Institutions also have to keep the small investors' interests in mind the IDBI executive director said. Despite having long-term investment perspectives, institutions can not continue to hold a stake in companies run by weak managements, Narasimham said.

To protect their interests, institutions are forced to support aggressive managements rather than good ones. Without referring to any company or management Narasimham said that besides maintaining a good performance, managements of companies must also be competitive in taking on global players.