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Document details - Corporate Governance in India: Clause 49 of the Listing Agreement

Journal Volume 11, Issue 2, February 2022, Article 17063371 Dr Arijit Sen , " Corporate Governance in India: Clause 49 of the Listing Agreement" , International Journal of Application or Innovation in Engineering & Management (IJAIEM) , Volume 11, Issue 2, February 2022 , pp. 014-019 , ISSN 2319 - 4847.

Corporate Governance in India: Clause 49 of the Listing Agreement

    Dr Arijit Sen


In the wake of the biggest financial scandal (the Satyam scam case) in India and in the context of the global financial crisis, the term corporate governance (CG) has become a topic of hot debate. CG has been gaining momentum across the world due to unethical business practices and insufficient disclosures. Inequality, glorification of greed, lack of concern for society, feudal mindset and manifold regulations are some reasons responsible for increase in the rate of scams. The issue is particularly important for developing country like India since it is central to financial and economic development. India has one of the best CG laws but poor implementation together with socialistic policies of the pre-reform era has affected CG. Concentrated ownership of shares, pyramiding and tunneling of funds among group companies mark the Indian corporate landscape. Since liberalization, however, serious efforts have been made at overhauling the system with the Securities & Exchange Board of India (SEBI) instituting the Clause 49 of the Listing Agreements dealing with corporate governance. In India, it is mandatory for all the listed companies to comply with the revised Clause 49 of listing agreement, which came into operation on January 1, 2006 to protect the interests of investors through enhanced governance practices. This study seeks to determine the extent to which Indian listed companies disclose their CG practices by examining the annual reports of 50 listed companies. Also, the determinants of disclosures have been looked into. The paper concludes that there is a substantial scope for improvement in the CG disclosure practices and the size of the company is a significant determinant of disclosures.

  • ISSN: 23194847
  • Source Type: Journal
  • Original language: English

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