PHD CHAMBER SEEKS FAIRER & TRANSPARENT CORPORATE GOVERNANCE PRACTICES TO ENABLE INDIA ATTRACT FDIs IN MSME ALSO

PHD CHAMBER SEEKS FAIRER & TRANSPARENT CORPORATE GOVERNANCE PRACTICES TO ENABLE INDIA ATTRACT FDIs IN MSME ALSO

PHD CHAMBER SEEKS FAIRER & TRANSPARENT CORPORATE GOVERNANCE PRACTICES TO ENABLE INDIA ATTRACT FDIs IN MSME ALSO

No.PR-133

January 11, 2018

New Delhi

PHD CHAMBER SEEKS FAIRER & TRANSPARENT CORPORATE GOVERNANCE PRACTICES TO ENABLE INDIA ATTRACT FDIs IN MSME ALSO

DEPARTMENT OF REVENUE INDICATES POLICY TIGHTENING MEASURES FOR SHELL & OTHER SUCH COMPANIES AT PHD CHAMBER

President, PHD Chamber of Commerce and Industry, Mr. Anil Khaitan on Thursday appealed to the government to put in a fairer and completely transparent corporate governance regulation in place to enable India attract a larger and diversified basket of foreign investments especially in MSME segment from countries such as France, Germany, Sweden and the like.

According to him, time has matured for India and India Inc. to come out clean on its corporate governance practices as these have been tainted in recent past, resulting into restricted FDIs in to the country especially in its MSME sector, particularly from countries such as France, Germany, Sweden and the like in which these nations follow stringent corporate governance norms.

Mr. Khaitan who was speaking at a Seminar on “Corporate Frauds-Detection, Prevention and Remedies” under aegis of PHD Chamber of Commerce and Industry here today, however, pointed out that in the last two years, India witnessed an increase of over 45% in corporate frauds which spoiled its reputation in terms of attracting global investments from host of economies of scale.

The Seminar was presided over jointly by Mr. Amit Mohan Govil of Tax Planning Research Unit, Department of Revenue and Mr. Anup Dubey, OSD, Enforcement Directorate along with Vice President, PHD Chamber, Mr. D K Aggarwal among others.

Mr. Govil in his address informed that an intensive research work is going on in the Department of Revenue on shell, bogus and dormant companies and the initial findings of this research has concluded that India needed to indulge into policy tightening front so that possibilities of corporate frauds in future are plugged for good and such companies are not allowed to function whose objectives and intention are mala-fide.

Mr. Dubey in his observations warned the India Inc. that all electronic and any other such kinds of transactions of all companies are being strictly monitored by the relevant departments and urged the companies to better stay on to the right side of the law as corporate functioning with mala fide intend would invite severe penalties and punishment in case corporate frauds are detected under the new laws and dispensation.

Among others who were also spoke on the occasion comprised Chairman and Co-Chairman, Company Law and Corporate Governance Committee, PHD Chamber, Mr. Pavan Kumar Vijay and Mr. Vikram Singh Mehta.

Ends.

Koteshwar Prasad Dobhal

Consultant (PR)