Finance Minister Nirmala Sitharaman said on Monday that company secretaries’ advice will make a big impact because only “well-managed” enterprises that follow strong governance procedures attract investors.
She also stated that Indian companies have done very well in attracting investments in the recent year as a result of their transparency and enhanced compliance.
“In the last few years, the rate at which compliance-related issues have become the main cause for companies to fail to live up to the expectations of investors, well-managed companies, companies which are more transparent in its functioning, companies which have good governance principles, board driven principles, are attracting lot of investors, not only big ticket investors, but also small retail investors.
“And thus, for a company to develop and expand in its field of operation, the duty of the company secretary to make it easy, to make it ready for the company to follow the guiding principles that you might advise them with, will make a lot of difference,” Nirmala Sitharaman explained.
Further Key Takeaways
She was speaking at the Institute of Company Secretaries of India’s 53rd Foundation Day celebration. The scope of the job of a company secretary is expanding, she added, at a time when the government is attempting to repeal obsolete regulations and introduce reforms to the Companies Act to lessen criminal penalties.
“You see a lot of retail investors getting engaged in the stock market in India between 2020 and today… money is moving from retail and big ticket investors all towards well-managed companies… a lot of investors, individual investors entering the market, firms pulling a lot of cash from outside, all of this is feasible only because you (company secretaries) are at it and doing a good job of counselling companies to follow improved compliances,” the Minister stated.
Nirmala Sitharaman stated that it is company secretaries who have enabled businesses to showcase their strengths in front of potential investors in the last two years, and that this will be an interesting phase for all those who are entering the profession now, with newer challenges in the form of technology.
India outperforms the global average in terms of fintech adoption
Finance Minister Nirmala Sitharaman stated that India has emerged as a “prime destination” for the digital payment revolution, with a fintech adoption rate of 87 percent, far higher than the global average of 64 percent.
“It’s no surprise that UPI has become one of India’s most recognisable brand images. “We are delighted to support, strengthen, and advance it,” declared the minister at the ‘Global FinTech Fest 2021.’
Through the direct benefit transfer mechanism, the government has been able to pay money directly into the accounts of the targeted beneficiaries thanks to digitization. She went on to say that this mechanism came in handy during the pandemic-induced lockdown. “The payment systems have matured and grown well-layered, and they have incorporated various government-sponsored schemes.”
The occasion featured the release of a report titled “United Nations Principles for Responsible Digital Payments, which contains guiding principles for the government, users, industry, and enterprises. The paper emphasises the importance of women’s participation in the fintech industry.
Frequently Asked Questions (FAQs)
What does a company secretary do?
The company secretary is in charge of the company’s effective administration, notably in terms of ensuring compliance with statutory and regulatory requirements and ensuring that the board of directors’ decisions are carried out.
What are the advantages of fintech?
Fintech has made it possible to combine physical and digital payment methods into a single interface that consolidates different bank accounts or cards. Businesses benefit from this capacity by having more convenient transaction methods and lower overall costs.