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Finance Minister Nirmala Sitharaman said on Monday that the advice given by company secretaries to companies would make a big difference, as only “well-run” companies with good governance practices attract investors. She also said Indian companies had been extremely successful in attracting investment last year due to their transparency and better compliance.
“Over the past few years, the pace at which compliance issues have become the primary cause why businesses fall short of investor expectations, well-run businesses, more transparent businesses, companies that have the principles of good governance, the principles of the board of directors, attract many investors, not only large investors, but also small retail investors.
“And so, for a company to flourish and develop in its field of activity, the role of company secretary to facilitate things, so that it is ready for the company to follow the guiding principles that you could advise them, will make a lot of difference, ”Sitharaman said.
She was addressing an event marking the 53rd day of the founding of the Institute of Corporate Secretaries of India (ICSI).
She said that at a time when the government is trying to do away with archaic laws and make amendments to reduce the penal provisions of the companies law, the scope of a business secretary is widening.
“Between 2020 and today, you see a lot of retail investors taking an interest in the stock market in India …
“… a lot of investors, retail investors entering the market, companies pulling a lot of funds from overseas, are only possible because you (company secretaries) are there and are making a good work in advising companies to better comply, “the minister said.
Stating that it is the corporate secretaries who have made it possible for companies over the past two years to showcase their strengths to potential investors, Sitharaman said it would be an interesting phase for anyone entering the profession now with many years to come. new challenges in the form of technology.
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