Proxy advisory movement likely to emerge stronger from ITC case

Reaction underlines increasing importance of the industry, says Subramanian of Ingovern

The fledgling proxy advisory sector is facing its first major challenge with consumer goods major ITC slapping a Rs 1,000-crore defamation suit on Institutional Investor Advisory Services (IiAS). But, individual firms and their consumers -- largely institutional investors -- are confident that the industry would emerge stronger after this episode. There are also calls for the regulators and large institutional investors to support these advisory firms.  

While IiAS executives were not available for comment, Shriram Subramanian, founder of Ingovern Research Services, another sebi registered proxy firm, said, "This only shows the increasing influence of proxy advisory firms that companies