Lok Sabha Question No. 1693 (UNSTARRED), answered on 2017-03-10
Subject: NFCG
Ministry: CORPORATE AFFAIRS
Asked by: VASANTHI M.

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION No. 1693

ANSWERED ON FRIDAY, THE 10TH MARCH, 2017/ PHALGUNA 19, 1938 (SAKA)

## NFCG

## QUESTION

1693. SHRIMATI VASANTHI M.

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) the details of objectives behind setting up of the National Foundation for Corporate Governance (NFCG) and its performance so far; and
- (b) the effective steps taken by NFCG to propagate the need for following good corporate governance?

THE MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS                      (SHRI ARJUN RAM MEGHWAL) कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री ( श्री अर्जयन राम मेघवाल )

## ANSWER

(a)&(b): The objectives  of the National Foundation for Corporate Governance (NFCG) set up in 2003, as per the trust deed, are given in the Annexure. With the  objective  of  fostering  a  culture  of  good  governance,  the  NFCG  has accredited forty Seven premier Indian Institutions/Organizations as National Centers for Corporate Governance. These centers conduct seminars, workshops conferences, directors' orientation programmes etc. for promoting good corporate governance practices and also carry out research work in this field.  More  than  250  events  have  been  organized  and  30  research  works completed under the aegis of NFCG, besides publication of compendium on corporate sector and inclusive growth. The research report of the foundation, which  include  subject  such  as  the  role  of  independent  directors,  CSR, corporate governance in energy sector, reforms in banking sector etc. have also been hosted on its website for the benefit of the Stakeholders.

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Annexure referred to in part (a) of the reply to Lok Sabha Unstarred Question No. 1693 for 10.03.2017

- (a) To provide a platform to deliberate issues relating to good corporate governance as the key to sustainable wealth creation;
- (b)  To  sensitize  corporate  leaders  on  the  importance  of  good  corporate  governance,  selfregulation and directorial responsibilities- statutory, social and environmental;
- (c) To stimulate and to facilitate exchange of experiences and ideas between corporate leaders, policy  makers,  regulators,  law  enforcing  agencies,  non-government  organizations  and voluntary agencies with a view to developing a framework for corporate governance reforms in the context of liberalization and globalization;
- (d)  To  provide  research,  training,  practice,  building,  standard  setting,  advocacy,  rating, monitoring, recognition and related support in the field of corporate governance;
- (e) To provide financial or any other assistance directly or indirectly for activities which seek to promote corporate governance including research and training;
- (f) To develop strategies that enhance value for all stakeholders and ensure long term benefits to the shareholders and the society at large;
- (g)  To  establish  and  deepen  links  with  organizations  in  various  parts  of  the  world which promote corporate governance for exchange of ideas and for collaborative actions, projects and programmes;
- (h) To institute national awards and recognitions for excellence in corporate governance and develop a system of corporate governance rating;
- (i) To collaborate and to support, directly or indirectly, the initiative of any individual, group, organization or institution in promoting corporate governance;
- (j) To develop a code of best practices for corporate governance taking into consideration the international examples and to promote its voluntary adoption by the corporate bodies;
- (k) To prepare, print and publish any papers, periodicals or newspapers, books or leaflets either on its own or in collaboration with other persons/ entities through print or other media and to contribute to any papers or periodicals to disseminate information and knowledge in the area of corporate governance;
- (l)  To  facilitate,  promote,  commend  and  collaborate  on  the  proposals  from  individuals, associations  and  organizations  for  funding  by  national,  international  and  multi-  lateral organizations as also industry- associations, regulators and governments;

(m) To provide advice, consultancy and technical and managerial support to the beneficiaries of  the  Trust's  programmes  through  a  network  of  advisors  drawn  from  the  industry  and institutions of excellence; and

(n) Other related objects.

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