New Companies Act by mid-2005

The new bill will have 289 sections and sub-sections instead of the present 781 and only a few schedules instead of 15. The ministry will start forming draft rules in 15-30 days after it receives responses from chambers of commerce, company stakeholders and public at large on the 15 schedules.

The ministry had given three months time to all concerned to respond after the concept paper was introduced in the first week of August. The last date to post feedback on the concept paper is October 31. The minister said that adequate time would be given to all stakeholders to comment on the draft rules.

Gupta added there was a need to regulate corporate governance. 8216;8216;Corporate failure can erode shareholders trust, affecting the businesses of honest firms as well,8217;8217; he said. He welcomed the formation of National Foundation on Corporate Governance and said India was taking steps towards achieving good corporate governance. Gupta also welcomed suggestions of Michael Carter, World Bank country-director-India. Carter made special references to the scope for improvement in enforcement and legislation of regulatory norms.

Talking of Indian stock exchanges, MCA secretary Komal Anand said that BSE came into existence in 1875, much before Tokyo exchange.