Regulatory Initiatives and Measures to Curb Corporate Frauds

Financial frauds can range from a minor employee theft to large scale of misappropriation of assets and manipulation of financial statement reporting. There are two important aspects of financial frauds—protection offered in the law and extent to which the law is enforced. India being one of the oldest legal systems in the world, has a Constitution that gives due recognition to statutes, case law and customary law consistent with its dispensations. There is a vast body of laws known as subordinate legislation, i.e. rules and regulations framed by the central and state governments and other local authorities. Then, there are interpretations of constitutional and legislative provisions by the Supreme Court of India and various high courts and tribunals in form of their decisions in cases. Read on to know more about initiatives and measures taken by the Central Government to stop the instances of corporate financial frauds..