"Greater cooperation between SEBI, DCA vital"

Naresh Chandra committee for corporate governance on Thursday said that there was a need for greater co-operation between SEBI and the Department of Company Affairs (DCA).

Participating in a roundtable on 'Corporate Governance: Myth to Reality', organized by CII, Naresh Chandra said "In India, committees have noticed the duplication of work between SEBI and DCA."

In the foreword to the book by the same name and written by Kaushik Dutta and his wife Kshama V Kaushik, Chandra said, "at least one committee has questioned the manner in which stringent conditions are being stipulated under clause 49 of SEBI regulations on listed companies."

He said the company recommended that SEBI may refrain from exercising power of subordinate legislation in areas where specific legislation exists in the Companies Act 1956.

"Obviously there is a need for greater co-operation between SEBI and DCA," Chandra said.

Also participating in the discussion were Tejendra Khanna, Chairman of Ranbaxy and Tarun Das of CII.

Tejendra Khanna of Ranbaxy said, "we operate in the US market where strict quality control is the order of the day. If it's flouted, companies are not allowed to do business there. We are proud of our standards in Ranbaxy."

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