21 February 2022: Institutional Investor Advisory Services (IiAS) released the sixth edition of its assessment of Corporate Governances Scores of the S&P BSE 100 index constituents. Because the S&P BSE 100 constituents account for about 67% of total market capitalization, the results of the assessment are a reasonable representation of market practices.
The framework for the Indian Corporate Governance Scorecard was developed over 2015 and 2016, jointly by International Finance Corporation (IFC), a member of the World Bank Group and Bombay Stock Exchange (BSE) and IiAS. The scorecard is based on the widely accepted G20/OECD principles of Corporate Governance. The framework looks at the global best practices but contextualizes it for the Indian nuances - making it far more relevant for our markets.
Our study shows that despite the Covid-19 crisis, corporate India has kept a steady focus on improving its governance practices, primarily due to better disclosures and enhanced stewardship practices. For the BSE 100 universe, median scores of companies increased marginally to 62 from 61. These improvements were built on the median score of 58 in 2019. What is more impressive is that 20 companies were in the ‘LEADERSHIP’ category, against 11 in 2020 and six in 2019.
click here to view IiAS presentation on Indian Corporate Governance Scorecard 2021
click here to view IiAS report on Indian Corporate Governance Scorecard 2021