Prioritising investor protection in the backdrop of corporate frauds and failures worldwide, the newly formed Company Affairs Ministry on Wednesday said it will expedite the process of putting in place Competition Commission, National Company Law Tribunal and a comprehensive Companies Act.
Minister of State for Company Affairs Prem Chand Gupta said his ministry would work closely with market regulator SEBI to safeguard the interests of investors.
"There is no clash (between DCA and SEBI). There is perfect harmony... The main purpose must be achieved and that is to protect the investors," Gupta told reporters after assuming office.
He said the ministry will not hesitate to review the existing guidelines to ensure that companies raising money from the market do not dupe investors.
Citing an example, he said "Cyberspace was initially a construction company but later changed its name to claim itself as a IT company. It went on to dupe investors over Rs 800 crore."
Changes in the provisions for change of name and registration may be reviewed, he added.
Spelling out his agenda, he said the ministry is in the process of drawing up a comprehensive Companies Bill which would be updated according to the latest developments and obsolete provisions removed.
{{/usCountry}}Spelling out his agenda, he said the ministry is in the process of drawing up a comprehensive Companies Bill which would be updated according to the latest developments and obsolete provisions removed.
{{/usCountry}}He said Government will put in place Competition Commission and NCLT by July after sorting out legal hurdles.