The minister said there is an urgent need to broad base the investment climate in the country, but observed that 90% of capital market transactions are confined to just 10 cities

Moneylife Digital Team

Union minister for corporate affairs Dr Veerappa Moily, citing a report from Citigroup, said that there is an urgent need to broad base the investment climate in the country, but observed that 90% of capital market transactions are confined to just 10 cities. To increase the ratio of domestic savings to capital market investments, the ministry of corporate affairs has been organizing massive investor education and awareness programmes.

Emphasising the importance of good governance in public sphere, the minister said the government is planning to bring in the National Corporate Governance Policy. “The policy, to be drafted in consultation with the industry, would set governance standards, spell out innovative steps to be taken by corporates and stress on dynamic and inclusive growth,” he said.

Dr Moily was speaking at a Corporate and Investor Meet in Mumbai. The minister also said that the new National Competition Policy will be in place by 31st March which would dismantle all the monopolies and anti-competitive forces and also help control inflation. He said, “The Competition Policy, by targeting cartelization, will go a long way in moderating prices, especially food prices.”

Dr Moily referred to the US and said due to the national competition policy, the prices of petroleum products got halved in that country.

Speaking about Corporate Social Responsibility (CSR), the minister complemented public sector units (PSUs) for participating in the process and called upon the private sector to join in, as well. He clarified that the 2% contribution for CSR has not been made mandatory, but reporting about it in the annual report is compulsory.