An Analysis of the Legal Provisions for Corporate Governance in Indian Public Sector Undertakings

In recent years, corporate governance has emerged as a critical issue for Indian public sector undertakings (PSUs). In response to the increasing demand for transparency, accountability, and ethical behavior from these organizations, the Indian government has introduced various legal provisions to ensure better corporate governance practices in PSUs. The purpose of this article is to evaluate the regulatory framework for corporate governance in Indian Public Sector Undertakings (PSUs) and assess how effectively it promotes good governance practices. The research primarily concentrates on the Companies Act of 2013, along with related laws such as the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations of 2015, and the guidelines issued by the Department of Public Enterprises. This article scrutinizes the principal elements of these legal frameworks, which involve the makeup of the board of directors, the duties and obligations of independent directors, the mandates for disclosure, and the means by which accountability and transparency are guaranteed. It also assesses the challenges faced by PSUs in implementing these provisions and the extent to which they have been successful in improving corporate governance practices. Overall, the analysis suggests that while the legal provisions for corporate governance in Indian PSUs have improved in recent years, there is still scope for further enhancement. The paper concludes by making some recommendations for strengthening the legal and regulatory framework for corporate governance in PSUs, including the need for greater transparency, stronger enforcement mechanisms, and more effective stakeholder engagement.