SEBI LODR Regulations 2015 mandate corporate governance norms for listed companies including board composition, audit committees, and disclosure requirements. Independent directors must constitute one-third of board strength, with specific tenure limits and qualification criteria. Companies face penalties for non-compliance including delisting threats. Recent amendments introduced stricter related party transaction approvals and enhanced woman director requirements. The framework aims to protect minority shareholders and improve transparency in Indian capital markets through standardized governance practices.

Corporate governance in India operates through SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations 2015, which replaced the earlier listing agreement system. These regulations create a comprehensive framework ensuring that listed companies maintain transparency, accountability, and fairness toward all stakeholders, particularly minority shareholders. Board independence is central to this framework, requiring companies to have at least one-third independent directors who must meet strict qualification criteria and cannot have material relationships with the company. The regulations mandate various committees like audit, nomination and remuneration, and stakeholder relationship committees, each with specific composition requirements including independent director representation. Related party transactions require approval from independent directors and shareholders for material transactions. The framework addresses information asymmetry between management and shareholders through mandatory quarterly results, annual reports, and immediate disclosure of material events. Non-compliance results in penalties, suspension of trading, or delisting. This regulatory structure aims to enhance investor confidence, reduce agency costs, and align management actions with shareholder interests, ultimately strengthening India's position in global capital markets.