Committee for Reforming the Regulatory Environment for Doing Business in India
The Ministry of Corporate Affairs has constituted a committee under the chairman ship of M.Damodaran, former Chairman, SEBI for reforming the Regulatory Environment for doing Business in the country. The committee will conduct an in-depth study in to the entire gamut of regulatory framework and prepare a detailed roadmap for improving the climate of business in India within a period of six months. It is noteworthy that easing of business environment mandates extensive examination of regulations in different areas of root functioning such as financial reforms, governance reforms, liberalized policy framework, process reforms etc.
The constitution of committee follows a recent Report of World Bank and the International Finance Corporation, entitled “Doing Business 2012: Doing Business in a very transparent World” that ranks india in the 132nd position among the sample of 183 countries.
i) Faster incorporation/registration of companies through fully electronic MCA-21 Registry provided;
ii) Companies allowed maintaining records and hold meetings through e-governance mode;
iii) Companies empowered to function in a manner which is ‘self-regulated with disclosures/transparency’ rather than ‘Government/regulatory approval based regime’;
iv) Concepts of ‘One Person Company’ and ‘Small Company’ recognized to allow new entrepreneurs to take advantage of corporate form of business;
v) Faster mergers and acquisitions including short form of merger and cross border mergers allowed;
vi) Time bound approvals through National Company Law Tribunal (NCLT); and vii) Summary liquidation process for a class of companies provided.