Owing to globalization, the world is one big village and corporations are an integral part of it. They have developed at a strong pace as one of the most important organizations in the modern economy[1]. The corporations can be credited with providing everything to us from houses, food, and clothes to healthcare, employment, and insurance. […]
Companies are defined as the business organisation formed by a group of individuals for the purpose to gain profit and are considered as one of the important sources of economic development of the country. Thus, it becomes necessary to enact rules and regulations in order to govern the smooth functioning of companies in the country
Infrastructure Leasing and Financial Services Ltd. (IL&FS) is a shadow bank, that means it does not receive any kind of deposits unlike the traditional banks.[1] IL&FS defaulted the payment of dues which amounted to more than Rs. 91,000 Crore. Because of the forthcoming imminent possibility of contagion effect in the financial market, the Central Government
Memorandum of association is the fundamental document for the incorporation of the company. [1] “Charter” is the other name used for memorandum of association. This is the basic document that defines the company’s objectives and the rights of the members. Without the memorandum of association, no company can be incorporated. Memorandum of association sets the
With the ever-changing global market scenarios, the terms corporate governance and corporate democracy have become the new talk of the town. The Companies Act, 2013 was a hope for elevating the two and to revive the debilitated corporate firms, although the genesis of the 2013 Act was long delayed but it still managed to establish
Insider trading includes trading in a public company by someone who has confidential, price sensitive information, and who uses and deals with such information. Insider trading can either be illegal or legal depending on the knowledge, based on which the individual is trading. According to section 2(h)(ha) of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992[i] ‘price sensitive information’ means any information relating to present, future or even past, that has the potential to affect the prices of securities and value of the company.
The Indian capital market played a vital role in saving mobilization in the year 1950. During the period of 1960-1980, the importance of the capital market was diminished and during the same time as a proportion of national income, the domestic savings were increased from 13%- 22%. From the capital market amount fund was raised up to 13% of net domestic saving.
Raising of capital refers to the process of procuring capital funds that are undertaken by companies, governments, etc. Companies may raise capital either by means of a debt instrument or through the issuance of shares. Depending upon the structure of a company, the method of raising capital generally varies. Factors that affect the raising of capital by a corporate include management structure, governance and quality, strategies, and the purpose and funding requirements of the company.
