Chapter 12 - International dimensions and corporate governance: the Indian perspective

Abstract

In India, despite a long corporate history the phrase corporate governance remained unknown until 1993. It came to the fore due to a spate of corporate scams and fraudulent practices during the first phase of economic liberalization in the early 1990s and thereafter in successive recurrence. Good governance is imperative for edge in competition and critical to economic and social progress. In an ever increasing globalize economy, firms need to tap domestic and international capital markets for investment, but capital providers have a choice and the quality of corporate governance is increasingly becoming a deciding factor for investment and lending. A new era of good corporate governance has been put in place with the enactment of the Companies (Amendment) Act, 2000. With the emphasis being on good corporate governance, the Companies (Amendment) Act 2000 aims to make the Indian corporate sector as a whole and its corporate bodies respected globally. In India, corporate governance is being observed and implemented in the spirit. The law and corporate have begun realizing that it is the observance and implementation of good corporate governance practices which will lead to corporate excellence.