Corporate governance guidelines by March: Corporate Affairs M Veerappa Moily

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HYDERABAD: With intent to allow farmers, producers of goods and consumers, the government of India will bring out a national competition policy by March-end. It will also announce national corporate governance guidelines to strengthen the corporate governance system and administrative standards in the private sector.

“The final draft of the proposed competition policy is expected to come before the cabinet in February,” said union minister for corporate affairs M Veerappa Moily. It would supercede many central and state laws to integrate India into a single national market. Autonomous advisory experts would overlook its implementation, he said, adding that nations that have implemented such competition policies have benefitted immensely.

“The US reduced prices of petroleum products by about 50 per cent due to the implementation of competition policies,” he said. “The competition policy will reduce inflation and also improve GDP. Inflation is a demand-supply position. We do not have a proper cold chain. We do not have one national market. Competition will ensure these are in place. The GDP can grow 4 to 5 per cent more by implementing these measures,” he said.

“There are ‘mandi’ merchants who try to control prices of onions across the country. The competition policy will take care of these,” he said, adding that the huge margins for intermediaries, sometimes ranging from 100 to 300 per cent, will disappear.

The ministry is in the process of having a series of consultations with all the stakeholders including representatives from the RBI, Sebi and company secretaries to draft a policy framework.

(Financial Chronicle)

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