Background

How to Participate?

Effective board performance is critical in creating a strong corporate governance framework. The Ministry of Corporate Affairs, CII and a variety of other regulators and business associations have recommended guidelines for effective board management, yet our data shows that less than 1% of the BSE 500 companies conduct any form of evaluation of how effectively the board is performing. This compares rather unfavorably against global standards, e.g. more than 90% in the FTSE 350 conduct annual board performance evaluations.

This study, the first of its kind, will evaluate and identify Indian companies where the Boards are providing effective and ethical governance. This study will also create a framework which boards can use to determine their own effectiveness and benchmark with best governed companies.

Study Approach

The study, which is being jointly led by Mint and Aon Hewitt, a leading global HR advisory firm will focus on only listed companies this year. The study will be executed through the following core phases:

Phase I:	Definition of a study advisory panel/jury. The panel will be composed of 6 – 7 members and will include representatives from SEBI/BSE/NSE, and prominent independent directors, and will be facilitated by Mint and Aon Hewitt.
Phase II:	Identification of the universe of companies that will be covered in this study. We currently believe that the universe will be composed of companies in the BSE 100, BSE Small Cap and BSE Mid Cap list.
Phase III:	Preparation of a shortlist from the universe of companies basis the following parameters Relative TSR (total shareholder returns) performance over the last five years Any legal pronouncement for violations by the company in the same period
Phase IV:	Invitation to the firms thus shortlisted for participation in this Study
Phase V:	Analysis of each participant on the following dimensions Sustained financial performance Effectiveness of board management – constitution, charter, administration etc (Through analysis of board documentation) Self assessment of the board on its functioning (Through questionnaires) Evaluation of effectiveness of the board interactions and ability of the board to work as a team
Phase VI:	Review of results by the jury and creation of a shortlist of about 20 – 25 companies which display the strong board governance standards.
Phase VII:	Announcement of results. Companies will not be ranked but would simply be clustered as top 25 best managed boards.

Supported by

BSE INDIA
Established first in 1875 as "The Native Share & Stock Brokers' Association", BSE Limited is the oldest stock exchange in Asia. Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient capital raising platform. Today, BSE is the number one exchange in the world in terms of the number of listed companies (over 4900) and the 5th most active in terms of number of transactions handled through its electronic trading system. The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index. For more go to www.bseindia.com

SEBI
The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992 “to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto". For more go to www.sebi.gov.in

NSE
The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was promoted by leading financial institutions and was incorporated in November 1992 to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. For more go to www.nseindia.com