Corporate Governance in India: Legal Framework, Challenges, And the Role of Regulatory Authorities

ABSTRACT

In this paper, corporate governance in India is thoroughly examined, including its historical development, the complex legal and regulatory environment, enduring difficulties, and the crucial role played by regulatory bodies. Examining the fundamental Companies Act, 2013, as well as the important rules imposed by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Ministry of Corporate Affairs (MCA), the research charts the development of corporations from antiquity to the present. It critically evaluates important issues, such as the independence of the board, the widespread influence of promoter dominance, the intricacies of related party transactions, and the changing nature of shareholder activism, all of which are supported by case studies of notable corporate governance fails. Along with a comparison with global best practices from the OECD, UK, and US frameworks, the paper assesses the concrete effects of governance changes on financial transparency, shareholder rights, and business performance. In order to provide insights into the future course of corporate governance in India, it concludes by examining new trends including the incorporation of Environmental, Social, and Governance (ESG) considerations and the revolutionary potential of digital technology.