506 Int. J. Indian Culture and Business Management, Vol. 4, No. 5, 2011
Copyright © 2011 Inderscience Enterprises Ltd.
The changing landscape of corporate governance
framework in India
J.P. Singh,* Naveen Kumar and
Shigufta Hena Uzma
Department of Management Studies,
Indian Institute of Technology Roorkee,
Roorkee 247667, Uttarakhand, India
E-mail: jpsiitr@gmail.com
E-mail: naveensrivastav@gmail.com
E-mail: shigufta.uzma@gmail.com
*Corresponding author
Abstract: Significant changes have taken place in India after its independence,
making the economy more diverse and complex. Among the fastest developing
countries of the world, India is in the continuous process of upgrading its
corporate governance (CG) framework to endow a transparent business
environment. The present article makes an endeavour to retrace developments
in CG in India from independence to date. The study analyses the issues and
challenges posed in (1) the era after independence and (2) post-liberalisation
regime and examines the development of CG during these periods to address
these issues with a focus on the Companies Act, 1956 and Clause 49 of the
Listing Agreement. The article also evaluates reforms proposed under the new
framework of Companies Bill, 2009, which enables an opportunity for
lawmakers to reassess the extant CG framework and initiate appropriate
improvements that can reinforce investor’s confidence in the Indian economy
in the aftermath of the Satyam fiasco.
Keywords: CG; corporate governance; Clause 49; Companies Act, 1956;
Companies Bill, 2009; board; directors; Satyam; auditor.
Reference to this paper should be made as follows: Singh, J.P., Kumar, N. and
Uzma, S.H. (2011) ‘The changing landscape of corporate governance
framework in India’, Int. J. Indian Culture and Business Management, Vol. 4,
No. 5, pp.506–522.
Biographical notes: J.P. Singh is a Fellow Member of the Institute of
Chartered Accountants of India and Institute of Company Secretaries of India
and an Associate Member of the Institute of Cost and Works Accountants of
India. Additionally, he holds a professional degree in Law and a PG Diploma in
Merchant Banking. His research interests embrace corporate governance,
corporate finance and accounting, quantitative finance and risk management
and related areas. Currently, he engaged as a Professor at the Department of
Management Studies, IIT Roorkee. He also has about 10 years of corporate
experience as Head of Finance and Secretarial Functions of listed companies.
Naveen Kumar is a Research Scholar in the Department of Management
Studies, IIT Roorkee. He is a postgraduate in Engineering from IIT Kharagpur
and is working towards his doctorate from IIT Roorkee in the area of corporate
governance. His other interest areas include corporate finance and credit risk
management.