President for stricter laws to tackle unethical corp practic

NEW DELHI: In the face of Rs 7,800-crore Satyam fraud, President Pratibha Patil on Sunday said there is a need for stronger corporate governance 

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to tackle "unethical" practices by some firms, resulting in losses to shareholders. 



"Some companies that over-extended or functioned in an unethical manner have caused losses to shareholders. Such incidences profile the need for stronger corporate governance. There must be clear principles of accountability when such losses take place," she said addressing the nation on the eve of 60th Republic Day. 



Patil said, "The richness of a few cannot be at the cost of depriving others of their due. The traditional Indian ethics emphasised saving wisely, investing productively and not borrowing more that the capacity to repay. These hold valuable lessons for the business world." 



Her address reflected the government's concern on issues like corporate India's biggest fraud in Satyam Computer, global financial crisis and slowdown in the Indianeconomy. 



Stating that the global economic slowdown, triggered by some credit and banking institutions causing a "crisis of confidence", she said there is "need for strengthening oversight mechanisms for financial institutions, and rules which are clear, transparent and uniformly applied, is being actually felt." 





She said the instances of financial imprudence, which can put global welfare at jeopardy, cannot be allowed to happen again, as "India has been impacted by the global environment". 



As governments take necessary domestic measures to ensure that financial institutions and companies adhere strictly to high standards and conduct, it should be ensured that they are accompanied with greater international co-operation, so that there is coordinated action in this regard, she said. 



Reposing faith in the strength of the Indian economy, the President said it has fundamental strength and resilience to remain on course for growth. 



"We could be one of the nations which can act as an engine to help revive the global economy," she said and added the global financial crisis can be an opportunity to reinforce the structure of our domestic economy.