Ms. Meghna Mitra, Student, Xavier Law School, St. Xavier’s University
Dr. Kaustav Choudhoury, Assistant Professor, Xavier Law School, St. Xavier’s University
ABSTRACT
This paper explores the applicability of the Sarbanes-Oxley Act of 2002 (SOX) within the Indian corporate governance landscape, utilising a doctrinal research methodology based in secondary sources. The Sarbanes- Oxley Act, enacted in the United States in response to corporate scandals like Enron and WorldCom, significantly altered the regulatory framework for corporate governance and financial reporting. While SOX is primarily an American statute, its influence on global corporate practices has been profound. This study examines the extent to which SOX principles and requirements have permeated Indian corporate governance, particularly in light of India’s own regulatory developments, such as the Companies Act of 2013 and SEBI regulations. Through an analytical review of legal developments and case studies, this paper identifies the parallels, divergences, and potential areas of integration between SOX and Indian corporate laws. It also assesses the practical challenges and implications of adopting SOX-like provisions in India, considering the differences in legal, economic, and cultural contexts. The findings suggest that while India has adopted several SOX-inspired reforms, significant differences remain, raising questions about the feasibility and desirability of further SOX incorporation. This study contributes to the ongoing discourse on global corporate governance convergence and offers insights for policymakers, regulators, and corporate entities in India.
Keywords: Sarbanes-Oxley Act 2002 (SOX), Corporate governance, Indian Companies Act 2013, Regulatory convergence, SEBI regulations
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