Corporate Governance & Minority Shareholders – Need for More Vigilance

Stock markets are inherently risky but due to malpractices, risk increases manifold. Satyam may not be an exception but a norm in the corporate world. Here is an understanding of some of the ways in which minority shareholders get duped by the promoters group. This paper attempts to study such malpractices. SEBI's strict vigilance, convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRS), growing awareness among public shareholders and Corporate Governance taking central stage will make it increasingly difficult for promoters to indulge in such unethical practices to make personal gains at the cost of the public shareholders; however framing of rules and regulations is not enough to find a solution to what is largely a moral and ethical issue and influenced more by the cultural upbringing and education ethos. There is a need to develop a robust model of Corporate Governance as fundamental ingredient for strengthening economy and developing capital markets