New Companies Act to adopt global best practices norms

February 16th, 2009 - 5:39 pm ICT by IANS  

Manmohan SinghNew Delhi, Feb 16 (IANS) The revision of the Companies Act of 1956 would enable adoption of internationally accepted best practices, said External Affairs Minister Pranab Mukherjee while presenting the interim budget on behalf of Prime Minister Manmohan Singh Monday.

“The government undertook a comprehensive revision of the Companies Act, 1956 to make it a compact law that, while responding to the changes in the business environment, would enable adoption of internationally accepted best practices,” he said.

“The Companies Bill, 2008 based on this exercise, has been introduced in parliament,”Mukherjee said while talking about the financial sector reforms that his government had taken, including those to “deepen and widen the securities market and strengthen the regulatory mechanisms for these markets”.

He said the government had also initiated a process of amalgamation and recapitalisation of regional rural banks (RRBs), which have a negative net worth.

“The government has contributed Rs.652 crore (Rs.6.52 billion) for capitalisation of RRBs up to December 31.”

The minister also said that the technological, legal and institutional reforms taken up by the administration have led to significant improvement in the financial health of public sector banks.

“The asset quality has improved and non-performing assets (NPAs) have declined considerably from 7.8 percent on March 31, 2004 to 2.3 percent on March 31, 2008,” he said.

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