CORPORATE LAW AND THE GOVERNANCE OF THE INDIAN PRIVATE CORPORATE SECTOR SINCE GLOBALIZATION.

Abstract

The liberalization of India's economy in 1991 marked a transformative era for corporate law and governance, aligning the private sector with global best practices. The enactment of the Companies Act, 2013, introduced key reforms, including independent directors, Corporate Social Responsibility (CSR), and enhanced shareholder rights, ensuring greater transparency and accountability. Regulatory bodies such as SEBI (Securities and Exchange Board of India) played a pivotal role in enforcing compliance, curbing insider trading, and safeguarding investor interests. Additionally, the Insolvency and Bankruptcy Code (IBC), 2016, provided a structured resolution mechanism, improving corporate insolvency management. The Competition Act, 2002, further strengthened market fairness by restricting monopolistic practices.

Despite these advancements, challenges persist in regulatory enforcement, compliance burdens, and addressing corporate ethical concerns. The dominance of family-owned businesses, judicial delays, and the evolving corporate governance landscape require continuous policy refinements. Furthermore, the integration of digital governance, ESG (Environmental, Social, and Governance) standards, and fintech regulations is crucial for fostering long-term investor confidence and sustainable economic growth.

This research critically examines the evolution of corporate law post-globalization, its impact on private sector governance, and the effectiveness of regulatory frameworks in promoting ethical business conduct. It underscores the significance of corporate law as a “watchdog” for investor protection while highlighting areas requiring further reforms. Addressing these gaps will be instrumental in ensuring robust corporate governance and reinforcing India's position in the global business landscape.