented in foreign countries. But we should make laws keeping the Indian scenario in mind.”

At present, corporate governance related matters of non-registered companies are under the Companies Act, 1956 whereas registered companies come under the ambit of SEBI rules and regulations.

According to SEBI, if they are given the rights for corporate governance, it will facilitate their decision making policies in the matters related to shareholders, promoters and Board of Directors.