A Leap Forward in Indian Corporate Governance
“Corporate Governance” this has become the most common word these days in the business world. After the Satyam misappropriation case CG is being taken even more seriously than ever before. Investors are demanding even more clarity and greater transparency in company affairs. A lot on corporate governance is talked in India but not much has been taken care off. Much of the reason lies with the Indian investors not being as demanding as they should be. The best evaluator to any company is the market, it values the firm in long term, it punishes the management for every bad decisions taken and also rewards when they do things right. SEBI has issued many directives and mandates to enforce corporate governance but the structural weakness lies in the investor education and financial awareness level in individual investors who don’t understand the power of their voting rights giving incumbent managers take adva ntage of them. With the rise in institutional investors companies are forced to be...