Abstract
In recent years, more and more Indian companies have been raising capital overseas by getting themselves listed on international stock exchanges. These efforts have been accompanied by the Indian governments drive to attract more foreign direct investment (FDI). Both factors have gone hand in hand with the realization that if Indian companies want more access to global capital markets, they will need to make their operations and financial results more transparent. In other words, they will need to improve their standards of corporate governance. The Securities and Exchange Board of India, or SEBI, which regulates India's stock markets, took a major step in this direction a year ago. It asked Indian firms above a certain size to implement Qause 49, a regulation that strengthens the role of independent directors serving on corporate boards.
While taking a deep look at the present scenario in capital market in India, the shortcomings of the present system of corporate governance in India will be explained. In this effort the emerging issues in corporate governance in India will be highlighted.
