Skip to main content

Ministry, SEBI Panel to Study Comments on Changes to Co Law

The government is likely to set up a committee comprising representatives of the ministries of law and corporate affairs, Sebi, and RBI to study more than 3,000 objections and comments received on the report of the high-level panel formed earlier to review the issues arising out of implementation of the Companies Act, 2013.
In its report submitted last month, the panel had suggested more than 50 changes in the law.

The government had then called for public comments on these recommendations.

“We'll shortlist the com ments before we move forward with amendments and clarifications on Companies Act, 2013. We'll move cabinet to get amendments cleared, after which the amendments bill will go to Parliament,“ a senior government official said.

The official further said, “Since it's a multi-ministry exercise and requires professionals from various fields, the corporate affairs ministry has suggested that a committee be formed to look into the comments and suggestions received from people as we want to sort out all issues India Inc has raised.“

Last year, the government had made 16 key amendments to the Act along with passing more than 45 “removal of difficulty“ or ders.

To improve the ease of doing business in the co untry and harmonise va rious laws, the panel hea ded by the secretary of the corporate affairs ministry had proposed an increase in the limit on sweat equity for startups to 50% from 25% of paid up capital to enhance the incentives for inno vators.

Economic Times, New Delhi, 05 March 2016

Comments

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...

Luxury carmakers urge clarity on GST rates to boost festive season sales

  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...

Sebi proposes tighter norms for green bond third-party reviewers

  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...