Regulation in Corporate Governance & Elsewhere: The Continuing Debate
CORPORATE GOVERNANCE: AN EMERGING SCENARIO, pp. 60-96, Bala N. Balasubramanian and Deepak M. Satwalekar, eds., National Stock Exchange of India Limited, December 2010
26 Pages Posted: 30 May 2011
Date Written: December 1, 2010
This paper traces in part the changes in the nature and extent of the regulatory role of the government over the years, and takes a look at some of the general principles which form the basis of regulation. We first review the market regulation scenario preceding and following the 2008 financial meltdown, and then turn to a consideration of the regulatory scenario in the corporate sector with particular reference to India. We conclude that a better alignment of self-regulation mechanisms with corporate governance would mutually reinforce their strengths, and would provide a more sound institutional foundation for market systems. Firms - alongside other actors such as industry associations, citizen groups, and professional societies - could develop appropriate regulatory rules within a transparent and accountable framework.
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