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Companies Bill in next session of Parliament

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BS Reporter New Delhi
The government is going to introduce the new Companies Bill in the monsoon session of Parliament. The Bill is presently being drafted by the Law Ministry.
 
"We have already obtained views of different ministries. At present, we are in the process of framing the Bill," Company Affairs Minister Prem Chand Gupta told newspersons on the sidelines of a national seminar on "State of Competition in the Indian Economy".
 
"It is a massive exercise and we want a law that will cater to the requirements of next 20 years and not the past 20 years," Gupta said, adding that the government wants a law that is simple and compact.
 
"The present Company Law has 786 provisions and our effort is to reduce these by half," Gupta said.
 
Gupta also said his ministry is going to bring the amendment proposal for the Competition Commission of India before the Cabinet next week. "The necessary amendment to the Competition Act will be introduced in Parliament in the second half of the Budget session," he said.
 
Under the amended Competition Act, an appellate tribunal will be set up to appeal against the judgement of the Competition Commission. A retired Supreme Court judge will head the tribunal. There will be two additional members in the tribunal from legal profession. "The tribunal will have a collegium system, not a branch system," Gupta said.
 
Gupta said his ministry is taking a view on the mandatory rating of companies before an initial public offer. "Rating of companies before IPOs is a good idea. At present, there are two divergent views on the subject. Some feel it is an expensive process. We are studying both views and will go with the majority view," he said.
 
The minister added the government has received some proposals for use of Investor Education and Protection Fund.
 
"We want more people and Non-Government Organisations to come forward so that investors can be educated and informed on where to put their money," he said.

 
 

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First Published: Mar 15 2007 | 12:00 AM IST

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