India ranks 13^th in the protection of minority investors!

a. 12

b. 13

c. 14

d. 15

 

India has ranked 13^th in the protection of minority investors. Global ranking in terms of protection of minority investors has slipped three notches to 13, but is much higher than the 130th rank attained by India for ease of doing business.

• Sub-ranking for the protection of minority investors is topped jointly by New Zealand and Singapore
• Others that ranked higher than India are Hong Kong, Malaysia, Kazakhstan, the UK, Georgia, Canada, Norway the UAE, Slovenia and Israel
• In World Bank’s Doing Business report, India just moved one place from last year to 130
• Others that ranked higher than India are Hong Kong, Malaysia, Kazakhstan, the UK, Georgia, Canada, Norway, the UAE, Israel and Slovenia
• In the latest World Bank Doing Business report, New Zealand topped the list while Singapore was ranked second
• The report said protection of minority investors indicator measures the protection of shareholders in corporate governance
• According to the report, India carried out an ambitious, multi-year overhaul of its Companies Act, bringing Indian firms in line with global standards
• This is more so in respect of accountability and corporate governance practices while ensuring businesses contribute more to shared prosperity through a quantified and legislated CSR requirement
• Corporate regulation is an ongoing process, as per the new actions taken by the NDA government
• Two sets of amendments were released in August 2014 and May 2015
• A committee has been tasked with identifying more amendments to the Act and involving recommendations and concerns from private sector stakeholders and regulatory bodies
• India’s score increased in 3 of 6 indices of the protecting minority investors indicator set
• To simplify administrative requirements, the minimum paid in capital was abolished
• For instilling greater transparency, disclosure requirements especially in relation to related party transactions were initiated
• Bringing Indian firms in line with global standards, the Act increased disclosure requirements, particularly related party transactions
• India also became the first economy in the world with a quantified and legislated corporate social responsibility requirement
• Full fledged reforms can give policymakers the opportunity to innovate and sends a strong signal to the business community, the report said.

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