ASSESSMENT OF CORPORATE GOVERNANCE FRAMEWORKS IN INDIAN STATE-OWNED ENTERPRISES

Abstract

SOEs are a crucial part of India's economic landscape, playing a vital role in various sectors. The governance frameworks within these entities are multifaceted, encompassing legislative provisions, regulatory directives, and oversight mechanisms. The Companies Act of 2013 lays down foundational principles, supplemented by guidelines from regulatory bodies like SEBI and DPE. Compliance with these frameworks is crucial for ensuring transparency, accountability, and ethical conduct within SOEs. However, Indian SOEs face challenges such as government interference in board decisions, lack of board autonomy, non-compliance with regulatory requirements, and the need to balance diverse stakeholder interests. These challenges often stem from the unique ownership structures of SOEs and their role in serving broader public policy objectives. Addressing these governance deficits requires concerted efforts from stakeholders, including the government, regulatory bodies, boards of directors, and management teams. Enhancing board independence, ensuring compliance with regulatory norms, and promoting transparency and accountability are essential steps towards strengthening corporate governance in Indian SOEs. Keywords: State-owned enterprises, corporate governance, India, Challenges, PSUs