• Skip to content
  • Skip to navigation

Grant Thornton uses cookies to monitor the performance of this website and improve user experience

To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.

Global site
  • Global site
  • Algeria
  • Botswana
  • Cameroon
  • Egypt
  • Ethiopia
  • Gabon
  • Guinea
  • Kenya
  • Libya
  • Malawi
  • Mauritius
  • Morocco
  • Nigeria
  • Namibia
  • Senegal
  • South Africa
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe
  • Anguilla
  • Antigua
  • Argentina
  • Aruba, Bonaire, Curacao and St. Maarten
  • Barbados
  • Bolivia
  • Brazil
  • British Virgin Islands
  • Canada LLP
  • Canada RCGT
  • Cayman Islands
  • Chile
  • Colombia
  • Costa Rica
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Honduras
  • Mexico
  • Montserrat
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Puerto Rico
  • St Kitts
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad & Tobago
  • United States
  • Uruguay
  • Venezuela
  • Turks & Caicos
  • Afghanistan
  • Australia
  • Bangladesh
  • Cambodia
  • China
  • Hong Kong
  • India
  • Indonesia
  • Japan
  • Korea
  • Malaysia
  • Mongolia
  • Myanmar
  • New Zealand
  • Pakistan
  • Philippines
  • Singapore
  • Taiwan
  • Thailand
  • Vietnam
  • Albania
  • Armenia
  • Austria
  • Azerbaijan
  • Belarus
  • Belgium
  • Bosnia and Herzegovina
  • Bulgaria
  • Channel Islands
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy - Bernoni
  • Italy - Ria
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macedonia
  • Malta
  • Moldova
  • Monaco
  • Netherlands
  • Northern Ireland
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • Serbia
  • Slovak Republic
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Tajikistan
  • Turkey
  • Ukraine
  • UK
  • Uzbekistan
  • Bahrain
  • Egypt
  • Jordan
  • Kuwait
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates
  • Yemen
  • Lebanon
Grant Thorton Logo

Grant Thornton Logo Grant Thornton logo

Contact us
  • Insights
  • Industries
  • Services
  • Events
  • Budget 2021
  • Careers
  • L&D Academy
  • Media
  • Country corridors
  • Consumer, Retail & E-commerce
  • Healthcare and Life Sciences
  • Automotive and Manufacturing
  • Media, Technology and Entertainment
  • Not for profit
  • Real Estate and Construction
Healthcare and Life Sciences Home
Our publications BillionFit: Technology redesigning healthcare
Our report, BillionFit: Technology redesigning healthcare, navigates through key trends in disruptive technologies in healthcare, with a focus on India. This paper captures India’s Healthcare and Fitness scenario from a technology perspective, while providing some insight into the recent developments globally.
Automotive and Manufacturing Home
Thought Leadership Auto Bytes January 2020
This edition of Auto Bytes focuses on what will shape the future of the sector.
Media, Technology and Entertainment Home
Publication The Digital Accelerate – New regulatory framework implementation guide
The publication summarises the transition process mandated by TRAI for digital television services, and how consumers can select their subscriptions.
Real Estate and Construction Home
Report Improving transparency in secondary real estate market
Holistic pan-India assessment on various parameters in the secondary market & direct impact of a regularised secondary market on stakeholders.
  1. Grant Thornton Bharat
  2. Press releases
  3. 2014
  4. Companies Act will require lesser regulatory interventions, says Govt

Companies Act will require lesser regulatory interventions, says Govt

01 Nov 2014
  • Companies Act will require lesser regulatory interventions, says Govt

Ministry of Corporate Affairs (MCA) Additional Secretary M J Joseph on Friday said that the Companies Act 2013 prescribes lesser regulatory interventions with the aim of improving corporate governance.

“It has incorporated new provisions that reflect globally accepted best corporate governance practices, and best regulatory frameworks,” Joseph said, while addressing members of the Bangalore Chamber of Industry and Commerce (BCIC) and Institute of Companies Secretaries of India (ICSI), Bangalore Chapter, on Friday.

He noted that for private companies, it has been proposed to allow exemptions/modifications from the provisions relating to types of share capital and voting rights; certain requirements for acceptance of deposits, limits on number of audit, restriction on powers of the board and certain aspects of related party transactions.

“We expect this exercise to be completed during the ensuing winter session of parliament. The draft notifications broadly seek to extend exemptions available to relevant companies under the 1956 Act with minor modifications keeping in view the intent of the new law,” Joseph said,

The Ministry has proposed under section 462 various exemptions for private companies and other classes of companies from some compliance related requirements of the new law. The draft notifications proposing these exemptions are required statutorily to be placed first in both houses of Parliament for its approval before final notification in the gazette.

For the government companies including in certain cases, to wholly-owned government companies, exemptions/modifications are proposed from provisions relating to disqualification of directors in certain cases, rotation of directors, nomination and remuneration committee, related party transactions and others.

The Ministry is presently examining suggestions relating to applicability of private placement provisions on offer of foreign currency convertible bonds (FCCB) and foreign currency non-convertible bonds to foreign nationals, remuneration of professional and non-executive directors under Schedule 5, specification of secretarial standards under the Act, manner and frequency of approval of related party transactions by the audit committee and thresholds for fraud reporting by auditors to the central government.

BCIC Finance and Corporate Affairs Expert Committee Chairman N Venkatakrishnan said, “An essential issue is that one broad brush is required irrespective of different types of companies to have common procedures. Treat MSMEs differently and provide them a better platform.”

“As it took 57 years for government to amend new Companies Act 2013, still there is lot of uncertainty,” Venkatakrishnan added.

Wipro Technologies GM – Financial Reporting & Assurance Hemanth Vepa said, “Companies Act 2013 contains significant changes to financial reporting disclosures and audit requirements for companies which will need to address important matters such as consolidated accounts, internal financial controls, fraud reporting, auditor appointment and rotation, among other changes.”

Grant Thornton Partner Yogesh Sharma said, “In many ways the corporate governance principals laid down by the companies act is the visionary and focussed on investor protection. However, implementation will continue to be a challenge considering that this is one act for without differentiating the nature, size and needs of different corporate affairs.”

Deloitte Haskins and Sells Partner V Balaji said, “MCA has provided the deferment on reporting on internal financial controls to the auditors. However, the same has not been extended to the companies, especially the boards of listed companies.

“The current exemption provided to companies who do not have subsidiaries but have only one or more associates or joint ventures is available only for the financial year ending March 31, 2015. Such exemption needs to be considered for succeeding financial years too,” Balaji added.

The article appeared in the Deccan Herald. The article can be found here.

  • Follow us on Facebook
  • Follow us on LinkedIn
  • Follow us on Twitter
  • Follow us on YouTube
CONNECTclose
  • Locations
  • Contact us
  • Global reach
ABOUTclose
  • About us
  • Careers
  • Press
  • Corporate Social Responsibility
LEGALclose
  • Privacy
  • Disclaimer
  • Site map

© 2021 Grant Thornton Bharat LLP – All rights reserved.

    • EN
    • Sign in
    • Contact us
    Sign in with LinkedIn Close
    Sign in with LinkedIn to save articles to your bookmarks.
    Privacy policy