Globalization and Corporate Governance in Indian Context

Globalisation is a concept that has been at the forefront as the main factor in business life during the last few years. This element has widely affected the business life, economy, community and the environment it exists in, in many different manners, and these changes have also left a huge impact on almost all the corporations. Globalisation has penetrated in the entire world, making economies adapt and change accordingly in order to meet the demands of both the domestic and international markets and entrusting the government of the nations with the responsibility to protect their economy and domestic market from collapsing. Corporate governance refers to a system of rules, regulations, principles, processes and practices by which a firm is effectively directed and controlled. In India, the Government found it extremely crucial and significant to respond to the rapid development of opening up of Indian economy that was taking place in 1991 after adopting the LPG policy and so to pace the Indian companies with the global platform, initiatives recommended by certain committees got prominence. The Confederation of Indian Industry (CII), the Associated Chambers of Commerce and Industry (ASSOCHAM) and the Securities and Exchange Board of India (SEBI) established certain committees to recommend initiatives in Corporate Governance which have been discussed in the paper along with the corporate governance Indian legal framework and the landmark case of Satyam Scandal. This research paper studies the relationship between corporate governance and globalisation in Indian context. The laws and regulations in India need to be framed keeping in mind the Indian scenario, that will be best suited for the country. After the enactment of the Companies Act, 2013, the new norms have facilitated the growth of Indian firms and brought them in line with international standards.