Corporate governance guidelines for family businesses soon: Sanjiv Bajaj

The industry body's chief Sanjiv Bajaj was speaking at an event where corporate governance charter for startups was launched.

The Confederation of Indian Industry is in discussions to put out corporate governance guidelines for family businesses, said Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv and former President of the Confederation of Indian Industry (CII).

Unlike other countries, India is primarily driven by family businesses, and hence this year we will also focus on discussions on corporate governance in family businesses, said Bajaj in an event in Mumbai. "We are in discussions and will put out something on family businesses soon," said Bajaj on the sidelines of the event.

Also watch: Madhabi Puri Buch addresses CII's 17th Annual Corporate Governance Summit

Bajaj was speaking at the 17th Annual Corporate Governance Summit event held in Mumbai on April 2. There were other panellists such as the Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch;  R. Dinesh, president of CII and chairman of TVS Supply Chain Solutions; and Chandrajit Banerjee, director general of CII.

"Independent directors have an expertise which the family business might not have. So the strategic value that the independent directors can add is of help to the family business," said Farhad Forbes, co-chairman of Forbes Marshall to Moneycontrol on sidelines of an event. He also said that independent directors also bring in a consensus in various issues in families.

The body in the same event launched the CII corporate governance charter for startups. "The charter will help startups assess where they are in their corporate governance journey," said Bajaj.

In a recent Startup Mahakhubh event held in New Delhi, Amitabh Kant, G20 Sherpa and former NITI Aayog Chief Executive had said, that as India is stregnthening its position in global economy,  start-ups must set new standards in corporate governance and financial management and leave no room for lapses.

What Buch said?
The SEBI chairperson has said that Rs 10.5 lakh crore have been raised from Indian capital markets in last 12 months. "We are so focused on the equity markets that we sometimes forget what the bond market is doing for the Indian economy," said Buch.

In the event, Buch said that  almost 44 percent of the time, the market regulator is working on ease of doing business and development. "It is because, ease of doing business is non-controversial it rarely grabs the headlines," said Buch.