Union Cabinet approved the Companies Bill. Top official sources said that the bill is likely to be tabled in the current session of Parliament. The Bill provides for stricter corporate governance norms. Once approved by Parliament, it will replace the Companies Act of 1956.

Among other things, the bill also proposes to tighten laws for raising money from the public. The Bill also seeks to prohibit any insider trading by company directors or key managerial personnel by treating such activities as a criminal offence.

Further, it proposes that companies should earmark 2 per cent of the average profit of the preceding three years for Companies Social Responsibility activities and make a disclosure to shareholders about the policy adopted in the process.

The Union Cabinet has also approved setting up of a full fledged permanent Centre of National Institute of Fashion Technology, NIFT at Rae Bareli in Uttar Pradesh. This decision will ease pressure on existing Delhi NIFT Centre. The centre would benefit a large number of students from Uttar Pradesh and neighbouring states who aspire to join courses conducted by NIFT.

The Cabinet has also gave its nod for the setting up of Biotechnology Industry Research Assistance Council, BIRAC with a vision to stimulate, foster and enhance the strategic research and innovation capabilities of the Indian biotech industry. It will also pave the way to make India globally competitive in biotech innovation and entrepreneurship and to create affordable products and services.

In another decision, the proposal for relaxation of the norms for sanctioning six additional Kasturba Gandhi Balika Vidyalayas was approved.

These Vidyalayas will be opened in the districts of Bishnupur, Imphal (East), Imphal (West), Senapati, Yhoubai and Ukhrul in Manipur. Kasturba Gandhi Balika Vidyalaya are residential schools at the upper primary level for girls belonging to predominantly Schedule Caste, Schedule Tribes, OBC and minority communities in educationally backward blocks with rural female literacy lower than the national average.