Govt nod to 'decriminalize' Companies Act; 65 sections to be changed

The Cabinet approves 72 changes to Companies Act and will modify 65 sections.

New Delhi:The government on Wednesday cleared more amendments to the companies law, including decriminalising various offences.

As many as 72 changes to the Companies Act 2013 have been approved by the Cabinet.

Briefing reporters, Corporate Affairs Minister Nirmala Sitharaman said the priority is to "decriminalise" provisions in the Act.

Sitharaman, who is also the Finance Minister, said the Cabinet has approved 72 changes to the Act.

As many as 23 offences would be recategorised out of 66 compoundable offences under the Act. Besides, seven compoundable offences would be omitted, she said.

Sitharaman said the government would remove provisions of imprisonment in various sections and also reduce penalties in case of various compoundable offences.

She also said that companies having CSR obligation of less than Rs 50 lakh would not have to constitute a CSR committee.

These initiatives, Sitharaman said, are aimed at ease of doing business.

In November, a government-appointed high level panel proposed decriminalising more than half of the existing compoundable offences under the companies law as well as lower monetary penalties for violations by startups, amid efforts to further improve the ease of doing business in the country.

Generally, compoundable offences are those which can be settled by paying certain amount of money.

Govt permits NRIs to own up to 100% stake in Air India

The government has permitted NRIs to own up to 100 per cent stake in disinvestment-bound Air India.

The decision comes at a time when the government is looking to sell 100 per cent stake sale in the national carrier.

Union minister Prakash Javadekar said the Cabinet has approved allowing Non-Residents Indians (NRIs) to hold up to 100 per cent stake in Air India.

Allowing 100 per cent investment by Non-Resident Indians (NRIs) in the carrier would also not be in violation of SOEC norms. NRI investments would be treated as domestic investments.

Banks' merger to come into effect from April 1

Finance Minister Nirmala Sitharaman said the exercise of consolidation of 10 public sector banks (PSBs) into four is on course and the merger will come into effect from April 1, 2020.

The Union Cabinet, she said, has given a go-ahead for the merger proposal and the government has been in regular touch with these banks.

There will be no regulatory issues, she said.

"The banks' merger is on course and decisions have already been taken by the respective bank boards," she told reporters here.

The mergers are aimed at creating global sized banks in India.

(PTI Report)