Vinit Bolinjkar, Head of Research, Ventura Securities, said it is high time that companies start recognising the rights of minority shareholders. The rights of minority shareholders need to be protected by independent directors but the problem currently is that many of them act on behalf of the promoters.
Deepak Sanchety, Ex-Head of Surveillance, SEBI, said even the funds and large institutional investors rarely spoke against promoters in the past. Even market regulator SEBI’s record has been nothing to write home about in the areas of open offers and corporate restructuring. “Minority shareholders taking lead on corporate governance is certainly a welcome change and the market as a whole will tremendously benefit from this,” said Sanchety.The rise of the minority shareholders – The Hindu BusinessLine