Welcome to the fifth report on the Indian Corporate Governance Scores. The scores are based on the Indian Corporate Governance Scorecard, developed jointly by the BSE Limited, the International Finance Corporation (IFC) and Institutional Investor Advisory Services India Limited (IiAS). Indian markets have seen steady increase in institutional ownership. From 21.6% in March 2001 to 25.7% after the financial crisis is March 2008, to 34.6% by September 2020. Foreign Institutional Investors (FII’s), who own 20.6% are the largest owners, after the promoters. Indian markets have seen renewed interest from this category: FIIs invested a net amount of ~ Rs. 1.7 tn. in 2020 in the Indian market, a sharp increase over the ~Rs. 1.0 tn. invested by FIIs in 2019. The amount represents one of the highest inflows in emerging markets economies in the year. With the increased holding by institutional investors, the expectations of behavior from corporate India have also changed. Large institutions expect companies to align themselves with globally accepted governance and disclosure norms. Importantly they have the heft to do so.
You can download the full report here