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Corporate Governance in India & Sebi Regulations: Presented by
Corporate Governance in India & Sebi Regulations: Presented by
Corporate Governance in India & Sebi Regulations: Presented by
In India
&
Sebi Regulations
Presented By
Akant Jain
2013MBA003
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INdex
Corporate Governance
Corporate Governance Norms
Corporate Governance In India
Securities Exchange Board Of India
SEBI Clause For Corporate Governance In
India
Conclusion
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Introduction
The last few years have seen some major scams
and corporate collapse across the globe.
In India, the major example is Satyam which is
one of the largest IT companies in India.
All these events have caused the pendulum of
public faith to shift away from free market to a
more closely regulated one.
So before delving further on the subject it is
important to
define the concept of corporate governance
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SEBI
On April 12, 1988, the Securities and Exchange Board
of India (SEBI)was established with a dual objective of
protecting the rights of small investors and regulating
and developing the stock markets in India.
In 1992, the BSE ,the leading stock exchange in
India, witnessed the first major scam masterminded by
Harshad Mehta.
Analysts felt that if more powers had been given to
SEBI,the scam would not have happened.
As a result the GoI brought in a separate legislation
by the name of SEBI Act 1992and conferred statutory
powers to it.
Since then, SEBI had introduced several stock market9
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Clause 49..
4.Audit Committee----Financial statements and the draft audit report of
management discussion and analysis of
Financial condition
Result of operations of compliance with laws
Risk management letters
Letters of weaknesses in internal controls issued by statutory
Internal auditors
Removal and terms of remuneration of the chief internal auditor
5.Whistleblower Policy ----This policy has to be communicated to all
employees and whistleblowers should be protected from unfair treatment
and termination.
6.Subsidiary Companies-----50% non-executive directors & 1/3 &
independent directors depending on whether the chairman is nonexecutive or executive.
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Conclusion
As Indian companies compete globally for access to capital markets,
many are finding that the ability to benchmark against world-class
organizations is essential.
For a long time, India was a managed, protected economy with the
corporate sector operating in an insular fashion.
But as restrictions have eased, Indian corporations are emerging on the
world stage and discovering that the old ways of doing business are no
longer sufficient in such a fast-paced global environment.
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