The Impact Of Regulatory And Legal Mechanisms On Corporate Governance In Combating Corporate Frauds In India
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DOI:
https://doi.org/10.69980/lhr.v3i1.2577Keywords:
Corporate Governance, Corporate Fraud, Companies Act 2013, Prevention of Money Laundering Act (PMLA), Serious Fraud Investigation Office (SFIO)Abstract
Corporate frauds in India have significantly eroded investor confidence, diminished market credibility, and adversely impacted the economy. This paper investigates how legal and regulatory frameworks can bolster corporate governance to prevent fraud and mismanagement. Employing both doctrinal and empirical research methodologies, the study examines key statutory provisions—including the Companies Act 2013, SEBI (LODR) Regulations, and the PMLA—alongside survey responses from 500 participants comprising directors, auditors, lawyers, and members of the general public. The findings, illustrated with tables and graphs, indicate that despite considerable advancements in the legal framework, persistent enforcement challenges remain. The paper concludes by recommending greater auditor accountability, robust whistleblower protections, the establishment of specialized corporate fraud courts, and the integration of technology-driven fraud detection tools.
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