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Speaking at the 18th CII (Confederation of Indian Industry) Corporate Governance Summit held in Mumbai, SEBI Chief Tuhin Kanta Pandey emphasized on the importance of corporate governance due to the increase in retail participation in the securities markets.
Pandey said, “Today, we have over 13 crore investors in our ecosystem investing across 5400+ listed companies as compared to 4.9 crore five years ago. Similarly, the number of mutual fund investors has now grown to 5.4 crore from 2.2 crore as at the end of FY20. Increasing penetration of our securities markets, rise in retail shareholding (including through mutual funds) accompanied with increase in size of the listed universe sets the stage for greater significance for corporate governance.”
The SEBI chief also explained how listed companies can benefit from a better corporate governance. He said, “A company known for strong governance enjoys a positive reputation, which can lead to better credit ratings, easier access to capital, and higher valuations.”
The ex-SEBI chief M Damodaran also spoke at the event. While answering a question on investment advisors, he said that the industry needs better investment advisors to build a strong capital market. He also asked investment advisors to focus not only on selling products but also on educating investors.
