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Submitted To:-Ms - Priya Singh Chauhan: Topic: - Analysis On Administrative Regulation On Corporate Finance in India

This document analyzes administrative regulations on corporate finance in India. It discusses key definitions of corporate governance, the need for corporate governance including sustaining market confidence and consumer protection. Some challenges in implementing corporate governance are multiplicity of regulations and lack of board transparency. The measures taken by the Government of India to promote corporate governance include harmonizing regulations between independent bodies. Limitations of the financial regulatory system include insufficient monitoring mechanisms and lack of effective financial disclosures.

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550 views10 pages

Submitted To:-Ms - Priya Singh Chauhan: Topic: - Analysis On Administrative Regulation On Corporate Finance in India

This document analyzes administrative regulations on corporate finance in India. It discusses key definitions of corporate governance, the need for corporate governance including sustaining market confidence and consumer protection. Some challenges in implementing corporate governance are multiplicity of regulations and lack of board transparency. The measures taken by the Government of India to promote corporate governance include harmonizing regulations between independent bodies. Limitations of the financial regulatory system include insufficient monitoring mechanisms and lack of effective financial disclosures.

Uploaded by

harsh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Topic:-

Analysis on administrative regulation on corporate finance in


India

Submitted to :-
Ms.Priya Singh Chauhan
Introduction
• Corporate Governance
Corporate Governance includes the policies and procedures, which is
usually adopted by a company in achieving its objectives in relation to
its shareholders, employees, customers and suppliers, regular
authorities and community at large. Corporate Governance usually
establishes a structural framework, which makes a healthy and
competitive company with self – clearing and competitiveness by
some strategies, transparency, motivation and social orientation.
Corporate Governance plays an integral part to the very existence of
a company/ organization/ Banking Sector/ Corporate Entity.
It inspires and strengthens investor’s confidence by insuring
company’s commitment to higher grow and profits
DEFINITIONS
• Wolfensohn , President of World Bank:- “Corporate
governance is about promoting corporate fairness,
transparency and accountability”.

• the journal of Finance Shleifer and vishny :-“Corporate


governance deals with the way in which supplier of finance
to corporation assure themselves of getting a return on
their investment”
NEED OF CORPORATE GOVERNANCE
• Corporate Governance provides proper attention towards weak
or improper supervision of banks which can have the
disproportionate effect of destabilizing a county’s economy and
indeed reducing market confidence.
• Sustaining confidence in the financial markets is one of the
most important objectives of regulatory bodies.
• Regulatory bodies need to ensure the most suitable level of
consumer protection.
• Encouraging public awareness about the financial market
through imparting educational programs is also a part of the
objectives of regulation
• The financial regulations are designed for the purpose of
reducing financial crimes and frauds.
CHALLENGES ON IMPLEMENTATION OF
CORPORATE GOVERNANCE

• Multiplicity of regulations

• Board accountability

• Lack of transparency in selection of board


members
MEASURES TAKEN BY GOI FOR IMPLEMENTATION OF
CORPORATE GOVERNANCE

• Series of efforts being made by two independent regulatory


bodies in a last few years to accomplish harmonism of
regulations policies and guidelines made applicable to the
regulated entities.
• RBI has advised, on the suggestion from the SEBI that the
Indian commercial banks (both public & private sector).
Which are listed on the stock exchanges should adopt the
guidelines of SEBI committees on corporate governance.
Limitations of Indian Financial Regulatory System

• Insufficient monitoring / regulatory mechanisms for


ensuring systemic stability of financial system and for
protection of consumer and investor rights.

• Lack of effective compliance with financial disclosures and


financial reporting standards also has negative impact on
the financial regulation.

• Inadequate infrastructure and mechanism for dispute


resolution and for coping with institutional failures is a
limitation.
The Advantages of Corporate Governance

• Purposeful strategic direction

• Improved relationships with the bank

• Improvement in profitability
Regulatory Financial Institutions in India

• RBI - Reserve Bank of India

• Ministry of Finance

• SEBI- Securities & Exchange Board of India

• FMC - Forward Markets Commission

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