The National Stock Exchange has launched NSE Prime; here’s all you need to know about it

The National Stock Exchange (NSE) introduced NSE Prime, a new corporate governance program that companies listed on the exchange can voluntarily accept, on Tuesday.

The NSE Prime framework establishes stronger corporate governance standards for listed firms than are required by regulations. Additional disclosure criteria have also been imposed in order to ensure that public information is of higher quality and more transparent.

This initiative will raise the bar for corporate governance standards in India, allowing investors to identify companies that have voluntarily signed up for higher corporate governance standards, broadening the quality of listed company investors, and further strengthening trust in the Indian capital markets.

“Companies will be able to establish stronger and more sustainable enterprises with improved corporate governance standards, greater openness, and better disclosures. This would not only benefit businesses and investors, but it will also hasten the development of the market as a whole “NSE’s MD and CEO, Vikram Limaye, stated.

Uday Kotak, MD and CEO of Kotak Mahindra Bank, a billionaire banker, stated of the project, “Investor confidence in firms is based on corporate governance. Corporates must be able to develop strategic guardrails while maintaining openness in their operations. The NSE’s effort is another step toward improving corporate governance standards.”

He went on to say that good governance encourages entrepreneurship and professionalism, which is essential for long-term prosperity. “We must ensure that the highest level of governance is implemented. It instils trust in investors “According to Kotak.

TV Mohandas Pai, the former CFO of Infosys, stated, “Good corporate governance necessitates commercial organisations adhering to higher-level standards than those imposed by regulations. It is one of the best investments a company can make because it decreases the cost of capital and increases the company’s competitiveness. Recognizing entities that establish higher standards for themselves helps to strengthen the business climate as a whole.”