Naresh Chandra, chairman of the government's corporate audit and governance committee, said Indian corporates were focusing more on the short term rather than the long term.

Speaking at an interactive session with members of Indian Chamber of Commerce, he said, "Companies are focusing more on short term growth while making frequent disclosures."

He said the market regulator, Securities and Exchange Board of India (Sebi), may have to address the problem as it might have a negative impact on the overall economy.

He said very small shareholders should pull out of the companies to help the firms reduce cost involved in sending various corporate documents including annual reports.

According to him, shareholders having shares worth a couple of thousand rupees could be termed as very small.

He pointed out that the committee thought that bank representatives on boards of companies should behave as directors.

"The committee found that the bank nominees are on the boards to see whether companies pay their outstandings to banks," he added.