It's collective responsibility to improve corporate governance: NFRA Chief

NFRA Chairperson Ajay Bhushan Pandey stresses the collective responsibility of improving corporate governance in India. Speaking at an Assocham event, Pandey underscores the need for company management, independent directors, audit committees, statutory auditors, shareholders, and regulators to work together as five lines of defense. He advocates for adopting global auditing standards to build investor trust and align with India’s ambition to become the world’s third-largest economy. Pandey highlights the importance of addressing corporate governance reforms, including related party transactions and subsidiary fund siphoning, to prevent corporate failures. He emphasizes that India cannot achieve developed economy status by 2047 without significant audit reforms. The NFRA’s focus on global standards aims to detect fraud early and enhance the credibility of Indian accountants and chartered accountants on the global stage.