Industry chamber Assocham has called for a legislation to make provisions for funding of elections through budgetary allocation and make corporate donations transparent regulated by Securities and Exchange Board of India (Sebi).
Assocham has suggested that election funding by corporate should be made "legal" and transparent and the whole process be regulated by Sebi.
In the paper 'Funding of the Political Parties for election Purposes', which was submitted to Prime Minister Manmohan Singh, the industry body has emphasised the need for a legislation to ensure cleaner, freer and transparent elections.
"Market regulator Sebi should impose a certain ceiling on corporate's net profits for extension of such donations to political parties of their choices to prevent them exceed the prescribed limit for any motive," the chamber said in a statement.
Pointing out that listed corporations should inform the Sebi about the donations they intend to make, Assocham has said that all such funding should be approved by their respective corporate boards. In the case of unlisted companies and partnerships, the funding moves should be approved by the IT department.
"Political parties must be compelled by law to publish week-by-week the donations they receive from corporates and the public. They should also give a consolidated list of donors within three months of the end of election process," the statement noted.