Ease of Doing Business 2019: India has improved significantly in the last two years but is still at 77th rank, with many areas lagging behind in creating ease of doing business. However, there is one area where the country continues to be among top 10 nations — even as it witnessed a slip of three ranks this year.
Protecting Minority Investors is one of the 10 parameters of the World Bank for evaluating 190-nation Ease of Doing Business where India has left 183 nations behind this year. The parameter takes into three dimensions of investor protection: transparency of transactions, liability for self-dealing, shareholders’ ability to sue officers and directors for misconduct.
Also Read – Ease of Doing Business: Giant leap for India; to enter top 50, work on these areas, says Jaitley
How India has fared on ‘Protecting Minority Investors’ index:
Rank 7 (down from 4 last year)
Sub-index Score
Extent of disclosure 8
Extent of director liability index 7
Ease of shareholder suits 7
Countries that have greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection perform well on this index.