A recent proposal to the Securities and Exchange Board to recognise daughters-in-law as ‘relatives’ within promoter groups—led by promoter families themselves—for disclosure and succession planning may signal an important shift in women’s roles in India’s family businesses. It may be finally acknowledged that women’s roles in business families can no longer remain informal, invisible or assumed.
This comes at a time when India’s family-managed businesses, contributing over 70 percent of the country’s GDP, are already undergoing change. For decades, they operated on an unspoken compact: ownership remained within the family, authority rested with patriarchs, and women, though central to the family, remained at the periphery—shaping values, resolving conflicts and preserving legacy, but rarely part of strategic decision-making.
That compact is beginning to loosen. Across the country, women from business families are increasingly stepping into visible leadership roles. Yet, to see this as merely a matter of regulatory inclusion, or of “giving women a seat at the table”, is to miss the deeper shift underway. Laws and regulations can redefine who is formally recognised, but they cannot, by themselves, determine who is truly trusted, heard or empowered. The real change lies not in structures or policies, but in mindsets—not just within firms, but within families, and critically, among women themselves.
The traditional architecture of Indian family firms reflected deeply gendered expectations. Sons were groomed to take over, while daughters—no matter how capable—were prepared for transition into other families. Women were often steered toward “safe” roles such as philanthropy, while core business decisions remained an inherited male privilege. That script is now being rewritten by three forces.
The first is education and exposure. Today’s daughters return to family businesses with global degrees, corporate experience and a strong sense of professional identity. They are not looking for token roles, but want to contribute meaningfully.
The second is legal change. The Hindu Succession (Amendment) Act, by granting daughters equal coparcenary rights, has altered the economic foundations of family enterprises. If Sebi recognises daughters-in-law as relatives, it would extend this logic further, recognising that women entering the family through marriage also play a role in ownership, governance and continuity.
The third is the market itself. Investors, partners and consumers increasingly expect professionalism, transparency and diversity. Family businesses that fail to tap into their full talent pool risk not just reputational costs, but competitive disadvantage.
Despite these structural shifts, progress remains uneven. The difference comes down to family mindsets. Business families that operate with a fixed mindset—where leadership is linked to gender, birth order or tradition—may formally recognise daughters or daughters-in-law, but not trust them fully. By contrast, families with a growth mindset see leadership as something that can be developed, demonstrated and earned, and evaluate successors on capability rather than convention.
Our recent research on women in family businesses reinforces this. Across contexts, what shapes women’s active involvement is not geography or industry, but the family’s mindset. Families with a fixed mindset tend to create subtle but powerful barriers, while those with a growth mindset enable women’s participation through three mechanisms: promoting meritocracy, involving women early in the business and fostering visible role models.
This is where the limits of regulation become evident. Sebi can recognise daughters-in-law as part of the promoter group, but it cannot ensure they are part of the decision-making group. That change depends on mindset.
Another crucial dimension is agency. Many women in family businesses still face a “legitimacy gap”, where they have to establish their authority repeatedly. Women who see themselves as decision-makers are better able to claim and exercise leadership. Combining agency with responsibility can enable women to move from being present to being influential.
Some family businesses are recognising this. Still, it would be unrealistic to suggest that the transition is complete. Access remains uneven, particularly outside large, urban families. Social expectations around marriage and caregiving continue to interrupt careers. And the pipeline of women ready for top roles remains limited not because of a lack of ability, but because of years of constrained opportunity.
To bring about meaningful change, intentionality has to be present—embedded in governance structures. Transparent criteria for entry, role clarity and performance evaluation can reduce ambiguity and bias. It also requires starting discussions about ownership, succession and leadership should include daughters and daughters-in-law from the outset. Families must also create real opportunities for women to lead, decide, take risks and be accountable. Without this, inclusion remains superficial. And finally, they must make role models visible. Celebrating women leaders within the family can shift attitudes far more effectively than a formal policy.
The rise of women in India’s family businesses is not just about breaking barriers. It is about rethinking long-held assumptions about how leadership is defined and what legitimacy looks like. Regulation can open the door. But it is mindset that determines who walks through it and who gets to stay.
Tulsi Jayakumar
Professor, economics & policy, and Executive Director, Centre for Family Business & Entrepreneurship, Bhavan’s SPJIMR
(Views are personal)