Corporate Non-governance

Government's attempt to increase its nominees on the board of Public Sector Banks is a step taken backwards. Earlier, it had directed these banks to go for their board's approval before taking any decision on raising the interest rates. This is unjustified keeping in view the increasing importance of corporate governance. Indian companies have been successful in acquiring the companies and raising large-scale funds from abroad because of the high standards of corporate governance showed by them. Either the Government should rethink its decision or it should also instruct SEBI for ignoring the corporate governance norms.