Role of SEBI as regulator in maintaining corporate governance standards in India

Abstract

Today corporate sector around the world is blamed for several illegal tactics and practices and these illegal tactics and practices are curse for the corporate sector. These are not good for the civilized society. There are measures and mechanisms to curb illegal tactics and practices of corporate entities. Corporate governance is one of the effective tool and mechanism for the corporate entities to free themselves from these and for their success and long term survival. In this paper an attempt has been made to discuss the role played by SEBI through clause 35B and clause 49 of the listing agreement in making companies to comply with the corporate governance norms in India. This article is divided into conceptual clarification, corporate governance legal Frame work in India, pillars of effective corporate governance, SEBI role in corporate governance with section clause 35B and clause 49 and conclusion with recommendations. SEBI through the norms and provisions contained in clause 35B and clause 49 to listing agreement is instrumental in making corporates to comply with the standards of corporate governance