Industry needs to separate ownership from management; every disagreement need not become litigation: Nirmala Sitharaman
FM Nirmala Sitharaman has called for stronger corporate governance, greater transparency and a clearer separation between ownership and management. She said businesses should engage early with regulators and work towards solutions, as “every disagreement need not begin as litigation.”
- Sep 22, 2026,
- Updated Sep 22, 2026 1:54 PM IST
Finance Minister Nirmala Sitharaman on Tuesday called for stronger corporate governance, greater trust between businesses and regulators, and a clearer separation between ownership and management. Speaking at AIMA’s 53rd National Management Convention (NMC) 2026, she said businesses should be able to disagree without immediately turning differences into legal disputes.
Sitharaman said legal recourse will always remain available, but “every disagreement need not begin as a litigation.” She stressed the importance of engaging with the government and regulators at an early stage, putting evidence on the table and participating seriously in consultations.
“There is considerable value in engaging early, placing evidence on the table, participating seriously in consultations, and working towards solutions before differences become disputes,” she said.
According to the Finance Minister, trust between businesses and public institutions cannot simply be demanded. It has to be built through the conduct of both sides.
MUST READ: ‘I think the world of Chandra,’ says JPMorganChase Chairman Jamie Dimon amid reappointment row
She also said businesses need to provide predictability, transparency and a willingness to listen while engaging with regulators and the government.
“A mature economy should be capable of disagreement without immediately becoming adversarial,” Sitharaman said.
Sitharaman said sound governance should not be viewed simply as a set of external codes that institutions adopt wholesale. Instead, it should develop from how institutions conduct themselves and the standards they hold themselves to.
She also emphasised the need for industry to separate ownership from management, highlighting the importance of clear institutional roles and governance practices.
The comments come as businesses increasingly interact with regulators and policymakers on issues ranging from regulations to industry consultations. Sitharaman's emphasis was on constructive engagement before disagreements turn into formal disputes, while retaining legal remedies when necessary.
Sitharaman also highlighted quality as another important standard for Indian businesses and institutions.
“The other thread is the standard we hold ourselves to, quality, which must become India’s next national movement,” she said.
Finance Minister Nirmala Sitharaman on Tuesday called for stronger corporate governance, greater trust between businesses and regulators, and a clearer separation between ownership and management. Speaking at AIMA’s 53rd National Management Convention (NMC) 2026, she said businesses should be able to disagree without immediately turning differences into legal disputes.
Sitharaman said legal recourse will always remain available, but “every disagreement need not begin as a litigation.” She stressed the importance of engaging with the government and regulators at an early stage, putting evidence on the table and participating seriously in consultations.
“There is considerable value in engaging early, placing evidence on the table, participating seriously in consultations, and working towards solutions before differences become disputes,” she said.
According to the Finance Minister, trust between businesses and public institutions cannot simply be demanded. It has to be built through the conduct of both sides.
MUST READ: ‘I think the world of Chandra,’ says JPMorganChase Chairman Jamie Dimon amid reappointment row
She also said businesses need to provide predictability, transparency and a willingness to listen while engaging with regulators and the government.
“A mature economy should be capable of disagreement without immediately becoming adversarial,” Sitharaman said.
Sitharaman said sound governance should not be viewed simply as a set of external codes that institutions adopt wholesale. Instead, it should develop from how institutions conduct themselves and the standards they hold themselves to.
She also emphasised the need for industry to separate ownership from management, highlighting the importance of clear institutional roles and governance practices.
The comments come as businesses increasingly interact with regulators and policymakers on issues ranging from regulations to industry consultations. Sitharaman's emphasis was on constructive engagement before disagreements turn into formal disputes, while retaining legal remedies when necessary.
Sitharaman also highlighted quality as another important standard for Indian businesses and institutions.
“The other thread is the standard we hold ourselves to, quality, which must become India’s next national movement,” she said.