Mythri Raj, School of Law, Christ University Solomon Cruz, School of Law, Christ University
ABSTRACT
India's strong economic expansion, propelled by changes in the country's income distribution, liberalization, and globalization, has created a complicated economic environment. Corporate fraud is a persistent difficulty that the business sector faces in this dynamic economy. It poses serious risks to investor trust, corporate reputation, and overall market stability. This problem affects societal, ethical, and regulatory aspects in addition to financial ones. Notable incidents such as the IPO, PACL, Sardha Chit Fund, Satyam, Harshad Mehta, and Sahara scams demonstrate this, illustrating a worldwide pattern inside India's economy. Corporate frauds continue because of inadequate internal controls, unethical behavior, human greed, and lax enforcement, even with a strong legal framework anchored by the Companies Act, 2013, as well as laws like the Indian Penal Code, 1860, Prevention of Corruption Act, 2013, and Information Technology Act, 2008. In order to preserve the integrity and resiliency of India's corporate sector, addressing this challenge necessitates a concentrated effort to strengthen and successfully apply these regulatory frameworks. This study conducts a critical analysis of the characteristics and perceptions of corporate frauds in India, analyzing their effects on the economy, stock market, company, and investing behavior. It highlights new concerns and argues for redefining and reorganizing current legal and regulatory requirements. The study aims to conduct a thorough examination of case studies related to corporate fraud and suggests a multimodal strategy that includes changes to the law and improved cooperation amongst regulatory agencies. The objective of this strategic plan is to strengthen India's economic landscape against the ongoing challenge of corporate fraud by fostering a more robust and secure corporate environment in the future.
Keywords: Corporate frauds, Corporate Sector, Regulatory reforms, Investor behaviour, Economic impact
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