Mumbai, February 22, 2008—In consultation
with the Securities Exchange Board of India and the National Institute
for Securities Markets, the IFC Global Corporate Governance Forum has designed
a program to address key elements of corporate governance reform, capacity
building, and enhance awareness in India.
As part of this collaboration, a business
investor dialogue is being organized to facilitate discussions between
the private sector, domestic and international investors, and the Securities
Exchange Board and to shed light on that state of governance in Indian
companies. Issues to be explored include the effectiveness of various governance
structures, the role of the board, disclosure, and enforcement.
The event will give participants an opportunity
to make recommendations for improving corporate governance among enterprises.
Discussions around research on the state of corporate governance
in India’s listed companies will be conducted by Professor Vic Khanna
of the University of Michigan, Professor Bernard Black of the University
of Texas, and Professor N. Balasubramanian of the Indian Institute of Management
The ongoing research includes surveys of
500 publicly traded companies, representing various sectors in the country's
six largest cities. This research is supplemented by publicly available
information. The data analysis seeks to identify the connections
between various aspects of governance, company performance, and profitability.
The event aims to identify challenges facing
companies, offer possible measures for improvement, and provide an opportunity
for local and international business leaders and investors to share views
and experiences on the investment climate in India. It also aims to generate
discussions and obtain policy recommendations from an assembly of local
business representatives and investors.
Participants expected include investors and
senior business leaders from Barclays, Bombay Stock Exchange, Crisil, National
Stock Exchange, Fortis, Kotak, KPMG, Tata Motors, and Wipro.
IFC, a member of the World Bank Group, fosters
sustainable economic growth in developing countries by financing private
sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
About Global Corporate Governance Forum
The IFC Global Corporate Governance Forum
is an IFC multi-donor trust fund facility. It was co-founded by the
World Bank and the OECD in 1999. Through its activities, the forum
aims to promote the private sector as an engine of growth, reduce the vulnerability
of developing and transition economies to financial crisis, and provide
incentives for corporations to invest and perform efficiently in a socially
responsible manner. It sponsors regional and local initiatives that
address the corporate governance weaknesses of middle- and low-income countries
in the context of broader national or regional economic reform programs.
Its donors include IFC and the governments of Canada, France, Luxembourg,
the Netherlands, Norway, Sweden, and Switzerland. For more information,