New Delhi, Jul 27 (PTI) The Lok Sabha today passed a bill to amend the companies law seeking to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve the ease of doing business in the country.

Piloting the Companies (Amendment) Bill, 2016, Minister of State for Corporate Affairs Arjun Ram Meghwal also said that NSEL and PACL scams were a legacy of the previous regime which the current government is trying to address.

The bill, which was passed by a voice vote, provides for more than 40 amendments to the Companies Act, 2013, which was passed during the previous UPA regime.

"The passage of this bill will help in increasing the size of the country's economy," Meghwal said, adding that investor protection and corporate governance were the two main objectives of the measure.

It would also help in simplifying procesures, make compliance easy and take strigent action against defaulting companies, he said.

Replying to the discussion on the bill, Meghwal sought to allay concerns raised by some opposition members that the latest amendments would dilute the objectives of the Companies Act, 2013.

"We have not done that (diluting the law)," the minister said in response to concerns expressed by some members and stressed that the bill would provide relief for small investors.

The amendments would strengthen corporate governance standards and improve transparency. It would also help in improving the country's position in the 'ease of doing business', Meghwal told PTI after the Lok Sabha passed the bill.

Corporate governance reforms strengthen investor protection and compliance, tightening penalties and easing procedural burdens in corporate law Amendments to the companies statute strengthen corporate governance standards, enhance investor protection, impose stricter consequences for defaulting companies, and simplify compliance procedures to improve transparency and ease of doing business while providing relief for small investors.