Mumbai, 17 April (IANS). SEBI chairman Tuhin Kant Pandey said on Thursday that corporates should ensure high governance standards, as any failure can have a widespread impact on the market economy.
Addressing the CII Corporate Governance Summit, the market regulator chief said that it is necessary to stop failures in corporate governance to maintain financial stability.
He said that SEBI would continue to expect high standards of governance, but true and permanent changes should come from within the corporate boardroom.
Pandey said that to ensure transparency in the market, SEBI has issued instructions to release some information from time to time, such as share holding patterns, compliance with corporate governance requirements on a quarterly basis, financial results and fund movement etc.
He said, “Our goal is to create a self-regulating environment by compulsory to reveal information, mandatory board structures and monitoring mechanisms, which encourages moral and responsible corporate behavior.
The SEBI chief asked the industry to adopt the REG tech solution to comply with the industry, reporting, streamline processes and improve the operational efficiency of enterprises.
REG tech solution helps businesses. Also, to automate business compliance processes, reduce costs and improve risk management, you can avail technology such as AI, machine learning and cloud computing.
Pandey highlighted that SEBI and market exchange are using suitable technology solutions for better supervision.
The use of technology by regulators has been very helpful in detecting early signs of market misuse and non-non-compliance.
He said that the culture of continuous compliance between regulated institutions can be promoted using technological progress.
He also said that there is a need for balance between regulation and ease of doing business.
SEBI chief said, “We know that more regulations may obstruct development and innovation. Also, very low regulation can reduce the trust of stakeholders and adversely affect development. Therefore, there is a need to maintain balance.”
-IANS
SKT/CBT
