According to him, time has matured for India and India Inc. to come out clean on its corporate governance practices as these have been tainted in recent past, resulting into restricted FDIs in to the country especially in its MSME sector, particularly from countries such as France, Germany, Sweden and the like in which these nations follow stringent corporate governance norms.
Mr. Khaitan pointed out that in the last two years, India witnessed an increase of over 45% in corporate frauds which spoiled its reputation in terms of attracting global investments from host of economies of scale.
Mr. Govil in his address informed that an intensive research work is going on in the Department of Revenue on shell, bogus and dormant companies and the initial findings of this research has concluded that India needed to indulge into policy tightening front so that possibilities of corporate frauds in future are plugged for good and such companies are not allowed to function whose objectives and intention are mala-fide.
Mr. Dubey in his observations warned the India Inc. that all electronic and any other such kinds of transactions of all companies are being strictly monitored by the relevant departments and urged the companies to better stay on to the right side of the law as corporate functioning with mala fide intend would invite severe penalties and punishment in case corporate frauds are detected under the new laws and dispensation.
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