Govt repromulgates ordinance to amend companies law
New Delhi: The government has repromulgated an ordinance to amend the companies law to further improve the ease of doing business and ensure better compliance levels. The Lok Sabha passed the bill on 4 January. The amendments would help reduce the burden on special courts and bring down applicable penalties for small firms, among others.
The ordinance has amended 16 sections of the Act so as to modify the punishments from fine to monetary penalties to ease the burden on the special courts. The amendments were effected based on suggestions by a panel that reviewed the offences under the Act. PTI
The problem of plenty, in terms of flows, is exacerbated by a problem of scarcity as far as quality stocks go. It’s the classic “too much money chasing too few goods” problem. Venkatesh Panchapagesan, associate professor of finance at IIM Bangalore, says: “The limited universe of investible stocks for institutions is a problem, and the fact that the markets regulator isn’t doing anything to broaden the universe just makes things worse. So we end up with a situation where mutual funds are forced to buy stocks that they already own.”
He and his students found that more than twothirds of new money for top equity funds of two large fund houses went into their existing stocks. The study was over a two-year period from 2016-17. Panchapagesan is on the same page as Bakshi when he says, “It is a vicious cycle of flows driving prices, which, in turn, brings in more flows.”