Thursday, 12 March 2020

Corporate Governance in Indian Scenario

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Corporate Governance in Indian Scenario


India is now implementing important corporate governance reforms that position the
country's corporate governance framework as above average compared to other emerging
market economies.
The corporate governance framework in India includes Securities and Exchange Board of
India, Company Law and Accounting and Indian Company Acts, CII code on corporate
governance, National Code on Corporate Governance, and Clause 49.


Board Committees: Board committees are an aid to assist the board and its directors in discharging
their duties and responsibilities.
CII: Confederation of Indian Industries
Clause 49: It is under Listing Agreement of Stock Exchanges. Clause 49 has been prepared by the
Securities and Exchange Board of India (SEBI).
13.6 Self Assessment
State whether the following statements are true or false:
1. SEBI established in 1988 and became a fully autonomous body by the year 1992.
2. Private companies can enjoy the right to transfer shares.
3. The Department of Company Affairs (DCA) has amended the Companies Act, 1956 several
times in recent years to improve corporate governance and modernise India's company
law.
4. India has 22 stock exchanges.
5. Companies can be divided into public and private companies only, according to Indian
Companies Act.
6. The stock exchange is required to file a compliance report with SEBI for each listed company
for each quarter.
7. The Board of Directors of every company is required to present the company's financial
statements to the shareholders at every Annual General Meeting.
8. Clause 49 has been prepared by the Reserve Bank of India.
9. Department of Company Affairs suggested the setting up of a Centre for Corporate
Excellence.
10. National Code of Corporate Governance led to changes in the stock exchange listing
rules.

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