Moily hopes new Companies Bill to be passed shortly

MUMBAI, Apr 23: Union Minister for Corporate Affairs M Veerappa Moily today expressed the hope that the much-awaited new Companies Bill, which seeks to replace the Companies Act 1956, will be passed in the current session of Parliament.

“We would like to see the new companies bill to be passed in the current session of Parliament,” Moily said addressing the ICSI Capital Markets conference here.

The new Companies Bill, which will replace the Companies Act 1956, also seeks to give a fillip to the cause of corporate social responsibility (CSR) and corporate governance.

Besides, the bill will make it mandatory for firms to maintain their documents in electronic format. It also introduces the concept of e-governance, makes provision for encouraging ethical corporate behaviour and rewards employees for their integrity.

On initiative towards creating awareness among investors and promoting good governance in capital market, Moily said, “We are having series of discussions in five metropolitan cities on investments and governance. We are going to prepare a road map as to how the investment could be boosted up, what are the hurdles and how to make business easy in this country”.

On the National Corporate Governance policy, Moily said,”the draft policy is already on its way. The draft is expected to be submitted within six months period.

The ministry of corporate affairs had last week set up a committee under Godrej Group chairman Adi Godrej to suggest a framework for the “highest quality” of corporate governance in the country.

According to the ministry, the committee will suggest a “comprehensive policy framework to enable corporate governance of the highest quality in all classes of companies without impinging on their internal autonomy to order their affairs in their best judgement.

“Even though we have given him (Adi Godrej) time of six months, he has said that he will submit the draft within six months,” Moily said.

The minister pointed out that capital market is one of the significant aspects of every financial market. A developed dynamic and vibrant capital market can immensely contribute to speedy economic growth and development.

“Confidence in corporate India is still very high and we need to maintain it in future too. It has been noted that financial sectors are investing more and more in Indian markets and they play an important role in growth of India. The sector has emerged as one of the most prominent sector and it is estimated to add 15 million jobs in market by 2020,” Moily said.

Explaining the role of Government in ensuring market growth, Moily said Rs 6.2 crore has been invested for development of infrastructure, he added.

The Institute of Company Secretaries of India (ICSI) is observing capital market week on the theme, ‘Capital Market Growth Drivers’ from April 23 to April 28 across the country. (PTI)