IMPACT OF GLOBALIZATION AND LIBERALISATION ON INDIAN COMPANY LAW

AUTHOR – ASHRAF RAJA, STUDENT AT AMITY UNIVERSITY, AMITY UNIVERSITY, PATNA

BEST CITATION – ASHRAF RAJA, IMPACT OF GLOBALIZATION AND LIBERALISATION ON INDIAN COMPANY LAW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (13) OF 2025, PG. 105-114, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT:

The liberalization and globalization of the Indian economy have greatly affected company law and its application in India. India has transitioned from a controlled, closed economy to a liberalized economy aiming for global integration. The reforms focused on removing barriers to trade, foreign investment, and export promotion in India and aimed to make Indian companies competitive in domestic and international markets. All of this required a complete restructuring of the legislative framework governing companies in India to ensure conformity with international standards of corporate governance and adherence to practices that promote transparency and accountability. The Companies Act of 1956, which governed company matters for decades, became increasingly inadequate in dealing with the corporate requirements under the liberalized regime. As a result, the Companies Act of 2013 was enacted, reflecting the need for modernization and important changes in various corporate features such as corporate social responsibility, independent directors, and one-person companies, as well as better disclosure norms. Overall, the law seeks to strengthen investor protection, attract foreign direct investment, and enhance corporate governance in line with international practices and standards. Globalization has also led to the convergence of company law with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), ensuring an economy more aligned with global practices. These changes have ensured that the accounts of Indian companies are well presented, following IFRS, and are more comparable on a global level. The role of the conducting and supervising agencies has also become significant and requires stringent compliance with the new rules along with the listing agreements set forth by the Securities and Exchange Board of India (SEBI), National Company Law Tribunal (NCLT), National Financial Reporting Authority (NFRA), and other regulatory bodies. The researcher tries to find out how globalization and liberalization have transformed Indian company, especially through reforms like companies Act,2013 to align international standards, improve corporate governance and attract foreign investment

Keywords: Globalization, Liberalization, Indian Company Law, Companies Act 2013,