SME Times News Bureau | 07 Mar, 2020
Industry body FICCI has welcomed Cabinet's recent decision to amend
the Companies Act, 2013 to decriminalise bona fide defaults
under the Act as well as permit Indian companies to list on stock exchanges in
foreign jurisdictions.
Sangita Reddy, President, FICCI said,
"Overseas listing would pave the way for a liberalized regime promoting
Indian economy on the global stage. Indian corporates will be able to access
funds from deep and mature markets and scale their businesses further
benefitting from reduction in the cost of capital and better valuations."
FICCI believes that it will not only increase the
competitiveness of the Indian industry, but also render strategic benefits such
as improved governance practices, awareness of 'Brand India' and also allow
Indian companies to pursue inorganic opportunities abroad.
New-age companies will especially benefit
through access to a large pool of institutional capital & investors who
have deep experience in fast-growing technology sector and keen to invest.
Sangita Reddy further
added that FICCI looks forward to working closely with the Government for
devising a framework that facilitates inflow of capital into the country.
Referring to the other amendment approved by the
Cabinet yesterday, Sangita Reddy lauded Government's
initiative to decriminalise non-compliances of minor, technical or procedural
nature with an objective of facilitating and promoting ease of doing business
and ease of living in the country.
She said that FICCI has been engaged with the Ministry
of Corporate Affairs for removing criminality under the Act for inadvertent or
procedural lapses, especially in the first instant.
Rationalisation of penal provisions in the
Act would increase the attractiveness of India as an investment destination and
also provide relief to foreign investors from long-drawn judicial processes in
cases of defaults.
At the same time, FICCI is fully cognisant
that serious non-compliances, wilful disregard of procedure or repeated
misdemeanours, especially where public interest is concerned, need to be
deterred and would continue to support this laudable initiative.