Finance Minister highlights that loss-making or shell companies should not participate in such donations
Finance Minister Nirmala Sitharaman on Friday stressed the importance of learning from the electoral bonds scheme to enhance transparency in the system. Speaking at the India Today Conclave 2024, Sitharaman remarked that the electoral bonds introduced a system that, although not perfect, improved upon a completely flawed system.
“Our effort should be to learn from this. I am not suggesting whether a new law will be introduced, but we must incorporate lessons from this experience to progressively enhance transparency,” Sitharaman stated.
She also highlighted that loss-making or shell companies should not participate in such donations, noting this as an issue that requires attention. “Corporates can contribute, but the terms and applicable laws need to be clearly defined,” the Finance Minister added.
The Supreme Court, in its ruling on electoral bonds, declared that the 2017 amendment to Section 182 of the Companies Act was unconstitutional.
Sitharaman also called for enhanced coordination between the central government, state governments, urban, and panchayat bodies to advance the reform agenda. “Reforms need to be implemented at every level,” she further commented.
Regarding India’s stance on cryptocurrency, the Finance Minister stated that cryptocurrencies cannot be treated as currencies in India and remain unregulated. “Regulating cryptocurrencies in one country while others do not could lead to issues like money laundering or funding illicit activities. Therefore, we are working towards establishing a framework at the G20 level. The proposal has been well-received, and I anticipate a framework will emerge,” she explained.
On the trend of declining household savings, Sitharaman observed that more people are investing directly in the stock market. She also noted the stability of the Indian stock market, advocating for it to operate independently.
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