New Delhi: Finance Minister Nirmala Sitharaman said Monday advise given by company secretaries to businesses is going to make a lot of difference as only ‘well-managed’ companies following good governance practices are attracting investors. Nirmala Sitharaman also said Indian companies have done extraordinarily well in the last year with regard to attracting investments because of their transparency and better compliance.
“In the last few years, the rate at which compliance-related issues have become the main cause for companies to fail to live up to the expectations of investors, well-managed companies, companies which are more transparent in its functioning, companies which have good governance principles, board driven principles, are attracting lot of investors, not only big ticket investors, but also small retail investors,” Sitharaman said while addressing an event to mark the 53rd Foundation Day of the Institute of Company Secretaries of India (ICSI).
“And therefore, for a company to flourish and expand in its area of operation, the role of company secretary to make it easy, to make it ready for the company to follow the guiding principles that you might advice them with, is going to make a lot of difference,” added the finance minister.
Sitharaman also pointed out that when the government is trying to remove archaic laws and bring in amendments to reduce penal provisions in the Companies Act, the scope of work of a company secretary is widening.
“Between 2020 and today, you see a lot of retail investors getting interested in stock market in India. The money is flowing from retail and big ticket investors all towards well-managed companies,” the minister said.
“…Lot of investors, retail investors going into the market, companies drawing lot of funds from abroad, are all possible only because you (company secretaries) are at it and doing a good job of advising the companies to follow better compliances,” Sitharaman added.
Stating that it is the company secretaries who made it possible for businesses in the last two years to showcase their strengths before potential investors, Sitharaman said this would be an interesting phase for all those who are getting into the profession now with newer challenges in the form of technology.