Securities issued in initial public offering of Rs 10 crore or more will have to be in dematerialised form, he said while attending a lecture on corporate governance by Infosys Technologies' chairman NR Narayana Murthy.Jethmalani said the bill seeks to redefine public offer and will treat offer to more than 50 persons as public issue.

The bill proposes to increase penal provisions for fine for offences relating to capital market. Obtaining Secretarial Compliance Certificate will be made mandatory for companies whose paid-up equity capital is not less than Rs 10 lakh and which are not required to appoint full-time company secretary.

A minimum paid-up capital of Rs 1 lakh has been proposed for a private company and Rs 5 lakh for a public company. The concept of deemed public company would also be done away with.

The bill proposes to do away with the concept of public trustee and with declaration of shares and debentures held in trust.

Other amendments include entrustment of administration of matters relating to issue and transfer of Securities in case of listed companies by Securities and Exchange Board of India.

The bill proposes additional responsibility for directors and furnish statement about taking sufficient care for proper maintenance of accounts, safeguarding the assets and presenting and detecting the fraud.

If the bill gets Parliament's nod, public-listed companies with paid-up capital of Rs 5 crore have to set up audit committees. On managerial remuneration, depreciation will be charged as per books for determining eligibility for managerial remuneration.

It is also proposed that postal ballot will be made compulsory for certain important decisions as notified by the Central Government.