What has the Indian government done for protection of investors?
What has the Indian government done for protection of investors?
12.1 The Government has established an Investor Education and Protection Fund (IEPF) under Sec. 205 C of the Companies Act, 1956 under which unclaimed funds on account of dividends, matured deposits, matured debentures, share application money etc.
How does corporate governance affect investors?
Good corporate governance helps companies build trust with investors and the community. As a result, corporate governance helps promote financial viability by creating a long-term investment opportunity for market participants. Most companies strive to have a high level of corporate governance.
Do investors care about corporate governance?
Corporate governance is important to investors, and shareholders have rights and expectations under good corporate governance principles and practices. Their stake in corporate ownership makes their investments less susceptible to system risks.
What role do investors play in corporate governance?
They monitor the decisions of the Board and help in building effective corporate governance practices in the firm. Large institutional investors can convey private information that they obtain from management to other shareholders.
What is the investor protection?
investor protection involves various measures established to protect the interests of investors from malpractices. Securities and Exchange Board of India (SEBI) is responsible for regulations of the Mutual Funds and safeguard the interests of the investors.
What laws protect investors?
The Laws That Govern the Securities Industry
- Securities Act of 1933.
- Securities Exchange Act of 1934.
- Trust Indenture Act of 1939.
- Investment Company Act of 1940.
- Investment Advisers Act of 1940.
- Sarbanes-Oxley Act of 2002.
- Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
How does corporate governance play significant role in investors interest protection?
Corporate governance exaggerates the impact of investor confidence on corporate investment decisions. Good corporate governance practices improve board members’ monitoring function, hence moderately control shareholders’ interests, therefore firm managers make decisions effectively.
Why does good corporate governance attract global investors?
A good corporate governance system will help directors, corporate managers , and owner to better governing the company. Many international investors hesitate to invest their money if the corporate governance structure does not so good. They want to know how well the is the directors can manage the company.
How does an effective corporate governance structure improve investors confidence?
Effective corporate governance structure improves investor confidence, it ensures corporate accountability, enhances the reliability and quality of public financial information, and enhances the integrity and efficiency of the capital market.
How do institutional investors improve corporate governance?
Institutional investors have be- come active in strengthening corporate governance with an eye of enhancing corporate value since the beginning of 2000s. They exercise the voting rights at the general shareholders’ meeting and some of them engage in dialogue with investee companies.
Why does a good corporate governance attract global investors?
Why does a corporation need investor protection?
Financial markets. The most basic prediction of the legal approach is that investor protection encourages the development of financial markets. When investors are protected from expropriation, they pay more for securities, making it more attractive for entrepreneurs to issue these securities.