CORPORATE GOVERNANCE IN INDIA: SEBI REGULATIONS AND THEIR EFFECTIVENESS

Corporate Governance has become one of the most significant pillars of modern corporate law and financial regulation in India. It refers to the system by which companies are directed and controlled. According to the World Bank, Corporate governance is the relationship between a company’s management, board of directors, shareholders, and other stakeholders. In India, corporate governance has gained considerable importance due to globalization, the expansion of capital markets post-economic reforms of 1991, and the growth of the securities market. The need for strong corporate governance became evident after major corporate scandals, which exposed serious weaknesses in the system. Subsequently, SEBI introduced various reforms aimed at improving corporate governance and ensuring ethical corporate conduct. This blog examines the evolution of corporate governance in India, important SEBI regulations related to corporate governance, their effectiveness, and existing challenges in the Indian legal system.