A Ficci-Grant Thornton report on corporate governance reveals that 84% of the companies feel compliance to Clause 49 and the quality of disclosures have improved the investors perception about them. The joint report is second in the series starting 2008-09. Clause 49 is the overarching legal provision in relation to corporate governance.
The study pointed out that 24% respondents complied even with the non-mandatory provisions of Clause 49. This is a significant indicator of developments to come as compliance to non-mandatory provisions not only helps in better corporate governance but also makes adoption of these standards easier as and when they get regulatory back up. One such example is the provision of whistle-blower policy that is proposed to be made mandatory by the new Companies Bill.