From: Subject: PIB Press Release Date: Thu, 5 May 2011 17:49:40 +0530 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_003D_01CC0B4C.CF019830" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.2180 This is a multi-part message in MIME format. ------=_NextPart_000_003D_01CC0B4C.CF019830 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.pib.nic.in/release/rel_print_page.asp?relid=53666 PIB Press Release
Thursday,5 May=20 2011  
KOLKATA=20
CHENNAI=20
BANGALORE=20
 
Wednesday, October = 28,=20 2009
  Ministry of = Corporate=20 Affairs  
 
SHRI = SALMAN KHURSHID=20 EMPHASISES NEED TO EDUCATE INVESTORS IN GENRERAL TO ENSURE = GOOD=20 CORPORATE GOVERNANCE
 
  19:46 IST  
 
  Shri = Salman=20 Khurshid, Minister for Corporate Affairs, has emphasized the = need to=20 make a comprehensive study of the investor mentality: that = why a=20 certain investor never returns to the market after making = losses;=20 why some others are totally wedded to the Stock Market; why = many=20 people choose to stay away from the and why only a very = small=20 percentage of household savings is deployed in the Share = Market by=20 the Indian investor. Addressing a half day workshop on = =93Companies=20 Bill 2009: Class Action Suit and Compensation=94, organized = by Midas=20 Touch Investors Association, here today, Shri Khurshid = pointed out=20 that the timely Government intervention in the Satyam affair = has set=20 a totally new precedent where the Government was able to = fully=20 protect the interests of the investors by completing the = entire=20 process of handing over the reins of the company to an able = buyer in=20 a very short span, thereby restoring the prestige of the = company at=20 the earliest. Minister for Corporate Affairs said that he = sees a=20 well informed investor as furtherance of democracy itself, = as it=20 ensures a good Corporate Governance. He said that the = Companies Bill=20 2009 contains a number of provisions for safeguarding the = interests=20 of investors and this will be further strengthened while = making=20 rules under the new proposed law.

Initiating the = discussion,=20 Mr. Virendra Jain, President, Midas Touch Investors = Association in=20 his presentation said that compensation laws in a globalized = and=20 liberalized economy are very important to preserve the = integrity of=20 the market and should be formulated. He said that Class = Action Suits=20 are very effective in various European Countries, United = States and=20 other countries. There, the investors have received over $60 = billion=20 as compensation in last few years. Shri Jain said that = unfortunately=20 in India we have no such provision in our laws. He said that = there=20 is a need to make a distinction between fraud and normal = movement of=20 the market. In the latter case, it is the investor who has = to take=20 the risk but in the former, there is need for strong laws to = ensure=20 that duped investors are compensated.

A Cross = section of=20 experts in Company Management and Finance, company = secretaries and=20 lawyers participated in the discussion.

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KKP/ska=20 		 
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