Most Damodaran panel suggestions taken into account in new Companies Act

NEW DELHI: The Corporate Affairs Ministry today said that most of the recommendations made by Damodaran panel, that looked into ways to improve business climate, have been taken into account in the new Companies Act.

An expert committee, chaired by former Sebi chief M Damodaran, was set up by the ministry to suggest measures for a road map for improving business climate in the country.

In a written reply to the Lok Sabha, Corporate Affairs Minister Sachin Pilot said that most of the recommendations have been taken into account in the Companies Act, 2013.

The committee had made recommendations in five broad categories -- legal reforms, regulatory architecture, boosting efficacy of regulatory process, enabling MSMEs, and addressing state level issues.

Pilot said that the panel's report was also shared with different ministries and departments for implementation of those aspects which fall under their jurisdictions.

The Damodaran panel was set up in August last year. Among others, the committee had suggested simpler drafting of rules to avoid leaving room for interpretations, greater autonomy to regulators, transparency in selection of heads for regulatory bodies and faster resolution of disputes through arbitration mechanism and consent settlements.