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VOL. 11, ISSUE 8 (2025)
The role of foreign institutional investors in promoting corporate governance in Indian Listed Companies
Authors
Pawan Kumar, Dr. Deepak Kumar
Abstract
Corporate governance refers to the system of rules, practices and
processes by which a company is directed and controlled. It plays an integral
role in ensuring transparency, accountability and ethical decision making
within companies. In recent years, numerous corporate scandals have highlighted
the need for strong corporate governance systems. This paper aims to
investigate the role of Foreign Institutional Investors (FIIs) in promoting
corporate governance in Indian listed companies. FIIs are institutional
investors from foreign countries who invest in Indian securities markets. They
hold substantial stakes in many Indian listed companies and play a significant
role as minority shareholders. As per SEBI regulations, FIIs are required to
comply with stringent guidelines and disclosures regarding their shareholdings.
These regulations have led to increased scrutiny and participation of FIIs in
matters concerning corporate governance. The presence of FIIs has positively
influenced corporate governance practices in India through various mechanisms
such as proxy voting, engagement with company management and filing shareholder
resolutions on critical issues like remuneration policies, related party
transactions etc.
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Pages:128-131
How to cite this article:
Pawan Kumar, Dr. Deepak Kumar "The role of foreign institutional investors in promoting corporate governance in Indian Listed Companies". International Journal of Commerce and Management Research, Vol 11, Issue 8, 2025, Pages 128-131
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