Corporate Frauds Biggest Financial Risk for the Investors

Today's wodd is the corporate world. Almost 70 to 80% of the trade and commerce are through the corporate world. As on September 2070, fhere were 7633 companies listed on the Mumbai Stock Exchange. These corporate have to follow various Rules and Regulations framed by SEBI, Companies Act and other statutes. Stock Exchanges etc, In spite of that, if a fraud takes place, it a matter of great shame.

The shareholders or the investors are the worst sufferers if any corporate fraud takes place.

They are the major capital contributors and as a result of the corporate fraud, overnight they lose all their investments. After a great research like listening to various analyst, going through the company's past history, going through the published data of the company, they invest their hard earned money in a corporate, in the hope of getting higher returns, however, the corporate frauds simply makes all their calculations wrong and instead of getting higher returns, they lose their investments also. Paper has also discussed the Case Study of Satyam.