Test case for India's proxy advisory firms

The idea is to enhance corporate governance and empower minority shareholders

The still nascent proxy advisory sector in India is set to face its toughest test with the recent Rs 1,000 crore legal suit filed by ITC in the Calcutta High Court against Institutional Investor Advisory Services (IiAS) over allegations of defamatory statements. However, some still see a silver lining to the development. According to Shriram Subramanian, founder and managing director, InGovern Research Services, the lawsuit only represents the increasing influence of proxy advisory firms in India. While some experts have questioned the intent of the exercise, others have been critical of the wide scope of India's defamation laws. 

Alok Prasanna Kumar,