CORPORATE GOVERNANCE AND ITS CHALLENGES IN INDIA

Good corporate governance is utmost crucial for the emerging countries as well as developed countries to achieve its economic goals. Here the developing countries market known as ‘emerging markets', where the markets are more imperfect and suffer from greater informational deficits than markets in developed countries. It is very crucial for business entities to follow good corporate governance in the market for their success. “Improvement in corporate governance practices can improve the decision making process within and between a company's governing bodies, and should thus enhance the efficiency of the financial and business operations. Better corporate governance also leads to an improvement in the accountability system, minimizing the risk of fraud or self-dealing by company officers. An effective system of governance should help ensure compliance with applicable laws and regulations, and further, allow companies to avoid costly litigation”. Through good corporate governance the emerging market can produce benefits, enhance the reputation of the organization and make it more attractive to customers, investors and suppliers.