Title: Corporate governance and institutional investors - law in India

Authors: I. Sridhar

Addresses: Humanities and Social Sciences, Indian Institute of Management Indore, Prabandh Shikhar, Rau Pithampur Road, Indore - 453556, Madhya Pradesh, India

Abstract: Financial markets globally are experiencing competitive monetary easing. In this context, India stands as land of opportunities in attracting institutional investors, especially the foreign institutional investors (now called as foreign portfolio investors). The purpose of this paper is to critically analyse corporate laws in India relating to institutional investors in the context of corporate governance. The study reports that institutional investors role is different from that of other investors in ensuring compliance with corporate governance norms. In spite of incentive to encourage institutional investor activism, legal and business hurdles are acting as deterrence to greater institutional investor activism. An implication of this paper is that it addresses the issue of legislative response in ensuring greater activism on the part of institutional investors.

Keywords: corporate governance; institutional investors; shareholder activism; nominee directors; insider trading; India.

DOI: 10.1504/IJICBM.2018.094245

International Journal of Indian Culture and Business Management, 2018 Vol.17 No.2, pp.139 - 150

Received: 19 Dec 2016
Accepted: 19 Nov 2017
Published online: 23 Aug 2018 *

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