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Panel under Niti Aayog Makes Suggestion to Amend Companies Act and Labour Laws to Advance New Ideas

The expert committee working under Niti Ayog recommended for certain important amendments to the Companies Act issuing more bank licenses. It also suggested to make changes to labour laws to advance new ideas and entrepreneurship. The report submitted by the panel stated that some changes are to be effected to the Companies Act. This is to make sure that the listed companies are under the control of the stock exchanges and SEBI which is the market regulator. The panel recommended for issuing license to more banks for the purpose of developing access to entrepreneurial capital.

The panel aims to sharpen the corporate bond market and also to provide a specific level for private equity as well as venture capital. Yet another goal is to stabilize and make a clear regulatory and taxation group.  The expert committee further said that when making changes to the Companies Act, it should be clarified that ESOPs are not restricted for the advantage of unlisted company directors. The amendment of Labour Laws were also suggested like the unification of all the labour laws to four labour codes. This reform was taken up by the labour ministry previously. The Trade Unions Act was also recommended to be amended to restrict outsiders from interfering in unions. This is because interference of politicians will negatively affect the campaign for ‘Make In India‘.

The panel also suggested the state governments to make alterations to the labour laws if necessary. The committee made another recommendation to set up an online portal that enables all the entities and beneficiaries to register land purchase within a period of 48 hours imposing penal provisions. To develop Intellectual Property, the committee said that it is essential for the nation to make a regulatory framework which encourages new invention.  The committee was in favour of providing incentives for new inventions that provide additional low-cost solutions to the problems that are difficult to deal with in India. The annual assessment in schools was also recommended by the committee to advance the education standard in India.

Adv. Jewel Panicker