Empowering Ethical Investment: The Role of ICSI's Stewardship Principles

The Institute of Company Secretaries of India (ICSI) advocates for its Governance Principles on Stewardship (IGPS) to ensure ethical and responsible investing. This initiative is crucial amidst the growing trend of companies raising funds via IPOs, totaling Rs 1.76 lakh crore, to bolster long-term value creation.

The apex body for Company Secretaries, ICSI, has highlighted the importance of its Governance Principles on Stewardship as a guiding framework encouraging ethical and responsible investment practices among institutional investors. This initiative seeks to enhance long-term value in light of the increasing number of companies opting for IPOs.

This year alone, companies have raised an impressive Rs 1.76 lakh crore through initial public offerings, reflecting a significant shift towards public fundraising. The ICSI states that its principles aim to mitigate the risks of short-termism in capital markets.

Effective stewardship, particularly in a rapidly evolving investment environment, is essential. ICSI Secretary Asish Mohan emphasizes the adoption of IGPS by institutional investors and governance professionals to reinforce corporate governance in India and ensure transparency and trust among retail investors.

(With inputs from agencies.)