Indian corporate governance 'must balance regulations with freedom'

India's minister of corporate affairs has highlighted the need for corporate governance laws in the country to strike the right balance between regulation and flexibility.

Dr M Veerappa Moily has highlighted the importance of supporting industry during the Confederation of Indian Industry's International Corporate Governance Summit in Mumbai this week.

Alongside a number of other corporate sector stakeholders, the minister has underlined the need for "systemic change", in line with the rise of democratic capitalism in the Asian nation.

As such, he noted that the government will need to regulate industry in a way that ensures it is on the right course, but without being overly dominant.

Dr Moily added: "It is important that laws and corporate governance manages to create values in personal, public and corporate life. New cultures need to be made."

This comes after business experts told the Economic Times earlier this month that Indian companies that suffer corporate governance lapses could risk losing the support of shareholders.