Corporate Governance: Practice in India and Role of Securities and Exchange Board of India
Author : Dr. Manjulaben Gordhanbhai Patel
Abstract :
Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distributions of rights and responsibilities among different participants in the corporations, such as, the board, managers, shareholders and the others stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. Increasing reliance of the corporate sector on the capital sector on the capital market for their capital requirements of globalizations of Indian equity, etc. The first issue that needs attention in this context is to avoid over regulations Duplication in exercise of regulatory powers needs to be avoided. Presently, an identical issue, regulatory powers are being exercised both by the MCA & by SEBI (in regard to listed companies) in many respect, SEBI has conferred upon itself powers which are different from those available to the government under the companies Act. Likewise, certain requirement under the companies Act have not been incorporated in Clause 49. There is pressing need of coordination between MCA & SEBI in regards to matter relating to corporate governance and what is regulated by the companies Act should not be done again by the SEBI. SEBI should publish its annual report regarding corporate governance.
Keywords :
Bond, shareholders, stakeholders, capital market
