Amitabh Kant, India’s G20 Sherpa and former CEO of NITI Aayog, has advocated for the implementation of a self-regulatory framework for Indian startups amidst a series of corporate governance lapses and disputes within the startup ecosystem. Speaking at an event, Kant highlighted the importance of integrity for sustainable long-term growth and emphasized the need for clear norms to guide startups in self-regulation from their inception to early and growth stages, and even during the IPO process.
Referring to recent corporate governance failures at various internet companies in India, Kant urged startups to ensure compliance with regulations and urged founders to prioritize integrity. He emphasized that good governance and integrity are crucial for startups to evolve into top-class companies in the long run.
Over the past year, several cases of corporate governance lapses have come to light, tarnishing the reputation of Indian startups. Disputes have arisen in companies like Zilingo and BharatPe, while GoMechanic and Mojocare have faced allegations of manipulating financial data.
Kant expressed concern that such incidents could erode investor confidence in the Indian startup ecosystem. He stressed the importance of robust and timely financial reporting by startups, as it is crucial for maintaining trust and transparency.
The call for a self-regulatory framework comes at a critical time when restoring trust and confidence in the Indian startup ecosystem is essential. By implementing strong governance practices, startups can not only attract and retain investors but also ensure their long-term success and contribute to the overall growth of the Indian economy.
