New Delhi, Oct.28 (ANI): Union Minister for Corporate Affairs Salman Khurshid here on Wednesday said that the Companies Bill, hich is presently before the Parliament, will provide for compensation to investors
"What we don't have available within the Company Law framework is that we don't have any system for compensation either for the individual or a group of share holders or for any class of share holders or investors. That's the major lacuna that we are trying to address in the Bill (Companies Bill) in the form in which it is before the parliament," said Salman Khurshid while attending a workshop on The Companies Bill, 2009: 'Class Action Suit and Compensation' as the chief guest.
"There is need for a major nationwide study on the minds of the Indian investors, the attitude of the Indian retail investor, the small Indian investor what prevents him or her from coming to the capital market. Why are very small percentages of household savings which are very high in terms of global standards and very small percentage are getting into the capital market," said Khurshid.
In India, the concept of compensation is yet to take root. The Companies Act, 1956 does not contain any such provision.
The Companies Bill 2009 was introduced in the last session of Parliament and is under consideration with the Standing ommittee. (ANI)