The process of liberalization and deregulation was unleashed by the new economic policy of the Government of India during 1991. Reforms in financial sector opened the doors to the private sector Banks in the country and it paved way for the new generation banks. Customers welcomed these financial institutions and they were awaiting for this opportunity to make themselves comfortable with the services provided by private sector banks after experiencing poor services from Nationalized Banks. The unethical practices and increased corruption kept the management of different organization to fleece their customers which in turn resulted in the closing down of some big companies. The need of Corporate Governance was felt during the securities scam of Harshad Mehta’s in April 1992 involving a large number of banks and it resulted a drastic change for the first time in stock market that shook the confidence of investors. The practices of the Corporate Governance has to be constantly evaluated because of the uncertain and complex business environment in India.