The Chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, expressed concerns about the disruption of global energy flows due to escalating tensions in West Asia. Speaking at the 19th CII Corporate Governance Summit, he highlighted the potential pressure on oil and gas supplies, leading to sharp price fluctuations. Pandey emphasized that the ongoing conflict could have significant consequences for the worldwide economy.
Regulatory advancements were a focal point of Pandey’s address, where he discussed the evolution of the framework in a strategic manner. He mentioned the reinforcement of disclosure norms through both periodic and event-based requirements, the establishment of clear materiality thresholds and timelines, and the enhancement of board independence and supervision. Additionally, accountability mechanisms like secretarial audits and an increased role for compliance officers have further solidified governance standards.
Addressing corporate governance, Pandey emphasized the importance of transitioning the focus from board composition to the quality of boardroom interactions and decision-making processes. He stressed the critical role of independent directors and advocated for continuous capacity building through structured learning and robust knowledge frameworks. Pandey also called for a shift towards continuous oversight from periodic reviews, citing institutional capability as crucial for enhancing governance outcomes.
Meanwhile, Chandrajit Banerjee, the Director General of the Confederation of Indian Industry (CII), acknowledged the swift responses of the government and the Reserve Bank of India (RBI) in stabilizing market sentiment amidst the evolving scenario. Despite these efforts, challenges persist in energy, logistics, and trade sectors, impacting entities like MSMEs, exporters, and energy-intensive industries, which are still grappling with operational and financial difficulties. Banerjee suggested that the subsequent phase of policy responses might necessitate targeted liquidity support, credit facilitation, and measures to ensure foreign exchange stability.
