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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Conceptual Framework of Corporate Governance

In India, the first major push for governance reform came from a voluntary code framed by an industry body in 1998, followed by a SEBI committee chaired by Kumar Mangalam Birla whose recommendations led to a mandatory listing clause for listed companies. Which pairing is correct?

The CII's Desirable Corporate Governance Code of 1998 was voluntary, while the SEBI Kumar Mangalam Birla Committee recommendations were implemented through Clause 49 of the Listing Agreement, making governance norms mandatory for listed companies. Later committees such as Naresh Chandra and Narayana Murthy refined these norms.

  1. ACII Desirable Corporate Governance Code, 1998 voluntary; Birla Committee led to Clause 49 of the Listing Agreement, mandatory for listed companiesCorrect
  2. BSEBI Birla Committee 1998 voluntary; CII code led to Clause 49
  3. CNaresh Chandra Committee led to Clause 49 in 1998
  4. DNarayana Murthy Committee drafted the CII code in 1998

Explanation

The CII code of 1998 was voluntary. SEBI's Birla Committee (1999-2000) recommendations were implemented as Clause 49 in the listing agreement, making them mandatory. The other options misattribute the bodies or the sequence; Narayana Murthy and Naresh Chandra came later.

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