Recent developments in corporate governance in India

Recent developments in corporate governance in India highlight both challenges and the need for stronger regulatory frameworks.

1. Zee Entertainment's Corporate Governance Settlement: Zee Entertainment Enterprises recently filed a settlement application with SEBI (Securities and Exchange Board of India) to resolve an investigation into governance lapses, including alleged fund diversion and undisclosed related-party transactions. This move underscores the increasing scrutiny from regulators and the importance of maintaining transparent governance practices to safeguard investor trust and prevent reputational damage

2. Board Refreshment Trends:As the ten-year term limit for independent directors, introduced by the Companies Act, reaches its end in 2024, many boards across India are undergoing refreshment. Companies are prioritizing diversity and bringing in new talent to enhance board effectiveness. This trend reflects the growing focus on aligning governance with global standards and ensuring boards are equipped to manage future challenges effectively

3. Global Standards Alignment: Ajay Bhushan Pandey, Chair of NFRA (National Financial Reporting Authority), recently emphasized the need for India’s corporate governance framework to align more closely with global practices. This push aims to attract more foreign investments by fostering trust through high standards of transparency and accountability