Kumar Mangalam Birla is on the Board of RBI at the time of applying for a license to open a bank under the new licensing policy. He was the Chairman of the Committee that worked on Corporate Governance for SEBI and the same was adopted by SEBI. He should have practiced what he preached by stepping down from the Board on the day of signing the application for license.
Tone at the top is at the heart of governance.What a tone to set!!! - being a regulator.
ReplyDeleteDual responsibility. Firstly, as Dr. Yerram Raju has rightly opined, Mr. Birla should have resigned the moment Birla Group decided to apply for Banking License. Secondly, RBI guidelines should have at least stipulated the same to avoid subjectivity in its evaluation procedure.
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