CHENNAI: The Institute of Company Secretaries of India (ICSI) is all set to launch its corporate governance rating model soon. Announcing this at a press conference here, S. N. Ananthasubramanian, President, ICSI, said the institute has set up a 6-member committee to strategise and develop the model.
The committee has also come out two rankings — India Mandatory and ICSI Desirable. While India Mandatory ranking can be given to those corporates which report 100 per cent compliance with mandatory requirements, ICSI Desirable can be awarded for those who go a notch above and set up a new benchmark in corporate governance, he explained. The market regulator SEBI has released a draft consultative paper on the issue, wherein it said only credit rating agencies may be permitted to do the rating.
“However, once the draft model is ready, we will approach SEBI to permit even others to do the rating,” he said. Elaborating on the benefit of the rating system, he said funding agencies such as banks and other financial institutions may insist on good rating in terms of corporate governance to operate in a more secure environment.
Source: The Hindu Business Line