| Pub. Date | : October, 2021 |
|---|---|
| Product Name | : The IUP Journal of Accounting Research and Audit Practices |
| Product Type | : Article |
| Product Code | : IJARAP041021 |
| Author Name | : Subhajit Chakraborty* and Tamasi Biswas** |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 11 |
Customary scrutiny of compliances reduces the chances of treacherous practices in corporations, thus securing the dignity of corporate entities. It attempts to win the confidence of potential investors and stakeholders in the quest of commercial affairs. In this juncture, the mechanism of "secretarial audit" is germane towards the promotion of corporate governance administration. Detection of Corporate Fraud is indeed a complex procedure given the numerous norms and regulations. Since corporate scams ordinarily are prevalent in the organized sector, it may prove to be ineffective in tracing down the reason behind such perpetration. Hence, intervention of a regulatory body is the need of the hour for ensuring transparency and accountability of the corporate bodies. Secretarial auditor, a chair of confidence in every organization, is vested with the responsibilities of "secretarial audit" for ensuring that compliance and corporate reporting are done in adherence to the existing laws. As we are all aware of the stringent laws for the protection of minority interest, financial discrimination and other allied aspects can be a crucial factor for oppression. On a similar track, insider trading and market manipulation can be the basis for both financial and reputation loss, rendering serious trouble to the entire stakeholders of the organization. This paper is based on doctrinal study and intends to discuss how the mechanism of secretarial auditing helps to minimize the legal challenges of insider trading and market manipulation confronted by the corporate bodies. The paper analyzes how the mechanism of "secretarial audit" can slump the rates of corporate frauds.
Market manipulation and insider trading are common malpractices confronted by the Indian securities market. As per a report of the Statistical Research Department for the fiscal year 2011 to 2017, around 185 cases of stock manipulation and price rigging were investigated by the Securities and Exchange Board of India (SEBI). In 2019-20, the regulator investigated