The Companies Act, 2013 came into effect from April 1 this year but faced stiff criticism for many provisions. Amendments to it were proposed to ensure severe punishment for those raising illegal deposits from the public.
The Lok Sabha on Wednesday passed the Companies Act (Amendment) Bill paving the way to tackle ponzi menace like the Saradha scam.
The Companies Act, 2013 came into effect from April 1 this year but faced stiff criticism for many provisions. Amendments to it were proposed to ensure severe punishment for those raising illegal deposits from the public.
The bill is among the first major initiatives by the government to make changes in the country's regulatory framework to improve its global ranking for ease of doing business, where India has been ranked very low at 142nd position in the latest World Bank report.
Corporate Affairs Minister Arun Jaitley, who also holds the finance portfolio, had pushed for the changes in Companies Act for ease of doing business.
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