FM announces measures for further ease of doing business

17 May '20

1 min read

Finance Minister Nirmala Sitharaman addressing a press conference on May 17, 2020. Pic: PIB/youtube

Announcing the fifth and last of the initiatives under the ₹20 lakh crore package announced by Prime Minister Narendra Modi, finance minister Nirmala Sitharaman today listed some measures for further ease of doing business. Most of the Companies Act violations involving minor technical and procedural defaults will be decriminalised, the minister said.

Further, majority of the compoundable offences sections will be shifted to internal adjudication mechanism (IAM).

Also, no fresh insolvency proceedings will be initiated up to one year. For MSMEs, a special insolvency resolution framework would be notified under section 240A of the IBC.

In addition, the minimum threshold to raise insolvency proceedings will be raised to ₹1 crore from ₹1 lakh, which mainly insulates MSMEs.

"These amendments will declog criminal courts and NCLT," Sitharaman said.

Private companies which list non-convertible debentures (NCDs) on stock exchanges will not to be regarded as listed companies. However, Indian companies can now list their securities directly in permissible foreign jurisdictions, she announced.

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