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The Naresh Chandra Committee was constituted by the Government of India in August 2002 to examine various corporate governance issues, particularly in the wake of corporate scandals such as Enron and WorldCom. The committee was expected to enhance the framework of corporate governance in India, particularly in the context of financial disclosures, the responsibilities of auditors and the role of independent directors. The committee’s recommendations are especially relevant to the banking and financial sector due to the sector’s critical dependence on trust, transparency, and financial accountability. The Naresh Chandra Committee focused on improving the financial reporting process, strengthening the independence and oversight of auditors, and enhancing the effectiveness of the Board of Directors. These recommendations, though made in a broader corporate context, hold specific importance for the banking and financial services sector where corporate failures can have systemic impacts. One of the key concerns the committee addressed was the role of auditors and the independence of audit firms. The committee noted that audit failures had contributed to corporate misgovernance and financial fraud. In the banking ________ ___ _____ _______ ____ __________ ___ _________ ________ ______ _________ ______.
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