GN Bajpai calls for flexible capital structure for companies to be able to tap opportunities in country

Mumbai: Former Sebi and LIC chairman GN Bajpai on 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. [caption id=“attachment_5697571” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] 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 organisations that are able to create an ecosystem with scale that are progressing.     To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day. To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.