Regulatory reform after polls for ease of doing business, better corporate governance

livemint.com:

NEW DELHI : The ministry of corporate affairs will look into making changes to rules and regulations issued under the Companies Act and other laws, said a person informed about discussions in the government, in a post-election push on ease of business. The changes will be based on suggestions from the public and self-regulators of accountants and company secretaries, which arre expected by the middle of March. Regulators like the Insolvency and Bankruptcy Board of India (IBBI) and the National Financial Reporting Authority (NFRA) will make the changes in regulations that are needed, the person said.

The ministry has already set up groups of officials to look into specific aspects of the regulatory change and has requested the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI) for suggestions, the person said. The review is based on an announcement that finance and corporate affairs minister Nirmala Sitharaman made in her FY24 budget a year ago. The move is broadly aimed at improving ease of doing business and corporate governance.

All rules are being reviewed – whether they are related to accounting, incorporation of companies and LLPs, liquidation, or striking off of defunct companies, the person said. “Public consultation is on. The ministry has formed groups to look into some of the rules.

Conferences are being held by Regional Directors and the Director General of Company Affairs who will receive comments from stakeholders. By 15 March, if suggestions come to the ministry, there will be time to discuss at official level and after the elections, it will be taken forward," said the person who spoke on condition of anonymity. While the review is mainly of rules