New Company Law Bill in Winter Session: Minister

Coimbatore, Oct 19 (UNI) Union Minister of State for Law and Justice K Venkatapathy today said the new Company Law Bill will be tabled during the Winter Session of Parliament beginning next month.

Speaking on ''Quality of Legal Rules Protection of Shareholders'' at the Karunya University Campus here where he inaugurated a two-day national-level ''Finance Enclave,'' Mr Venkapathy said the new law aimed at striking a fine balance between freedom and accountability.

It would also provide for a better and stronger mechanism for protecting investor interest.

A package of reform measures to liberalise, regulate and develop the securities market was introduced in India in the 1990s. The measure was aimed at improving efficiency, enhancing transparency, preventing unfair trade practices and bringing international standards to the Indian market.

The Indian securities market stood shoulder-to-shoulder with most developed markets in ensuring fair,efficient and transparent trading, investor protection and reduction of systemic risks.

Establishment of Securities and Exchange Board of India (SEBI) was another significant step by the Union Government to regulate stock markets and ensure investor interests.

Stating the Company Law 1956 worked well for more than half a century, Mr Venkatapahty said liberalisation and emergence of public participation in government companies through disinvestment or emergence of joint sector undertakings in diverse fields such as refineries and power generation, certain inadequacies in the existing law were pointed out making necessary a new law.

He said though the government was vigilant and would not hesitate to take further steps to ensure continued protection of shareholders as the situation warranted, investors must exercise caution before investing their hard earned money.

A large number of quality shares were available in the market to suit the needs of small investors, giving a fair return on their investment, the Minister said.

UNI