The panel was constituted to suggest amendments in the Companies Act, 2013, to make it easier for companies to do business.
- Doing away with any kind of government intervention in managerial remuneration and allowing startups to issue more sweat equity and employee stock options (ESOPs).
- Removal of provision under Section 2(87), which prohibited the companies to not have more than two levels of subsidiaries.
- Only those frauds which involve Rs 10 lakh or above, or 1% of the company’s turnover, whichever is lower, may be punishable under Section 447.
- Section 447 lays down the punishment for any person found guilty of fraud to minimum 6 months imprisonment.
- A firm to be called associate company only when the parent firm owns 20 per cent of voting power in it.
- Insider trading and forward dealing provisions to be removed from the Act as Sebi regulations already exist.
- Institute of Chartered Accountants of India’s regulatory powers to be taken away; National Financial Reporting Authority would be formed.
- Private placement process to be simplified, doing away with separate offer letter, making valuation details public.