The Role of Disclosure in Effective Corporate Governance: An Analysis

By Ankita Singh (LL.M.), CPJ, GGSIPU, Delhi.

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Abstract

Disclosure is a fundamental pillar of effective corporate governance, enabling transparency, accountability, and trust in corporate sector. As organization grow and complexity, disparity of information between insider and external stakeholders poses significant challenges. In this context, mandatory and voluntary requirement plays a significant role in reducing informational gaps, deterring unethical practices, and strengthening investor confidence. This research paper examines the integral role that disclosure requirements play in shaping and sustaining sound corporate governance practices, particularly within the Indian corporate framework. The study explores the evolution of the disclosure norms under the Companies Act 2013, and the Securities and Exchange Board of the India (Listing obligations and disclosure Requirements) Regulations, 2015. It analyses how timely and accurate disclosure regarding board composition, financial results, related party transaction, corporate social responsibility, risk management, and director remuneration enhance corporate transparency and improve oversight. The role of regulatory bodies such as SEBI and ministry of corporate affairs (MCA) is critically examined to understand how policy instruments and enforcement mechanisms influence corporate behaviour and governance outcomes.

Keywords- Corporate Governance, Disclosure, Sebi, Transparency, Accountability, Stakeholder Confidence, Lodr, Financial Reporting

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