What increased investor ownership means?
Corporate India is heading towards a future where it will not just be managements and boards, but investors as well who will drive corporate behaviour.
The role of institutional investors in Indian corporate governance is evolving. Starting from being providers of capital, their role has extended. Today, as shareholders, they realize that they are more than purveyors of capital and that they, in turn, have a fiduciary responsibility to their investors to engage with their portfolio companies. Taking on this responsibility has helped outside shareholders declare, when needed, their displeasure with promoter control and management-proposed resolutions from which minority investors do not stand to gain. In India, this dynamic must continue to grow and evolve to create an appropriate balance in the corporate governance hierarchy.
Read IiAS’ blog Institutional Investors: Growing heft, by clicking this link.