India remains a popular emerging market for investors, with listed companies in sectors such as financial services, technology and manufacturing. EOS has been engaging with Indian companies, policymakers and standard-setters for over a decade, and in recent years they have seen improvements in certain governance areas.

However, there are some specific stewardship challenges within the Indian market that minority shareholders need to navigate to ensure that their own rights are protected. A high proportion of Indian companies are still family-owned and led by promoters, a term unique to India, which refers to individuals with direct or indirect control over a company.

In some cases, family members and promoters who are interested in ensuring sustained growth may foster a long-term focus, which can be well-aligned with minority shareholder interests. However, there is increasing scrutiny over related party transactions, which can give rise to potential conflicts of interest and executive remuneration. Here there is scope to increase transparency, introduce more objectivity into decision-making and establish pay structures that properly incentivise delivery on long-term strategy.

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