IAS Gyan

Daily News Analysis

NSE Prime

23rd December, 2021 Economy

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  • The National Stock Exchange (NSE) launched a new corporate governance initiative -- NSE Prime, which the companies listed on the exchange can adopt voluntarily. 

About NSE Prime:

  • NSE Prime is a framework that prescribes higher standards of corporate governance for listed companies than those required by regulations.
  • Additional disclosure requirements have also been prescribed to provide for higher quality of public information and greater transparency. 
  • Listed companies that voluntarily choose to be a part of NSE Prime will need to comply with pre-defined norms on an ongoing basis, which will be monitored by the NSE.



  • raise the bar for corporate governance standards in India,
  • enable investors to identify companies which have voluntarily signed up for higher standards of corporate governance,
  • broaden the quality of investors in listed companies
  • further strengthen trust in the Indian capital markets.


About Corporate Governance:

  • Corporate governance is the key to investor trust in corporations.
  • proper governance actually supports entrepreneurship and professionalism for sustainable growth.
  • It gives confidence to investors.
  • Good corporate governance needs business entities to follow standards which are set at a higher level than regulations do.
  • It is one of the best investments that businesses can make, as it lowers the cost of capital and makes business more competitive.
  • Recognizing such entities which set higher standards for themselves enables the overall improvement in the business environment.