'Govt against strict regulation on corporate sector'

New Delhi, June 25 (UNI) The Government is against strict regulation on the corporate sector and will act more as a facilitator for the market driven economy.

''We are opposed to any kind of stringent policing on the corporate sector. It is a matter which should be left to the company and its shareholders,'' Minister for Corporate Affairs Prem Chand Gupta said at a conference on 'Corporate Governance and Financial Reporting Norms' here.

This was a contrast to Prime Minister Manmohan Singh's advise to India Inc to trim salaries of its top executives.

Asked Mr Gupta's view on Dr Singh's statement, he said the man who started liberalisation in the country cannot call for regulation.

''The Prime Minister's advise should be seen in an entire perspective where India moves towards inclusive growth in which people from all the stratas should be benefitted,'' the Minister added.

After being deferred for a number of times, the bill for the new Company Act will be placed in the Parliament by year-end, he said.

''The new Company Act fixes the strength of Independent Director to one-third of the number of Board of Directors.'' The J J Irani Committee, incorporated to formulate policy guidelines to be implemented in the new Company Act, had suggested earlier that Independent Directors should constitute 33 per cent of the total Board of Directors in a company.

However, SEBI guidelines fix Independent Directors' limit to 50 per cent.

Mr Gupta said SEBI is a ''sectorial regulator'' and all the listed companies need to comply with its guidelines.

Whereas, the Company Act is the ''mother bill'' which regulates all the companies whether listed or not, he added.

The Minister said, a committee has been formed to suggest the government in adopting the best international accounting standards.

''The Government has notified 29 accounting standards and we are today closer to the best global practices,'' Mr Gupta said.

There are attempts to study differences and reconciliation of requirements under IFRSs, US GAAPs and Indian GAAPs, he added.

UNI