India is now implementing important corporate governance reforms that position the country's corporate governance framework as above average compared to other emerging market economies. However, as is the case with many other countries weaknesses remain in enforcement of rules and regulations, concludes a new report published today by the Institute of International Finance (IIF).
Mr. Edward Baker, Chief Investment Officer of Global Emerging Markets, Alliance Capital Management, and Chairman of the Equity Advisory Group (EAG) of the IIF, said: "Our report is being published as new Indian regulations are coming into effect with the aim of significantly strengthening the system of corporate governance. The Securities and Exchange Board of India (SEBI), the independent capital markets regulator, has made significant efforts to keep up with changing corporate governance practices in leading equity markets around the world, namely the United Kingdom and the United States. We welcome the actions that the Indian authorities are pursuing."
IIF Managing Director Charles Dallara said, "It is important that Indian corporate governance standards continue to improve as the country becomes an increasingly important participant in global trade and finance. It is encouraging that, as our new report points out, companies such as Infosys Technologies, the Tata Group, ICICI Bank and the Housing Development Finance Corporation Ltd. (HDFC), are developing sound corporate governance approaches. These can serve as models for the thousands of listed Indian companies that have yet to put in place governance systems that meet the requirements set by the Indian authorities and that can enhance international investor confidence."
See full Press Release.
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