India's MCA expresses support for corporate governance index

India's ministry of corporate affairs (MCA) has voiced its support for the introduction of a corporate governance index for the nation.

Corporate affairs minister Veerappa Moily has stated that the government would be in favour of implementing rankings that would grade companies in terms of their governance standards.

"I would like to introduce a corporate governance index and am working on an award scheme for corporates," he said.

Moreover, the minister said the MCA would also be keen to introduce a new corporate governance policy for India, while pledging to make progress on the introduction of a new competition policy.

He expects the incoming Companies Bill, which will receive cabinet approval soon, to be discussed in the parliamentary winter session.

Should the new bill be made law, it would replace India's existing Companies Act which has been in place since 1956 and amended numerous times in the last few decades.