New Indian business laws 'will improve accountability'

New business sector regulations that are being introduced in India will help to improve accountability standards among corporate leaders.

This is according to corporate affairs minister Veerappa Moily, who stated that the currently debated companies bill will include provisions to increase punishment for business fraud, while ensuring more responsibility is taken for bad practice.

He said: "The role of key managerial personnel, board committees, independent directors and auditors is being made more accountable in the management of the company."

More stringent enforcement measures are a key element of the new bill, which was cleared by the nation's cabinet in November and is set to be debated in earnest over the coming months.

If passed, it would replace the existing companies act, which has been in place since 1956 and has come under criticism for being antiquated and not fit for purpose.

However, the minister ruled out the idea of implementing a new corporate governance index, arguing that existing provisions are working fine in this area.