An overview of Corporate Governance Reforms in India

Corporate Governance Reforms in India got a kick start with the liberalization of the Indian Economy in 1991. Unlike the central governance issue in the western world which is essentially that of disciplining the management,the key focus of the corporate governance framework for India needs to be on disciplining the dominant shareholder. Given that the Indian corporate governance regulations have largely borrowed from the Anglo Saxon model of governance, it is not surprising that they do not provide an adequate solution to India s corporate governance woes. Adding to the problem arising from the application of an alien corporate governance model is also the problem of weak enforcement of corporate governance regulations through the Indian legal system which raises serious concerns on whether investors would be able to get timely dispensation of justice in case of corporate governance wrongdoings. Currently Corporate Governance Reforms in India are at crossroads; while there is no doubt about the good intention behind the reforms, there is a need to look for a complete solution, evolved from within, and to craft a solution for the specific challenges of India.