Corporate Transparency and Disclosure Obligations in India

Abstract

Efficient disclosure methods ensure that investors obtain precise, prompt and thorough information about the financial status, governance framework and operational activities of companies. In India, corporate transparency and disclosure obligations secure accountability through mandatory reporting under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These rules promote investor trust by requiring timely financial statements, annual reporting, a governance framework and ESG disclosures. This paper examines the legal provisions governing corporate disclosure in India under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and assesses the role of the Securities and Exchange Board of India in promoting transparency and safeguarding investors. It offers an examination of investor protection, corporate responsibility and transparency in the Indian capital markets, analyses the extent to which corporate disclosure practices protect investors' interests and enhance market transparency, and identifies issues and gaps in the existing disclosure system. The research also examines the effects of insufficient disclosure on investor trust.