CORPORATE FRAUD IN INDIA: LEGAL CHALLENGES AND REGULATORY RESPONSES

Corporate fraud is a principal problem in India while hindering corporate governance and eroding fiscal stability. This article examines the various legal and regulatory frameworks surrounding corporate fraud in India. It puts emphasis on the Companies Act, 2013, Prevention of Money Laundering Act, 2002, the SEBI Act, 1992 among various acts that relate to corporate fraud. It identifies a variety of corporate frauds ranging from financial statements fraud, accounting frauds, banking frauds, insider trading, money laundering, bribery, and cyber frauds along with analyzing the causes of the frauds and difficulties encountered in the enforcement of the same. It also studies the role played by the regulatory bodies in India against corporate fraud. The conclusion arrived at is that despite having an established legal framework against corporate fraud in India, there is a need for better institutional coordination, technology, enforcement and corporate governance for achieving accountability.