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Abstract
Corporate governance is the system of rules, practices and processes by which a firm is directed and controlled. It is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. There is a level of confidence that is associated with a company that is known to have good corporate governance. Bad corporate governance can cast doubt on a company's reliability, integrity or obligation to shareholders which can have implications on the firm's financial health. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam. Corporate governance in India is the outcome of a long process of evolution, metamorphosis and refinement. However, the bigger challenge for India is the proper and effective implementation of the normative rules, as most prudent norms can be hoodwinked by corrupt practices.