Implications of Infosys and Tata Cases for Corporate Governance in India

Indian corporations have a major role to play in nation building because of their impact on the Indian stock market. Nation building is contingent on the sound principles of corporate governance, as corporate performance is dependent upon corporate governance practices. The objective of this paper is to examine the corporate governance issues that Indian corporations are facing in the wake of recent corporate battles that have hit the boardrooms of two famous and flourishing companies - Infosys Limited and Tata Group. The examination of corporate governance issues in Indian corporates is required in the wake of several high profile corporate battles, for which onus is placed on the underlying lack of proper governance structure and guidelines by the regulating agencies. The Murthy-Sikka controversy at Infosys and the Tata-Mistry controversy at Tata Group point to the need for Indian lawmakers to review the corporate governance laws in India; considering the peculiarities of Indian corporates. Given that the Securities Exchange Board of India (SEBI) has appointed a committee to review the corporate governance norms in India following some recent episodes, one can expect changes in the near future. In this context, this paper discusses the corporate governance challenges and their likely implications for the corporate governance regulations in India