Research Article | Open Access
Challenges of Corporate Finance Management in Indian Context: A SurveyBased Study of Experts’ Opinion
Ajay Sharma
Pages: 9928-9932
Abstract
In the Indian context, corporate finance management faces several unique challenges. One of the key
challenges is the complex regulatory environment. India has stringent regulations and compliance
requirements, which can be overwhelming for companies to navigate. These regulations cover areas such
as foreign investment, taxation, capital markets, and corporate governance. Corporate finance managers
need to stay updated with the ever-changing regulatory landscape to ensure compliance and avoid
penalties. Another significant challenge is accessing capital and managing funding requirements. Even
though India has a strong banking system, getting money can be difficult, particularly for small and
medium-sized businesses (SMEs). It is challenging for businesses to raise money for working capital
requirements or expansion due to a lack of accessible capital, high-interest rates, and collateral
requirements. Additionally, managing cash flow effectively becomes crucial to sustaining operations and
meeting financial obligations. Currency volatility and exchange rate fluctuations pose another challenge
in corporate finance management. India's economy is subject to external factors such as global economic
conditions, trade policies, and geopolitical tensions. Fluctuations in the currency value can impact
import/export costs, profitability, and debt servicing for companies with foreign currency exposure.
Managing currency risks through hedging strategies and maintaining adequate reserves become
imperative to mitigate potential losses.
Keywords
Regulatory Environment, Compliance Requirements, Capital Markets, Corporate Governance, Funding Requirements, Cash Flow, Currency Volatility, Talent Acquisition, Talent Retention