Corporate Governance in India: Structure and Practice Analysis
Purpose - Corporate governance is about encouraging openness, accountability and corporate disclosure.
The corporate governance framework defines the assignment of rights and obligations among various
corporate members such as executive boards, directors, shareholders and other parties concerned and
describes corporate decision-making rules and procedures. By doing this, it offers the framework by
which the goals of the organisation are set along with the means to achieve these goals as well as to track
results. Corporate governance practises apply to the laws for the effective management of companies.
This document includes a detailed analysis of the Indian corporate governance system and practises. The
paper starts with a presentation of India's corporate management history and explores the journey for
almost two decades.
Design/methodology/ approach- The diagnostic study analyses corporate governance structure and
practices in detail through major regulatory changes, regulatory review mechanism(s), established
standards and initiatives taken by various core committees, groups and related bodies. It further evaluates
if, and to what extent, good governance is translating into value to various stakeholders of the company.
The paper attempts to identify gaps and outline the scope for improvement.
Findings - There is an extensive effort to strengthen the processes of corporate governance in India, but it
is evident that governance improves over time due to implemented policies and the general growth of the
economy. The activities of an organisation change as it adapts to evolving circumstances.
Originality/value This study provides a survey of the structure and practices of corporate governance
in India since its inception.