New companies law more 'user-friendly', says survey

NEW DELHI: More than nine months since the new companies law came into force, most executives feel that the legislation is more "user-friendly" compared to the previous one, says a survey.

However, majority of respondents said it would be challenging for listed companies to comply with provisions of both the Companies Act, 2013, and that of capital market regulator Securities and Exchange Board of India ( Sebi).

The survey by consultancy Grant Thornton, released today, said found that among respondents with a definitive opinion, over 50 per cent believe that the new Act is more user- friendly than the erstwhile legislation.

Most provisions of new law came into force from April 1. It replaces the Companies Act, 1956.

"While 54 per cent believe that the 2013 Act is largely compatible with other regulations like Sebi, 63 per cent feel that it will be challenging for listed companies to comply with the provisions of both the Companies Act, 2013 and Sebi together," it said in a statement.

Around 127 respondents, including CEOs and CFOs, participated in the survey.

Nabeel Ahmed, who is Partner at Grant Thornton India LLP, said the new law has raised the bar on corporate governance framework, accountability and gender diversity, which would only further improve India's image globally.

"These are steps in the right direction, and our survey results reflect that corporate India is ready to navigate the complexities of the new law, despite initial hiccups," Ahmed noted.