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New Delhi: Capital markets are the engine for India’s growth, and policymakers across the spectrum need to keep in mind that this needs to be nurtured and sustained, CII president Uday Kotak said on April 6.

During the pandemic, he said, capital markets supported the economy, helped the corporates raise much-needed funds for sustenance.

“We saw probably the highest levels of fundraise. We saw an active and a functioning capital market, and the regulator SEBI and the Ministry of Corporate Affairs were on their toes to do what is right for markets and to ensure a delicate balance between the interests of issuers and investors,” he said.

Those who had access to capital irrespective of sectors including stressed one were able to navigate and survive the turbulent time, Kotak who is also managing director of Kotak Mahindra Bank said at the CII Corporate Governance Summit.

For access to capital, there is a need to focus on corporate governance because it helps in raising funds, he said, adding, success and failure of enterprises are now determined by corporate governance.

Speaking at the event, Keki Mistry CEO HDFC Ltd said good governance is one of the focus areas of global investors when they make investments and they are willing to pay a premium where corporate governance is perceived to be strong.

With the growing responsibility of independent directors, Mistry said, it would be appropriate to be adequately compensated for their duties.

There should be no regulatory and legal bar in providing stock options to independent directors in addition to cash compensation so long as the combination falls within the remuneration limit prescribed under the Companies Act, he said, adding, the Ministry of Corporate Affairs and Sebi may consider this.