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Govt advised to adopt fair regulatory process

Stating that the Enron issue has 'scared away' potential foreign investors, US Congressman Joseph Crowley said, India needs to adopt a transparent regulatory process.

Greater transparency would have avoided the 'Enron-India,' conflicts and would have made the country more hospitable for foreign capital, he said while addressing a session on Global finance: Overcoming the slump, at the CII Partnership Summit in Bangalore on Thursday.

Crowley said the Securities and Exchange Commission of the US had indulged in introspection following Enron's collapse in the US.

He stressed the importance of transparency and the need for adopting fair regulatory systems in attracting foreign investment.

"It has been proven time and again throughout the world that when governments mandate greater transparency, often through regulatory agencies, markets grow, capital flows and jobs get created," he added.

Referring to the closer ties between the US and Iindia, particularly after the September 11 terrorist attacks, Crowley said US President George Bush was likely to visit India later this year.

Out of 435 members of the House of Representatives, around 140 members were part of the India caucus, he pointed out.

Prof Marti Subrahmanyam from the Stern School of Business, said the globalisation initiative of Indian companies would have to be financed by global capital.

Indian companies would have to become more attractive for international investors and the financial structure should be redesigned to facilitate NRI equity investment.

UNI

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