International Journal of Scientific Research and Engineering Development

Corporate misconduct in India has emerged as a significant concern in recent decades, largely due to persistent weaknesses in corporate governance structures and regulatory compliance mechanisms. Several corporate scandals and governance failures have demonstrated how inadequate oversight, weak board independence, and lack of transparency can undermine investor confidence and market stability. Governance deficits often arise from ineffective internal monitoring systems, conflicts of interest among directors, and insufficient disclosure practices, which collectively create opportunities for financial irregularities and managerial abuse of power. In response to these challenges, the Securities and Exchange Board of India (SEBI) has assumed a central role in strengthening the regulatory framework governing listed companies and capital markets. Through a combination of regulatory reforms, enforcement actions, and surveillance mechanisms, SEBI seeks to ensure that corporations operate in accordance with principles of fairness, accountability, and transparency. Over the years, SEBI has introduced various governance measures, including stricter disclosure requirements, enhanced corporate reporting standards, and stricter penalties for violations of securities laws. Additionally, SEBI’s enforcement actions serve as a deterrent against corporate fraud, insider trading, and manipulation of financial information. Despite these efforts, the persistence of corporate misconduct indicates that regulatory enforcement alone may not fully address governance deficiencies unless it is complemented by strong internal corporate ethics and effective compliance systems. The dynamic nature of modern financial markets, characterized by complex financial instruments and digital trading platforms, has further complicated the task of regulatory oversight. Consequently, SEBI must continuously adapt its enforcement strategies to address emerging governance risks and technological challenges. Furthermore, effective corporate governance requires cooperation between regulators, corporate management, institutional investors, and other stakeholders to ensure adherence to legal and ethical standards.

Shifa Bilal Tamboli, Simeen Phiroj Mulani, Arman Tajuddin Shiakh,"Corporate Misconduct and Governance Deficits in India: Evaluating SEBI’s Enforcement Role in Strengthening Accountability" International Journal of Scientific Research and Engineering Development, V9(2): Page(2224-2233) Mar-Apr 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.