Airawat Indices, a joint venture firm founded by former SEBI Chairman M Damodaran and Decimal Point Analytics, has launched a new index ATOM (Airawat Touchstone MidCap Index), comprising 30 mid-cap companies listed on stock exchanges.
ATOM is a thematic index designed to serve investors seeking to invest in “well-governed mid-cap companies,” the company said in a release.
The joint venture has selected these 30 mid-cap companies from the Association of Mutual Funds in India list of 150 mid-cap stocks as the starting point of its scoring methodology.
Airawat Indices is also working on to launch an Universal Mid-Cap Index and Laggard Mid-cap Index. While Universal Mid-cap index will comprise all listed mid-cap companies in India, Laggard index will have bottom 30 mid-cap companies based on financial and governance parameters.
Governance, an investment
Businesses built on a foundation of strong corporate governance principles and practices are far more likely to tide over adverse economic conditions. The financial crisis of 2008, leading to the decline and fall of several large institutions, resulted in corporate governance being at the centre of attention of institutional investors, said the company.
There is increasing recognition that governance is an investment, and not an item of cost. There is overwhelming evidence to show that institutional investors are attaching considerable importance to the practice of corporate governance by existing and potential investee companies, it said.