GN Bajpai Calls for Flexible Capital Structure for Companies

Mumbai, Jan 10 (PTI) Former Sebi and LIC chairman GN Bajpai Thursday called upon India Inc to adopt a flexible capital structure to enable themselves to tap the gold mine of opportunities that the country offers.

He also urged captains of industry to adopt a new ownership structure, which should have a longer term perspective wherein the focus should be customers.

He said when a company has a flexible capital structure, it will not be interested in investing in companies but interested only in a project of a company.

India Inc need to adopt a new ownership model with longer-term perspective. They also need to have a lot of flexible capital structure," Bajpai who served the markets watchdog Sebi during 2002-05 said.

He was appointed Sebi chief when he was heading the national insurer LIC as chairman in 2002.

He further said the country is sitting on a gold mine of opportunities and to exploit it there is a need to have a different set of tools and mindset.

India Inc is sitting on a gold mine of opportunities. But for being able to dig the value of it, you have to have a different set of tools, techniques and mindset. If you have that, you will have a good future, Bajpai said at an event organised by the Institute of Company Secretaries.

Noting that there is a war between asset and ecosystem, Bajapi, who recently resigned from the IL&FS board within a month of appointment in October last said, companies which used to be number one in valuation, are not there today. It is those organizations that are able to create an ecosystem with scale that are progressing.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)