CCG214 | Corporate Governance and Regulation in India

The period of full-fledged Liberalization of the Indian economy since 1991 has inter- alia resulted in two crucial developments both of which have unfolded simultaneously and are also related. First, is the greater role of the private corporate sector in the economy which is an outcome of the broader economic policy adopted by the state in this period. This is in so far as the various sectors of the economy which were earlier partially or completely reserved for public sector like telecom, power, mining, banking, insurance, capital markets, airlines, etc. were opened up for increased participation of the private sector and foreign investment in this period. The public sector continue to operate in these areas but to a lesser proportionate extent than pre-liberalization period. The retreat of the public sector entities in various sectors has in fact resulted in a redefined role of the State as regulator. This change in role has been the reason for the second key development in the Indian economy in this period mentioned above which pertains to the need for a different approach to regulatory governance and examining the rise of the regulatory state (Som and Naru, 2017). The rise of the regulatory state in the liberalization period has entailed the emergence of a number of independent regulatory institutions in various sectors (Dubash, 2008; Somanathan, 2016; Burman and Zaveri, 2016). This course focuses on such institutions that have emerged in the securities and financial sector like Securities and Exchange Board of India (SEBI), Competition Commission of India (CCI), Insolvency and Bankruptcy Board of India (IBBI) etc. to regulate the working of the various entities in these sectors. In this context, the course tries to introduce students to the applicability of the regulations by some of these key independent regulators in the financial sphere which brings to light the various aspects of regulation framework.

This course can be considered both as a standalone course with a focus on financial regulation and also as one which develops further on courses on regulation and regulatory state offered under LLB, LLM and MPP programme at NLS. The course is based on readings on regulation that lie at the intersection of law, economics and finance. In addition to the readings given below the course materials includes analysis of reports, statutes, specific regulations and case law (wherever the need be). The course shall involve lectures by instructor and presentations (both group and individual presentations) by students. If possible some experts can also be invited to give a talk related to a specific regulator covered below. The modules and readings of the course are detailed below.