Abstract
The present paper contributes to the understanding of impact of corporate scams and scandals and understanding the reason how these frauds and white-collar crimes impact the investors trust and business environment as a whole. When these scams occur the trust of investors break with each and every turnout. The impact of such corporate scams is not limited to the company where it took place but to each and every business, be it big corporate units or it be some small-scale businesses by directly impacting the stock exchange where the shares are listed. The authors have also tried to focus upon the issues and problems faced by the investors of the company while the company got involved in corporate scams and to figure out the responsible person of the company who will be held accountable in such kind of cases. The present study is limited to the extent of personal liability of a Director and too specifically in the cases of fraud and insolvency. White collar crimes are everywhere these days and that need to be treated as a growing branch of the Criminal law in India. With increase in the Globalization companies are growing and along with it the stakeholders of the company are also growing, any scam done will step back the investors to invest again and more in the company. Thereby with increase in the market share of a company the director of the Company has to establish an internal mechanism to tackle various white -collar crimes nurtured and how these are dealt in the court of law.
Highlights
India has seen many financial scams and all these financial scams directly breaks the faith of the investors such kind of cases should be assessed in a stricter manner so that we could prevent breach of trust done by the directors while acting on behalf of the companies with various investors.Present study contributes to the understanding of impact of various corporate scams and investors fraud and analyse the reason how these frauds and white-collar crimes impact the investors trust and business environment on whole
SEBI plays regulatory role as well as well as role of reviving the rules in an aim to plug the loopholes in the security market
There is a rise in these white-collar crimes due to boost in the corporate sector in the past few decades and till date there are approximately more than 250 corporate scams taken place since Independence of India and nearly rupees 910,306,234,300,000 which is equal to 20.23 Trillion US Dollar has been lost.[2]
Summary
India has seen many financial scams and all these financial scams directly breaks the faith of the investors such kind of cases should be assessed in a stricter manner so that we could prevent breach of trust done by the directors while acting on behalf of the companies with various investors. Present study contributes to the understanding of impact of various corporate scams and investors fraud and analyse the reason how these frauds and white-collar crimes impact the investors trust and business environment on whole. The leader of the said corporate unit are intensively looked upon and questioned and were investigated as per their responsibility and liability against any such event occurred in the said corporate unit Various such responsibilities and liabilities are mentioned in companies Act 2013 and Rules issued by other regulatory bodies and is interpreted by the court of law from time to time
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
