Briefly comment on the following statements : (v) Institutional investors have a crucial role to play in ensuring good corporate governance.

Most of the reports on corporate governance have emphasized on the role of institutional investors in promoting good corporate governance. The Kumar Mangalam Birla committee on corporate governance emphasizes that the institutional shareholders can play effective role in the corporate governance system of a company because of following reasons- Institutional shareholders have acquired a large stake in equity share capital of listed companies. They have a special responsibility given the weightage of their votes and have a bigger role to play in corporate governance as retail investors look upon them for positive use of their voting rights.