Regulators and shareholders are no longer willing to look the other way, with more global, complex, volatile and competitive business. Yes BankNSE 0.22 %, Sun PharmaNSE 1.50 %, IL&FS and Fortis Healthcare were among those that came under the corporate governance scanner in recent times. Shareholder activism, new regulations, whistleblowers and social media have ensured that companies improve governance or face market value erosion and regulatory action, experts said, adding that the trend is set to continue in 2019.“Indian markets have a lot to catch up with the western world in following regulations in letter and spirit,” said Nilesh Shah, managing director, Kotak AMC. “Globally, environment, social and governance (ESG) standards are becoming part and parcel of investment process. In India, we haven’t talked about them yet, even though these standards are necessary to improve governance.”

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The Economic Times