Corporate Governance

Corporate Governance in India : Post- Satyam the way ahead: What needs to be done ?

TITLE : Corporate Governance in India : Post – Satyam the way ahead : What needs to be done?

Abstract

Corporate governance has been a topic of hot debate in developed countries like U.K. & U.S.A. for the last two decades. With the opening up of economies, it has also been a concern for developing country like India. This is because opening up of economies has changed the scenario of Indian market i.e. on one hand, it has made the world market accessible to the Indian corporates & on the other hand, it has increased competition in the domestic market with the advent of the multinational companies. In this changed scenario, the quality of governance has been an important factor not only for survival of the companies but also for influencing the company’s ability to raise money from capital market. Again corporate governance is important in Indian context because of the scams that occurred since liberalisation from 1991, for e.g. the UTI scam, Ketan Parekh scam , Harshad Mehta scam, & the latest Satyam Fraud case.

In this paper, we will look into the historical background of corporate governance in India, recent developments in corporate governance in India till date, issues related with respect to corporate governance in India . We will also look into the latest & the biggest scam that had occurred with respect to corporate governance i.e. The Satyam Fraud Case & will try to suggest some solutions so that such frauds does not occur in the near future.

1.0 INTRODUCTION :

The term ‘Corporate Governance’ has become a buzzword worldwide. According to Vittal, N., this is because of two reasons. First is ,that after the collapse of Soviet Union & the end of cold war in 1990 the concept of government...