The new Companies Bill, being drafted by the Union Corporate Affairs Minister M Veerappa Moily, former law minister, may come up for consideration before the next monsoon session of the Parliament to replace the half a century old Companies Act of 1956. Indicating this in Mysore on Monday, Moily said the bill will go before the Cabinet for its approval shortly.
“The new Companies Bill, I am drafting now, will be approved by the Cabinet and will come up before the next monsoon session so that we have a new corporate structure in the country,” he hoped. “There is a feeling that running a business in India is difficult. Bureaucracy is affecting, making business not the easiest.”
We want to see that this bill ensures setting up business in the country becomes the easiest. No hurdles whatsoever will come in the way. We are going to work out on this,” he said.
Moily disclosed that a stringent legislation will be brought forth to curb the menace of money lending companies which dupe small investors in the country.
“It would be good to bring about a stringent law so that the interests of small investors are protected,” he said referring to micro-financing companies that disappear overnight. “Stringent action against errant companies involved in violating rules will have to be taken,” he said referring to the money lending companies.
“We want to ensure that sustainable development takes places in the country’s corporate sector so that the growth is healthy. We are going to do it,” he said adding as this was one of the key issues of corporate governance, the bill would be a comprehensive one. The Minister was inaugurating the new zonal office of the Corporation Bank, shifted from Hassan to Mysore.
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The banking industry in the country had exhibited its strength during last year’s economic and financial recession which affected countries in Europe and the US most. Many big banks had gone bankrupt in those countries. There was some pressure on the Chienes banking industry as well.
“The one country where not a single bank was affected is India. This characterises the strength of the banking system of the country. Even in Europe, they speak highly of the Indian banks on Monday,” Moily said praising the regulatory measures of the Reserve Bank of India and the role played by nationalised and private banks in facing the global impact.
Nationalised banks hold 51.2 per cent of the deposits. Eighteen Indian banks figure in the 500 top global banks’ list. One sector in which the country tops is banking. This is one of the biggest successes of bank nationalisation, he averred adding “we have to further improve our position.”
Banking system should be hassle-free. It should gear up to meet the future changes as its role had undergone a change on Monday. “Instead of business-enablers, they should become business-drivers,” the Union Minister said.
Praising the Corporation Bank established 105 years ago in Udupi with a small capital of little over Rs 38 and which has on Monday become one of the leading nationalised banks of the country, Moily said the fact that five of the chairmen of nationalized banks are from Corporation Bank on Monday demonstrates its efficient management.