Corporate India is in a transition phase. There is an increased reliance to go from small to big ie: from small time companies to large corporations capable of participating at the global forum. New communication and distribution, technologies, and the removal of trade and investment barriers, have created truly global markets with global competition for goods, services and capital, and even corporate control (as shown by the recent boom in cross-border mergers and acquisitions). An important question that beckons here: Is it necessary to go the ‘transparency and accountability’ way? After all, majority shareholders never complain, and minority shareholders are never left with the wherewithal to complain. A fair, transparent and accountable management would lead to increased shareholder value for the company. Market forces have their own role to play when it comes to implementation of corporate governance norms and guidelines. In order to protect the interests of various stakeholders in the company, it is necessary to have a mechanism which may lead to correction of corporate activities in relation to the investing class, which in turn enhances the quality capital formation.   

Corporate financiers (whether they are individuals or pension funds, mutual funds, banks and other financial institutions, or even governments) need assurances that their investments will be protected from misappropriation and used as intended for the agreed corporate objective.