Bad-Governance Stocks Have Indian Investors on the Run: Chart

Corporate governance lapses are the common thread running through some of the biggest decliners on a gauge of India’s 500 biggest companies. The bottom five of the 10 biggest losers in the index on average lost more than half their value in the June quarter amid issues ranging from auditor exits to inadequate disclosures. The slump serves to remind investors that the downside risk of poor governance standards is high, said Amit Tandon, managing director at Institutional Investor Advisory Services in Mumbai.