The Companies Act, 2013 has already been amended once under the current government.
In order to strengthen corporate governance standards, the Lok Sabha has passed a bill to amend the companies law.
The bill will also initiate strict action against defaulting companies and help improve the ease of doing business in the country.
The bill provides for more than 40 amendments to the Companies Act, 2013, which was passed during the previous UPA regime.
Piloting the Companies (Amendment) Bill, 2016, Minister of State for Corporate Affairs Arjun Ram Meghwal said that NSEL and PACL scams were a legacy of the previous regime which the current government is trying to address.
Adding that investor protection and corporate governance were the two main objectives of the measure, Meghwal said the bill will boost the Indian economy.
In March 2016, the bill was introduced in the Lok Sabha. It was referred to the Standing Committee on Finance. After considering the recommendations of the panel, the Cabinet had cleared a revised bill in March 2017.
The Companies Act, 2013 has already been amended once under the present government.