| Topic: GS2 – Governance – Government Policies – Interventions for development in various sectors
UPSC candidates must grasp corporate governance reforms in 2023, reflecting India’s dynamic regulatory environment and economic facilitation. |
| Context: |
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- C-PACE Operationalization: The Central Processing for Accelerated Corporate Exit (C-PACE) became operational on May 1, 2023. This initiative, in line with the Union Budget announcement in 2022, aims to expedite approval processes for companies voluntarily closing operations.
- RD Empowerment: Amendments to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 empower Regional Directors (RDs) to hasten the approval of mergers.
- CCI Approval Threshold: The Competition (Amendment) Bill, 2023, passed in both Houses and receiving Presidential assent, mandates CCI approval for transactions exceeding Rs 2,000 crore. The final order timeline for combination transactions is reduced to 150 days from 210 days.
- Expanded Scope: The amendment broadens the scope of entities in anti-competitive agreements, now including those not engaged in similar businesses. It introduces a framework for settlement and commitment, expediting the resolution of investigations.
- IndAS Amendments: The Companies (Indian Accounting Standards) Amendment Rules, 2023, effective from April 1, 2023, bring crucial changes to IndAS 1, IndAS 8, and IndAS 12, addressing material accounting policies, definition of accounting estimates, and deferred tax related to assets and liabilities arising from a single transaction.
- Cost Removal in Office Shifting: Amendments in the Companies (Incorporation) Rules, 2014, remove processing costs for shifting registered offices, streamlining the process.
- Automated Approvals: Adoption of the Straight Through Process (STP) for additional e-forms eliminates manual intervention, facilitating electronic approvals and enhancing operational efficiency.
- Collectively, these achievements underscore the Ministry of Corporate Affairs’ commitment to fostering a dynamic, efficient, and responsive corporate ecosystem in India.
