Capital markets engine for India’s growth: Uday Kotak
Capital markets are the engine for India’s growth and policymakers across the spectrum need to keep in mind. While that this needs to be nurtured and sustained, CII president Uday Kotak said on Tuesday.
During the pandemic, he said, capital markets supported the economy, helped the corporates raise much-needed funds for sustenance. While we saw probably the highest levels of fundraising. We saw an active and functioning capital market, and the regulator SEBI and the Ministry of Corporate Affairs. It was on their toes to do what is right for markets, and to ensure a delicate balance between the interests of issuers and investors, he said.
On the other side, those who had access to capital irrespective of sectors including stressing ones who were able to navigate and survive the turbulent time. Kotak who is also managing director of Kotak Mahindra Bank said at the CII Corporate Governance Summit. Meanwhile, for access to capital, there is a need to focus on corporate governance because it helps in raising funds, he said.
While success and failure of enterprises are now determining by corporate governance. Speaking at the event, Keki Mistry CEO HDFC Ltd said good governance is one of the focus areas of global investors. When they make an investment and are willing to pay a premium where corporate governance is perceiving to be strong.
The growing responsibility of independent directors, Mistry said, would be appropriate to be adequately compensated for their duties. But there should be no regulatory and legal bar in providing stock options to independent directors. In addition to cash compensation as long as the combination falls within the remuneration limit. Prescribed under the Companies Act, he said, adding, the Ministry of Corporate Affairs and SEBI may consider this.