Parliament Thursday gave its nod to the new Companies Bill that seeks to enhance compliance, transparency, encourage self-regulation and make corporate social responsibility mandatory.
The Rajya Sabha passed the bill Thursday. The Lok Sabha had done so on Dec 18, 2012.
The bill will now go to President Pranab Mukherjee for his assent. The new legislation will come into effect with notification by corporate affairs ministry after the presidential assent.
The new bill will replace the nearly six-decade-old Companies Act of 1956.
Replying to the debate on the bill in the Rajya Sabha, Corporate Affairs Minister Sachin Pilot said it sought to bring India's corporate governance in sync with the changing business environment of the 21st century.
Pilot said the bill was progressive and the main focus is on enhancing transparency and compliance.
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"For the next two to three decades, this (new legislation) will bring positivity in the economy," said Pilot adding that the views of all the stakeholders, including industry chambers, have been taken into consideration.
The bill was first introduced in the Lok Sabha in August 2009. It was referred to the standing committee on finance a month later. It was brought back to the Lok Sabha as Companies Bill 2011, but again referred to the standing committee.
The bill was cleared by the Lok Sabha after the standing committee submitted its report in June 2012.