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.
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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