MANAGING AGENCY SYSTEM: THE GENESIS OF THE ERA OF MODERN BUSINESS FINANCE IN INDIA

S. DAS^1
1Department of Commerce, University of Kalyani, Kalyani- 741 235, WB, India.

Received : 04-01-2014     Accepted : 27-03-2014     Published : 30-07-2014
Volume : 2     Issue : 1       Pages : 17 - 21
Bioinfo Bus Econ 2.1 (2014):17-21

Keywords : Managing agency, Industrial finance, India, Risk capital, Companies Act.
Conflict of Interest : None declared

The managing agency system was the pioneering and the most important thing that happened to the financing and management of the business organizations in India that could keep its existence and relevance very vital in the Indian business scenario for over a century. Setting up of a variety of financial institutions for providing financial support to the corporate sector and the development of capital market since the early 1950s and some other factors gradually limited the horizon of operation of managing agents as the financiers of corporate sector and the system consequently died a natural death. Yet, their role in the industrial finance scenario in India can never be ignored. In this backdrop the paper makes an attempt to focus on the evolution and growth of the managing agency system and its role in the industrial finance scenario in India.