Sebi has been barking, will now bite: chief

Reports suggest that Sebihas on occasions been lax with those who are non-compliant. Some of corporate India’s leaders believe that Sebi has been barking but not biting. If the bite takes the form of delisting a company or so, it ends up punishing the poor shareholders who are locked into these companies without proper exit, the Sebi chief said.

“We want to persuade people and corporates in particular that good conduct, good governance, good value systems are the ones that will deliver the results which can be sustainable over the years. You have other models in different countries. What we have chosen in India is a rule-based approach to regulation than a principle-based approach,” he said. “Corruption is a divide between the haves and have-nots. Corruption impedes growth. Ends will not justify the means if values are not upheld. Means and ends are just as important. But do not abandon values and compromise for the sake of reaching an end,” he said.

Business ethics, corporate governance and corporate social responsibility should go alongside one another. This is an indivisible package. Any attempt to divide this or to look at these as different and separate from one another may end up reaching nowhere, Damodaran pointed out.

Later, delivering the inaugural address, Tata Sons Director J J Irani said, “Values support business in a number of ways. It provides us with an internal discipline, trust, that is the essence of leadership. Values give faith at a time when we feel we are surrounded by darkness. It provides us courage and confidence, creates a culture that can withstand all turbulence.”

Ethics in business is an essential factor and it pays in the long run. “Never sacrifice your principles in any environment,” Irani added.