September 1, 2015
Disclosure in India: Mandatory vs. Voluntary Communication
This first edition of FTI’s India Disclosure Index is produced from publicly available information on common practices and recent trends in disclosure among leading publicly-listed companies in India. Legal standards for disclosure have historically been weak, leading Indian companies to disclose as little as possible with the belief that transparency may provide fuel to competitors rather than potential investors. Recently, however, with the introduction of an amended Clause 49 in the Equality Listing Agreement that calls for board-level supervision for ‘disclosure and communications,’ there has been a call for stronger disclosure standards, even when not mandatory.
FTI Consulting has explored these trends by creating a Composite Disclosure scoring system that, using six Mandatory Disclosure parameters and five Voluntary Disclosure parameters, provides a thorough analysis of the disclosure behavior amongst India’s leading 100 companies. The full report supplies valuable takeaways, best practices and recent trends in disclosure for the boards of companies grappling with how valuable—or detrimental– transparency may be.