How ethically private equity firms operate in India


Very few private equity firms in India have got a code of ethics which has been documented formally. However, most of them feel that they always retain a code of conduct while performing their business and have very high ethical standards about which the media is biased against them.



Private Equity Firm in India is on a more defensive state than it was ever before. There are a lot of controversy surrounding the transparency of their tax returns and even returns from their investment in the past few years. The leftwing media believes that not enough is being done about this to maintain a complete state of disclosure between people and firms. The media is completely hanging on to their claim that private equity firms are ought to pay more taxes than they are doing at the current stage. 

A voluntary code of conduct is under process to be developed by the industry which shall be followed unanimously followed all around by all the firms. In a survey conducted among the firms for their belief in ethical values and honor for the code, 73 percent of the people came to be in support of it and believe that their firm follows the business in moral and legal boundaries. All private equity firms are supposed to be under a common code and there should not be any exceptions to benefit the future of the industry.
     
Most of the firms believe that their image is being tampered by media as they are progressing at a quick pace and according to common understanding this cannot be done in a morally correct way. Those who participated in the survey, less then a quarter of them said that the ethical standards may lie in a gray area while a small percentage was totally against the existence of any moral boundaries. Private equity in India have been more in the question as it has been depicted as a shady area of business for long.

Private equity firms in India strongly believe that there has to be some exception in an industry where the firms should not be in the question box just because of the significant progress in a small time. There has to be transparency and disclosure of records and the clients and government should be fully aware of it. No accusations should be made based on poor speculations. There are a few buyout firms who give the industry a bad image but a rotten apple spoils the whole basket should not be the case anymore. The private equity firms are trying to bring a good business to country and they should be encouraged till the time they operate in the legal boundaries.  


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