Corporate Governance is a Speed breaker for Indian StartUps
The Investor’s first preference is on corporate governance and clear business growth vision. Startups want to raise the funds from venture capitals than founders and entrepreneurs must have the quality of ideas on how to manage the business with the highest corporate ethics.
India leads as a startup hub in the coming years, and the dream will turn real if some of the questions responded with high virtue.
StartUps India movement is the talk of the town nowadays, but some known concerns are building doubts in the mind of Foreign investors. Corporate governance is a significant concern in India for the last 10 years. Many big well-organized corporate houses like the ADAG group, JP Group, ABG, Yes Bank, and some NBFCs companies are in big trouble, and many corporate governance concerns are created from these stories.
The big sad report, India’s biggest retail cafe chain, Coffee Day’s founder V. G. Siddhartha committed suicide. The reason behind the suicide is the “issue of corporate governance” inability to manage the financial situations, and high stress from the PE investors and moneylenders to settle the loan amount.
He was also charged by the Income-tax Department on black money. The issue of corporate governance, irregularity, and violence of laws in the fund transfer is the key point behind to end his life.
Many questions began after the suicide of V. G. Siddhartha.
How can Indian startups maintain the trust of foreign and Indian investors?
A big and real unanswered question is raising with time in the Indian economic ecosystem.
Save tax by anyway and always try to find a way to manage it. This is the psychology that must need to change to create the future of Startups India.
In public, a general opinion appeared that the Financial institution’s heads and corporate leaders created big scandals, and misused the funds. Many companies are now facing charges of money laundering and fund transfer.
If registered firms are facing these problems, then how can investors trust the startups that they will do everything great and not divert the funds?
To control this worsen condition, Indian corporate leaders and the bankers must need to follow the basic ethics of corporate governance.
Rating agencies and Auditing firms just doing their business to handle their client’s business goals and get paid. They all need to do the right things in the right way.
Nira Radia tape case high highlighted the link between senior journalists, politicians, and corporate houses. These links must need to end up with immediate effect.
So, in general, everything is not well in all corporate houses.
The hope concerns will short outed soon, and the confidence of investors maintained as needed. Many big respected personalities in Indian corporates and they must come out, and create a nationwide battle against the unethical practices.