India Disclosure Index – How India’s Leading Listed Companies Fare on Mandatory & Voluntary Disclosure

BSE 100 Index Companies Score Low on Mandatory and Voluntary Disclosure

Mumbai, 21 April 2015 — FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organisations protect and enhance their enterprise value, today announced the launch of its India Disclosure Index, a report that tracks mandatory and voluntary disclosure practices amongst India’s leading publicly-listed corporations.

FTI Consulting reviewed publicly available disclosed information by leading publicly-listed companies in India to create a weighted, Composite Disclosure scoring system with six Mandatory Disclosure parameters and five Voluntary Disclosure parameters, and applied it to the Bombay Stock Exchange (“BSE”) 100 Index to create the India Disclosure Index. When scored on a composite scale of one to 10 (with a 10 score indicating that all 11 Mandatory Disclosure and Voluntary Disclosure parameters are publicly and readily available), the India Disclosure Index revealed that only 41 percent of constituent companies of the BSE 100 index were fully compliant on Mandatory Disclosure parameters. The report also revealed low levels of Voluntary Disclosure by Indian companies, with a median score of 3.5 out of a maximum of six and with most providing inadequate information relating to business strategy and debt. This is particularly concerning at a time when international institutional investors are demanding higher levels of voluntary disclosure from emerging market companies.

The low disclosure scores of the India Disclosure Index are a cause for concern in the context of the recently enacted Amended Clause 49 of the Securities and Exchange Board of India (“SEBI”) Listing Agreement, which places responsibility for ‘adequate disclosure and communications’ with the board of directors of India’s listed companies.

Key Highlights:

  • Average Composite Disclosure score ― 6.7/10
  • Median Mandatory Disclosure score ― 2.5/4
    • More than half of all BSE 100 index constituents have Mandatory Disclosure scores less than 2.5, reflecting poor mandated information disclosure.
    • Fifty-one percent of Indian companies did not provide analyst transcripts on websites.
  • Median Voluntary Disclosure score ― 3.5/6
    • A third of all BSE 100 index constituent companies have Voluntary Disclosure scores of three or less.
    • Sixty-eight percent of BSE 100 index constituents did not provide adequate information on debt-related information.
    • Fifty-seven percent of companies currently did not provide adequate strategy-related information on their corporate website.

Commenting on the launch of the India Disclosure Index, Amrit Singh Deo, Senior Director in the Strategic Communications segment of FTI Consulting, said, “We looked at disclosure in a holistic manner, covering voluntary as well as mandatory practices, to get an accurate picture of current practices amongst Indian companies. The low mandatory disclosure scores are surprising, but also something that can be easily fixed. The real challenge is to convince Indian boards and management teams that they need to go beyond mandated levels and disclose more information. At the heart of it, more disclosure and transparency are excellent proxies for better corporate governance.”

About the India Disclosure Index
The India Disclosure Index 2015 is a report of India’s leading companies by market capitalization, specifically those on the BSE 100 index, and their disclosure and financial communications practices, as assessed by 11 publicly available information disclosure parameters. The full methodology and ranking of the BSE 100 companies by their weighted disclosure scores (split by Mandatory and Voluntary Disclosure scores) can be found here:




The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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