New Delhi: Industry chamber Assocham has called for a legislation to make provisions for funding of elections through budgetary allocation and make corporate donations transparent and regulated by the Securities and Exchange Board of India (Sebi).
Assocham has suggested that poll funding by companies should be made “legal” and transparent and the whole process be regulated by Sebi.
In a paper titled, Funding of the Political Parties for Election Purposes, submitted to Prime Minister Manmohan Singh, the group said legislation is needed for cleaner, freer and transparent elections.
“Sebi should impose a certain ceiling on corporate’s net profits for extension of such donations to political parties of their choices to prevent them exceed the prescribed limit for any motive,” the chamber said in a statement.
Pointing out that listed corporations should inform Sebi about the donations they intend to make, Assocham has said that all such funding should be approved by their respective corporate boards. In the case of unlisted companies and partnerships, the funding moves should be approved by the income-tax department.