India has scored a 'perfect 10' in terms of protecting shareholders' rights, even as advanced economies like the US, UK, Singapore and New Zealand have failed to get this top-billing in the World Bank's latest 'Ease of Doing Business' 2018 report. While India has been ranked 100th overall in terms of protecting minority investors, it has got a much higher 4th position for protecting minority investors, which officials attributed to several reforms undertaken by the SEBI.
Within the area of 'protecting minority investors', India scored 10/10 for protection of shareholders' rights -- as against 4/10 for the US, 5/10 for Australia, 7/10 each for the UK, Singapore and New Zealand. The top five countries -- New Zealand, Singapore, Denmark, South Korea and Hong Kong and -- in the ease of doing business index have scored in the range of 6 to 7 in the area of protecting rights of shareholders.
Other areas, which are part of 'protecting minority investors' are corporate transparency, disclosure and ownership and control, director liability and shareholder suits. India has scored 8 each on corporate transparency, disclosure and ownership and control parameters and a 7 each on director liability and shareholder suits. "India strengthened minority investor protections by increasing the remedies available in cases of prejudicial transactions between interested parties. This reform applies to both Delhi and Mumbai," the report noted.