Divyanshi Saxena & Gurusha Muniyal, BBA LLB, UPES Dehradun
ABSTRACT
Companies are one of the biggest revenue-generating entities in the country and they are incorporated and operated with the intention of increasing capital and magnifying profit. However, under the ravenous urge to increase profit or take shortcuts to shield themselves from the lengthy regulatory mechanism, some of the company or Company’s employees perform certain illicit activities that lead to them committing corporate crimes.
With the surge in the culture of capitalism and globalization, there has been a rise in corporate crimes. Various scams like the Harshad Mehta scam, Ketan Parekh scam, or Demat scam are some of the examples that introduce us to the paradigm of the extent of damage the corporate scam can cause to an individual and society at large and how such corporate crimes can prevent foreign investments and domestic public investment in companies.
In the current era of global capitalism, where there is advanced technology and development of e-commerce (e-commerce), it is expected that corporate crimes will only escalate and that there needs to be vigorous compliance with regards to corporate governance in order to bring a cessation of the ever- damaging reputation of Indian Capital market and corporate behaviour.
Keywords: Corporate crimes, foreign investment, corporate governance, Capital market, illicit activities, scam.
