IFC and BSE Launch Scorecard Tool to Promote Governance Improvements in India
Mumbai, India, December 2, 2016—IFC, a member of the World Bank Group, and BSE, Asia’s oldest exchange, have developed a unique Corporate Governance Scorecard tool. A first-of- its-kind initiative, the tool will aid companies in identifying areas of improvement against generally accepted good practices and promote effective decision making, risk management and governance structures.
The Scorecard was finalized through a process of in-depth review and public consultation with key stakeholders. The tool was used to assess the top 30 companies on the BSE. The final methodology with detailed questionnaire and the assessment report was unveiled here today.
The Scorecard will help companies measure their corporate governance practices against local regulations and international benchmarks. Institutional Investor Advisory Services, an Indian advisory firm that provides independent opinion, research and data on corporate governance issues, was the technical partner responsible for drafting the Scorecard questionnaire and methodology.
“The launch of this Scorecard will help companies to go the extra mile beyond compliance and surpass global standards,” said Ashish Chauhan, MD & CEO, BSE Ltd. “We appreciate the technical expertise provided by our partners and believe that the tool is a revolutionary step towards significantly raising governance practices,” added Chauhan.
India has been consistently raising the bar for implementation of good Corporate Governance practices. The Scorecard aims to encourage implementation of standards to generate incentives for reform, help direct change and ensure a process of continual improvement. It can also be used by a wide range of stakeholders including regulators, promoters and investors.
“The Scorecard will encourage Indian companies to strengthen corporate governance practices, which will enable easier access to capital from global markets, improve transparency and enhance investor confidence,” said Jun Zhang, Country Manager for IFC India. “We hope that the Scorecard will help companies approach governance as a principle-driven exercise and adopt best practices,” Zhang added.
Globally, IFC’s work on corporate governance has resulted in adoption of 95 laws, regulations and codes. In South Asia, IFC is implementing a 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, globally. IFC’s committed portfolio in India is over $ 5 billion as of June 30, 2016. In FY16, IFC committed $ 1.1 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 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About BSE
BSE (Formerly Bombay Stock Exchange), established in 1875, is Asia’s first & now the world’s fastest Stock Exchange. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing. BSE also has a dedicated platform for trading in equities of small and medium enterprises.