Namrata Kath Hazarika | 13 Feb, 2012
The government will likely pass the new Companies Bill in the next Budget session, which was strongly opposed by the Opposition and UPA ally Trinamool Congress in the Winter session of the Parliament.
"I hope so because in the presence of Finance Minister, Pranab Mukherjee, there was a meeting with senior leader L K Advani, Sushma Swaraj, Arun Jaitley, etc, where they said that they will let it go to the standing committee again. They will send us the report immediately. And, they will co-operate in passing the Bill," the Corporate Affairs Minister Veerappa Moily said on the sidelines of the PHD Chamber function in New Delhi on Saturday.
He added that there is a possibility that in the next budget session the Bill will be passed.
Earlier, the Opposition and UPA ally Trinamool Congress said that this was virtually a new Bill with considerable alterations to the earlier version. As a result, it had to be sent back to the Committee. The Bill will introduce new rules, covering areas such as corporate social responsibility (CSR), class action suits and a fixed term for independent directors. It also proposes to tighten laws for raising money from the public.
The Bill also seeks to strongly check insider trading by company directors or key managerial personnel by treating such activities as a criminal offence.
Further, enumerating his view on the investment climate in India, Moily also said, "During January first week onwards the investment climate is picking up. It is very positive, the negative perception is already gone. I think this and the next year I can guarantee that we will have a best of time as you know we had from 2004-2009 the best of the development. The GDP will be higher and we will definitely cross 9 percent and the climate will be better."
He added that the majority of foreign companies are investing in India as a lot of diverse investments opportunities are available in the country.
Moily further said that the equity and the bond market in India are underdeveloped and not even 5% of savings flow in the capital market. It is very essential to promote investment literacy in the Country.
The minister informed that India has improved its position in literacy from 66.47% in 2007 to 69.43% in 2011.
"India is the second most attractive destination for the foreign investors and is the 8th largest economy in the World. And, time has come when investment in shares should be built on credibility," Moily added at length.