This document discusses corporate governance in India and regulations from the Securities Exchange Board of India (SEBI). It defines corporate governance and outlines its key principles and objectives. It also discusses SEBI's role in establishing standards and protecting investors following scandals. The largest example discussed is the Satyam scandal, where the CEO confessed to overstating profits by billions through fake accounts and invoices.

1. Corporate Governance In India And
SEBI Regulations
Presented By:
Atif Ghayas
Aligarh Muslim University, Aligarh

2. Here comes your footer
Contents
 Introduction
 Definition
 Key players
 Principles of Corporate Governance
 Objectives of Corporate Governance
 Corporate Governance in India
 Securities Exchange Board Of India
 Satyam Scandal
 Conclusion

3. Here comes your footer
Introduction
 The last few years have seen some major scams and corporate
collapse across the globe.
 In India, the major example is Satyam which is one of the largest
IT companies in India.
 All these events have caused the pendulum of public faith to shift
away from free market to a more closely regulated one

4. Here comes your footer
Definition
 A system of law and sound
approaches by which corporations are
directed and controlled
 Corporate governance are the policies,
procedures and rules governing the
relationships between the
shareholders, directors and managers
in a company, as defined by the
applicable laws, the corporate charter,
the company’s bylaws, and formal
policies

5. Here comes your footer
Key players in CG
 Management
 Board of Directors
 Customers
 Shareholders
 Employees
 Regulators
 Suppliers

6. Here comes your footer
Principles in CG
 Rights and equitable treatment of shareholders
 Interests of other stakeholders
 Role and responsibilities of the board
 Integrity and ethical behaviour
 Disclosure and transparency

7. Here comes your footer
Objectives of CG
 Enhance the performance of companies
 Enhance access to capital
 Enhance long term prosperity
 Provide barrier to corrupt dealings
 Impacts on the society as a whole

8. Here comes your footer
CG in India
 The Indian corporate scenario was more or less stagnant till the
early 90s.
 The position and goals of the Indian corporate sector has changed
a lot after the liberalization of 90s.
 India’s economic reform programme made a steady progress in
1994.
 India with its 20 million shareholders, is one of the largest
emerging markets in terms of the market capitalization.

9. Here comes your footer
Securities Exchange Board Of India
 On April 12, 1988, SEBI was established with objective of
protecting the rights of small investors and regulating and
developing the stock markets in India.
 In 1992, the Bombay Stock Exchange (BSE),the leading stock
exchange in India, witnessed the first major scam masterminded
by Harshad Mehta.

10. Here comes your footer
Securities Exchange Board Of India
 Analysts unanimously felt that if more powers had been given to
SEBI, the scam would not have happened.
 As a result the Government of India brought in a separate
legislation by the name of ‘SEBI Act 1992’and conferred statutory
powers to it.
 Since then, SEBI had introduced several stock market reforms.
These reforms significantly transformed the face of Indian Stock
Markets

11. Here comes your footer
 Overstated assets and income
 The results announced on October 17, 2009
overstated quarterly Revenues by percent and
profits by 97 percent.
 The global head of internal audit also illegally
obtained loans for the company.
 Created 13000 fake salary accounts
 Created fake customer identities and generated
fake invoices to inflate revenue
Satyam Scandal

12. Here comes your footer
Satyam Scandal
 The CEO was convinced that the gap in the balance sheets reached an
unmanageable heights and could not be filled.
 Satyam Computer crashed by Rs 139.15 or 77.69 per cent to close at
Rs 39.95, after the Chairman`s confession
 Bombay stock exchange fell 700 points
 The Sensex recorded the biggest single-day loss in the past two
months, after Satyam Computers Services, plunged 80 percent.

13. Here comes your footer
Conclusion
 Corporate governance And economic development are
intrinsically linked.
 Effective corporate governance systems promote the
development of strong financial systems
 Which, in turn, have an unmistakably positive effect on
economic growth and poverty reduction.

14. THANK YOU