Corporate Governance Laws And Regulation In India

Abstract

Corporate Governance may be construed as a system and processes through which the behaviour of a company is monitored and controlled. Since past few decades Corporate Governance is gaining a lot of importance across the world. It is about promoting corporate fairness, transparency and accountability. In other words, ‘good corporate governance’ is simply ‘good businesses. The establishment of SEBI a regulatory body has played a significant role in establishing nouns for corporate governance in India. There are four more major financial regulatory bodies in India. Among these three are Statutory Bodies created through parliamentary enactments and two are part of the Ministries of the Government of India.

Over the years, SEBI constituted two committees to make recommendations relating to corporate governance in India, under the chairman ship of Kumar Mangalam Birla and Narayana Murthy. Further, the MCA had appointed the J.J. Irani Committee in 2004 to review the international best practices in corporate governance, in light of the growing needs of the Indian economy and corporate. The recommendations of these committees form the bedrock of the legal regime for corporate governance in India. This paper discusses about the rapidly increasing economic growth that corporate India witnessed since 1990s brought to the forefront, the need for Indian companies to adopt corporate governance practices and standards, which are consistent with international principles. This paper attempted to provide a broad overview of the regulatory framework governing corporate governance and the various financial regulatory bodies in India.