The other major proposals of the bill include:

* Insider trading becomes a criminal offence

* Consolidated financial statements of subsidiaries made mandatory

* Clause that disallows claims over unclaimed dividend after seven years removed

* Role of independent directors clearly defined

* Process for formation of companies simplified

'The Companies Bill, 2009, on its enactment, would allow the country to have a modern legislation for growth and regulation of corporate sector in India,' said a government statement.

The bill, according to Khurshid, was being re-introduced as the earlier version framed last year had lapsed because of dissolution of the previous Lok Sabha.