Komal Shrivastav, University Of Petroleum And Energy Studies
ABSTRACT
An era of misuse/abuse of corporations was once smoothly running with its exterminating capacity to erode investor faith in Indian economy with respect to various scams being handled in inattentive manner. The word crime depicts an image of an accident or a terrifying horror that takes place as a mark of heinous insensitivity which was tackled with appropriate severity while if we talk about corporate scenario, a major problem occurred when fraud has been committed in the name of a corporation and was less likely to be blameworthy as if it is of less importance. As occurred to be the prominent mistakes in earlier provisions while dealing with the corporate gamblers, our legal system failed to incorporate necessary strictness in terms of corporate crime activities that should create an apparent transparent environment in terms of the revealing information audit procedures for recipients of the corporation. Corporate frauds target the stability of an investor's investing power, the corporate reputation, associate sales and stocks in a manner that impacts into a devastating state of existence in an economy. This paper intends to deal with the gravity of corporate crimes, its impact on economic value and disturbance to the investors and related persons that turns around the faith and erodes credibility in big corporations related to earlier provisions of company law and how the emergence of new provisions have been incorporated by the recommendations and needful procedures to form a uniform and transparent system in terms of corporations. The fine may be passed on to customers in more exorbitant costs or to investors in decreased dividends and it relatively poses a worse situation to strive in had it been a situation of tackling the frauds same way. On the off chance that huge enough, it could make the organization shut down, tossing representatives jobless. Nonetheless, this is an analysis which involves how falsification of important information could generate illegal profits to various criminals, an elaborative content on corporate fraud activities that took place in India and lead to the foundation and emergence of new strict provisions in Companies Act 2013 and SEBI regulations via recommendations of various committees. Various trading and price sensitive information crimes have led to the fraud activities and has diluted the investors capacity to inform a pragmatic decision making approach with respect to their valuable earnings.
Keywords: Crime, Socio-economic Offences, White Collar Crimes, Economic consequences, financial fraud, erode
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