Now trending: Board-managed companies

The board will take on a more complex role and its skill set will see an overhaul

Institutional ownership of the S&P BSE 500 companies has been steadily increasing. But there is another discernible shift within, regarding governance of companies, that is taking place: The number of companies that are both institutionally owned and board-managed is starting to increase rapidly. This will have far-reaching consequences for the market. 

Data on institutional ownership (foreign institutional investors, domestic institutional investors and other institutions), widely tracked, show institutional ownership at 37.9 per cent in March 2017, up from 31 per cent in March 2001 and a low of 29.2 per cent in December 2008. The second set of companies — board-managed