The ministry of corporate affairs (MCA) has started a round of consultations with the law ministry on the feasibility of setting up a National Company Law Tribunal (NCLT) in the next one year. While talking to FE, corporate affairs secretary R Bandyopadhyay said the government will accept the directives of the Supreme Court but will work out the logistics involved.
“The government will accept the directives of the Supreme Court but then what will be the consequential changes needed that has to be done,” Bandyopadhyay said. When asked about the time frame when NCLT will be set up, Bandyopadhyay said, “Everybody is speaking in terms of one year because the normal system is like that.”
NCLT was first mooted in the Companies Act, 2002 to take over the functions Board for Industrial and Financial Reconstruction, the appellate authority for Industrial and Financial Reconstruction and the Company Law Board in winding up of companies. It is expected to bring about key changes in the resolving corporate disputes.
Bandyopadhyay said MCA was also looking to bring about widespread industry awareness programmes through an India Investor Week starting July this year. It aims to not only expand the investor base but also encourage people to diversify away from the traditional assets like gold.
The government will organise 3,000 programmes across the country by roping in professional institutes like Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India and the Institute of Company Secretaries of India. Even industry chambers like CII, Ficci, Assocham and PHD Chamber would be a part of this exercise.
“It is the duty of the ministry to inform people of the risks involved,” Bandyopadhyay said. He added that the initiative is in part of a larger effort by the ministry to function in a transparent manner. “Enlightened regulation and inclusive growth are the two mottos of this ministry,” Bandyopadhyay said.
In the aftermath of the Satyam scandal the ministry of corporate affairs has adopted several means to create accountability among the corporate houses and organise investor education programmes. In December 2009 the ministry for the first time came out with a voluntary set of guidelines on corporate governance for India Inc. This is separate from the Sebi’s listing agreement.
