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Corporate Governance Failure and the Regulatory Fight Against It: An Examination of Select Instances From India

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Abstract

India has recently witnessed several allegations of corporate governance lapses and failure. The alarming situation prompted the government and the regulators to take serious note to make the companies accountable for the allegations and to bring in regulations to contain the policy leaks. The governing body and the board of directors must abide by ethical standards, demonstrating an unwavering commitment to discipline, transparency, fairness, and accountability for their actions. This work uses a case study approach to examine various recent corporate governance failures in India. The examination is made in the following dimensions: accountability, transparency, equitability, responsibility, ethical conduct, board independence, risk management, corporate social responsibility, stakeholder engagement, and regulatory compliance. The study scrutinized various classic and recent corporate governance lapses in established corporate entities and startups and in Indian banks. The measures implemented by regulatory bodies, including the RBI, SEBI, and the MCA, were analyzed.

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... In the early 21 st century, Satyam Computer Services was recognized as a success story in India's rapidly developing information technology sector [5] . Ramalinga Raju, the company's founder and chairman, was the driving force behind the company's success [6] . Nevertheless, a stunning surprise was hiding beneath the surface of everyone's achievement. ...
... Risk management is a chronological process that identifies, analyzes, and mitigates threats or uncertainties that can affect the organization (Moridu, 2023). This process is indispensable for driving the productive performance of an enterprise, ensuring that potential threats are systematically identified, analyzed, and mitigated to safeguard the organization's objectives and operations (Manda & Khaliq, 2023). ...
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ITBD. (2023, March 30). Sebi clears several reforms to empower shareholders, boost corporate governance. India Today. https://www.indiatoday.in/business/ story/sebi-meeting-new-reforms-empower-shareholders-investors-better-corporategovernance-2353476-2023-03-30
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Confirm" or "deny" media reports in 24 hrs from October 1: SEBI to top 100 listed cos
  • Fortune India
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Enhanced MCA21 V3 Portal Paves the Way for Improved Corporate Governance
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GNConnect. (2023, June 13). Enhanced MCA21 V3 Portal Paves the Way for Improved Corporate Governance. Governance Now. https://www.governancenow. com/views/columns/enhanced-mca21-v3-portal-paves-the-way-for-improvedcorporate-governance
Adani Group: How The World's 3rd Richest Man Is Pulling The Largest Con In Corporate History
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Hindenburg. (2023a, January 24). Adani Group: How The World's 3rd Richest Man Is Pulling The Largest Con In Corporate History. Hindenburg Research. https:// hindenburgresearch.com/adani/
Adani Group firms' shares routed, market cap falls below Rs. 10 lakh crores amid US regulatory inquiries
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Janaki, K. (2023, June 23). Adani Group firms' shares routed, market cap falls below Rs. 10 lakh crores amid US regulatory inquiries. Business Line. https:// www.thehindubusinessline.com/companies/adani-group-affirms-robust-corporategovernance-amidst-us-regulatory-inquiries/article67001037.ece
Corporate governance root of supervisory concerns: RBI deputy governor MK Jain
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Joel, R. (2023, June 15). Corporate governance root of supervisory concerns: RBI deputy governor MK Jain. Economic Times. https://economictimes.indiatimes. com/news/economy/policy/corporate-governance-root-of-supervisory-concernsrbi-deputy-governor-mk-jain/articleshow/101025920.cms
How did INR3,500 crore go missing from the books of Coffee Day Enterprises? Grab your coffee
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The Adani-Hindenburg Saga: A Case Study
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Kumar, D., & Mishra, A. K. (2023). The Adani-Hindenburg Saga: A Case Study. South Asian Journal of Management, 30(1), 187-196.
Sustainable Corporate Governance and its importance in India
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Laskar, S. (2023). Sustainable Corporate Governance and its importance in India. Indian Journal of Law and Legal Research, 5(2). https://www.ijllr.com/post/ sustainable-corporate-governance-and-its-importance-in-india
Punit Goenka from from holding key positions in Zee; probe to complete in 8 months. Live Mint
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Livemint. (2023b, August 14). SEBI bars Subhash Chandra, Punit Goenka from from holding key positions in Zee; probe to complete in 8 months. Live Mint. https://www. livemint.com/companies/news/sebi-bars-subhash-chandra-punit-goenka-from-fromholding-key-positions-in-zee-probe-to-complete-in-8-months-11692029968688.
Probe diversion of Dish TV funds, say small investors
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Gopika, G. (2023, July 12). Probe diversion of Dish TV funds, say small investors. https://www.livemint.com/companies/news/investors-demand-probeinto-alleged-fund-diversion-by-zee-entertainment-from-dish-tv-seek-boardreconstitution-11689100340969.html
Founders Will Be Measured On Governance Quotient: BoAt's Aman Gupta
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Hemant, K. (2023, July 10). Founders Will Be Measured On Governance Quotient: BoAt's Aman Gupta. https://inc42.com/buzz/founders-measured-governancequotient-boat-cmo-aman-gupta/
Our Reply To Adani: Fraud Cannot Be Obfuscated By Nationalism Or A Bloated Response That Ignores Every Key Allegation We Raised
  • Hindenburg
Hindenburg. (2023b, January 29). Our Reply To Adani: Fraud Cannot Be Obfuscated By Nationalism Or A Bloated Response That Ignores Every Key Allegation We Raised. https://hindenburgresearch.com/adani-response/
At PTC India Financial, 3 Independent Directors Resign, Throwing a Corporate Governance Grenade. The Wire
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Kaushal, S. (2022, January 20). At PTC India Financial, 3 Independent Directors Resign, Throwing a Corporate Governance Grenade. The Wire. https://thewire.in/ business/ptc-india-finance-independent-directors-resign
Ensuring a Solid Foundation: Corporate Governance for Startups
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Kritika, N., & Nayan, D. A. (2023, July 5). Ensuring a Solid Foundation: Corporate Governance for Startups. Invest India. https://www.investindia.gov.in/team-indiablogs/ensuring-solid-foundation-corporate-governance-startups
DishTV clarifies on corporate governance breach, calls minority investors allegations "baseless"; stock ends 10% up
  • Livemint
Livemint. (2023a, March 1). DishTV clarifies on corporate governance breach, calls minority investors allegations "baseless"; stock ends 10% up. https://www. livemint.com/companies/news/dishtv-clarifies-on-corporate-governance-breachcalls-minority-investors-allegations-baseless-stock-ends-10-up-11677679874563.
Reframing Governance as a lever for Startup Growth and Value Creation
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Manav, G. (2023, July 8). Reframing Governance as a lever for Startup Growth and Value Creation. https://yourstory.com/2023/07/reframing-governance-as-alever-for-startup-growth
RBI sends PFS MD on permanent leave amid governance issue
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Mannu, A. (2023a, June 20). RBI sends PFS MD on permanent leave amid governance issue. ET CFO. https://cfo.economictimes.indiatimes.com/news/ governance-risk-compliance/rbi-sends-pfs-md-on-permanent-leave-amidgovernance-issue/101135691