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IFC and BSE collaborate to develop India’s first Corporate Governance Scorecard


In New Delhi:
Minakshi Seth
Phone: +91 11 4111 1000
E-mail: Mseth@ifc.org

Viraj Desai
Phone: +91 4111 1000
E-mail: vdesai1@ifc.org


Mumbai, India, February 04, 2016 — IFC, a member of the World Bank Group, has partnered with BSE, Asia’s oldest and now the world’s fastest exchange, to develop a unique Corporate Governance Scorecard. The scorecard, a first-of-its-kind initiative, will help companies assess their corporate governance performances against national or international-benchmarked practices.
 
Using the scorecard, companies can identify areas of further improvement and track progress over time. It can be used as a powerful analytical tool to make board processes more efficient, improve strategy, aid decision making, and manage risks. Companies can better understand governance and how it affects their operations. An improved governance framework can also help develop more efficient capital markets. IFC works across the region to strengthen capital markets. Increased access to capital enables new investments, improves economic growth, and creates jobs.
 
“The collaboration with IFC to develop the scorecard is a revolutionary step towards benchmarking companies in India. The scorecard will result in increased transparency and boost investor confidence,” said Shri Ashishkumar Chauhan, MD & CEO, BSE.
 
India consistently raises the bar for implementation of good corporate governance practices. In the World Bank’s Doing Business Report, 2016, India’s rank improved by four points over the previous year. This ranking can be enhanced with improved transparency and disclosure of financial and non-financial information. The scorecard will encourage implementation of standards by tracking reform, helping direct change, and ensuring continual improvement. It can also be used by a wide range of stakeholders, including regulators, promoters, and investors.
 
“IFC is involved in strengthening corporate governance worldwide and developing an India-specific scorecard is a step in the right direction. It will result in greater transparency among companies, enhancing investor confidence, access to capital, economic development, and growth,” said Darrin R. Hartzler, IFC’s Global Manager for Corporate Governance. IFC’s corporate governance initiatives have resulted in 95 laws, regulations, and codes being adopted worldwide.
 
IFC is implementing a South Asia Regional Corporate Governance Project with donor support from Japan’s Ministry of Finance. This five-year project provides advisory services to individual firms and partners with local institutions, such as the Indian Institute of Corporate Affairs, to strengthen sector-level work on corporate governance.

India is IFC's top country exposure. IFC's committed portfolio in India is over $5 billion as of June 30, 2015. In FY15, IFC committed $1.4 billion in new investments. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org

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