Sebi to announce new corporate governance norms

"I hope you all will agree if enforcement action is taken, we will be doing the correct thing," he added.

Clause 40A deals with minimum level of public shareholding, while clause 49 deals with corporate governance, with focus on the constitution of board and top management.

"My request to all of you (corporates) is to help Sebi to ensure that we reach a level that is much higher and which is in keeping with the best in the world," he said.

Sinha also asked companies to show real commitment towards corporate social responsibility.

Talking about increase in number of proxy advisory firms, Sinha said SEBI is watching the trend.

In the last few years, there has been rise of a very structured, spontaneous, highly visibly and agitated movement on various issues such as social and political, Sinha said, adding that participants of such movements are no longer the traditional workforce of political parties.

"Corporations cannot ignore this movement. When larger society is facing this, it is natural that the same guiding principles will be affecting us (corporations) as well," he said.