Policymakers need to avoid one-upmanship while writing rules: Kotak

Billionaire banker Uday Kotak on Tuesday rued that there is a tendency among policymakers to display “one-upmanship” when it comes to adding rules and regulations, which they need to desist from. “We need to keep in mind that as we add more rules and regulations, that it should not be ticking the box. At times, there seems to be a one-upmanship between different players in trying to make themselves look better, including in many cases the policymakers,” Kotak said.

He did not elaborate on the comment made while addressing an event on governance organised by the NSE.

The banker, who heads private sector lender Kotak Mahindra Bank and chaired a Sebi panel on corporate governance, said interests of all stakeholders are being taken care of with governance frameworks.

“Governance is not just about what is put in place, it is about the state of mind, about a genuine belief that we must grow on a principle of doing the right things without giving up the core objective of business which is enterprise, creativity, professionalism and growth,” he said.

He also exuded confidence that good governance will always yield superior performance for companies in the listed space.

We need to continue with the focus on better governance and a combination of principles and rule-based regulations, he said.

The country’s largest stock bourse on Tuesday launched ‘NSE Prime’, a corporate governance initiative which prescribes higher standards of corporate governance for listed companies than those required by regulations and can be adopted voluntarily.

“Improved corporate governance standards, greater transparency and better disclosures will help Companies build stronger and sustainable businesses that can stand the test of time,” its managing director and chief executive Vikram Limaye said.