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ARTICLE · 05 SEPTEMBER 2025

Boardroom Dynamics: Observer vs. Director In India's Evolving PE/VC Landscape

Corporate Professionals - Advisors & Advocates
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The Private Equity (PE) and Venture Capital (VC) market in India has experienced significant growth in the recent past, with investments reaching USD 43 billion in 2024.

IndiaCorporate/Commercial Law
Ravi Prakash
Ravi Prakash
Varun Litoriya
Varun Litoriya
Arjav Khurkhuriya
Arjav Khurkhuriya
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I. The Governance Quandary

The Private Equity (PE) and Venture Capital (VC) market in India has experienced significant growth in the recent past, with investments reaching USD 43 billion in 2024. As investment activity within the PE/VC market increases, investors have become cautious in protecting their interests and money, ensuring better oversight over their investee companies. This foresighted approach has given rise to two key roles that an investor may like to have in investee companies: the Board Director or the Board Observer.

  1. Board Director: A Board director is a member appointed to the Board of Directors of a company with voting rights, who directly influences the decisions and operations of a company.

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