India business insights

India business insights - October 2017

Anuj Chande Anuj Chande

Welcome to the autumn 2017 edition of India business insights, in association with the London Stock Exchange.

In the face of a number of corporate governance failures, Indian companies need to demonstrate a relentless focus on this as they grow. In this issue, we look at the Securities Exchange Board of India’s (SEBI) guidance on evaluating board effectiveness and how this should be central to good governance.

We also look at how the Indian economy is performing currently and provide an analysis of the latest M&A activity, highlighting the big transactions making the news.

Are Indian company boards fit for purpose?

Evaluating the effectiveness of the board should be central to a company’s governance, rather than merely a tick-box exercise. New guidelines from the Securities Exchange Board of India (SEBI) are useful for boards that want to conduct evaluations not just in the letter, but in the spirit of the law.

Slower growth in Indian economy as trade weakens

The latest Indian GDP figures show that growth slowed in Q2 2017, with a significant weakening in the balance of trade. However, higher domestic and foreign direct investment (FDI) boosted by government reforms are expected to help get the economy back on track.

Big ticket consolidation driving growth in Indian private equity and M&A deals

Despite a slowdown in activity in Q3, corporate corporate deal-making in India is at its highest level since 2007, with transactions worth nearly USD50 billion in the year to date, driven by consolidation in a number of markets and continued interest from strategic and financial investors.

For further information please contact Anuj Chande, Head of the South Asia Group.