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Corporate governance in India is in need of structural reforms which will promote transparency, fix accountability and reward efficiency. Analyse.

Topic: Important aspects of governance, transparency and accountability, e-governance applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures.

4. Corporate governance in India is in need of structural reforms which will promote transparency, fix accountability and reward efficiency. Analyse. (250 words)

Difficulty level: Moderate

Reference: The Hindu

Why the question:

Over the past 10 days, the revelations about the functioning of the National Stock Exchange (NSE) during the tenure of Chitra Ramkrishna as Managing Director and Chief Executive Officer (CEO) have had people shaking their heads in disbelief.

Key Demand of the question:

To write about the reforms that are needed in corporate governance in India.

Directive word: 

Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.

Structure of the answer:

Introduction: 

Begin by defining corporate governance.

Body:

First, write about the various issues plaguing the corporate governance in India and substantiate with examples.

Next, write about various reforms that are needed to make corporate governance more effective in India – choosing independent directors, diversity in the selection of board members, penalties and effective regulation etc.

Conclusion:

Conclude by writing a way forward.