Phase IFoundation
Background
Overview
Good corporate governance and transparency are fundamental to the health and stability of financial markets, directly impacting investor trust and capital formation. UPSC often asks about regulatory measures to enhance these aspects and the challenges involved.
Corporate governance refers to the system by which companies are directed and controlled, encompassing the relationship between a company's management, its board of directors, shareholders, and other stakeholders. Transparency, a core principle of good governance, involves timely and accurate disclosure of information regarding the company's financial performance, ownership, and management, crucial for investor confidence and market integrity.