India's corporate governance proposals 'don't go far enough'

Many of the proposals contained in the recent review of corporate governance in India should already be standard practice, according to Sharmila Gopinath.

The research manager at the Asian Corporate Governance Association made her comments to IR Magazine in light of the announcement that a full governance report is set to follow last month's draft code before the end of the year.

She explained that some of the draft's recommendations previously featured in Clause 49 of the Securities and Exchange Board of India's listing agreement on corporate governance.

However, Ms Gopinath also acknowledged the ongoing difficulties of encouraging compliance among Indian businesses.

"Corporate governance recommendations are hard to follow because many of the companies have a controlling shareholder - either a family member or the state - and it is difficult to tell them what to do," she told the publication.

The Wall Street Journal recently interviewed Salman Khurshid, India's corporate affairs minister, about the country's Companies Bill.

Mr Khurshid said that he hopes to see the legislation, which will reform regulations relating to mergers and acquisitions and other corporate areas, become law "in the coming year".