Vol. 1, Issue 2, Part C (2015)

Abstract
Since 1990s, Indian regulators as well as industry representatives and companies have undertaken significant efforts to revamp the country’s corporate governance. The Corporate governance is the system of principles, policies and procedures, which clearly defined the responsibilities and accountabilities of different stakeholders of corporate-houses. India’s corporate governance reforms were initially spearheaded by corporate India and quickly became component of the work of the country’s primary capital markets regulatory authority, the Securities Exchange Board of India (SEBI), and the Ministry of Corporate Affairs (MCA). Indian companies, banks and financial institutions (FIs) can no longer afford to overlook better corporate practices. Corporate governance provides the framework for attaining a company's objectives. As India gets incorporated in the world market, then it demands greater revelation, more translucent explanation for major decisions and better shareholder value. Through this paper I want to cover different legal obligations like listing agreements, company laws etc. which is required to be followed to ensure effective security market and stakeholders interest. It will also cover the challenges faced in the Indian market and different ways to overcome them.