A striking feature about the ownership structure of Indian firms is the very high promoter stake. For example, the average promoter holding among publicly traded Indian firms in 2015-16 is 55.6%. The median number is closer to 58%. That means that in half to two-thirds of all publicly traded Indian firms, the majority ownership is held by promoters. The average insider holding among the largest firms from 22 countries in Asia and Europe, excluding India, was at 18.75%.A simple and proximate cause is the need for insiders to control their firm. Indian promoters feel that owning close to half or more of the shares is the easiest way for them to retain control. They feel a lower-share ownership may leave them open to the possibility of losing control to an outsider. The most important consequence is the insider’s reluctance to raise outside equity. Insiders feel that raising too much outside equity will dilute their stake and loosen their grip over their firm. This aversion to outside equity, in turn, translates into a love for borrowed money. This love for debt finance can bring down whole economies.