Impact of decriminalisation of offences

The number of compliances imposed on Indian corporates are far more as compared to corporates elsewhere. There are quarterly, monthly, half-yearly and yearly compliances under the check this  myriad statutes that rule our country today. In addition, every statute contains a penal provision for any kind of non-compliance. Consequently, a huge statutory burden is imposed on corporates irrespective of their size and scale of operations. 

Decriminalisation of offences would lead to a positive impact on business decisions of Indian as well as foreign investors and ultimately will foster the growth of corporates in our country.

Increased foreign investment
Foreign Direct Investment (FDI) is one of the major sources of funding for the Indian corporate sector. By providing civil liability for the majority of offences, the Indian Companies Act has aligned itself to corporate law provisions prevailing in several other countries. As a result, it boosts the confidence of major FDI players and enables them to opt for various investment opportunities in India. Additionally, by removing imprisonment for contravention of provisions relating to foreign companies and limiting it to fine alone, it will promote the setting up of more and more places of business in India by foreign companies. 

Improved corporate governance
The scope IAM Framework has increased as a result of decriminalisation, thereby enabling the Adjudicating Officer to take action against wilful defaulters, impose penalties and make good the offence. While adjudging the penalty, the Adjudicating Officer has to work within the parameters set out in the Act itself, thereby ensuring better compliance.