TPA.6 — Trade & Industry

Produce value, create wealth.

TPA.6.1 — INDUSTRY BODIES AND PROFESSIONAL GOVERNANCE

No new publicly funded company or industrial enterprise shall be established without the prior approval of the concerned Industry Body.

Industry Bodies shall be constituted as professional bodies, with members selected on the basis of professional competence, experience and knowledge of the respective industry.

There shall be no honorary positions carrying authority over the affairs or decisions of an Industry Body. All persons exercising authority shall have clearly defined professional responsibility and accountability.

Industry Bodies shall operate under strictly defined rules, standards and procedures. No individual shall be permitted to exercise discretionary authority contrary to established rules.

Any person who deliberately flouts prescribed rules or abuses discretionary authority shall be subject to strict disciplinary and legal action, irrespective of position or status.

The objective is to ensure that Trade & Industry is governed by professional competence, industry knowledge, transparency and accountability, rather than political influence, honorary appointments or individual discretion.

TPA.6.2 — PROFESSIONAL COMPETENCE IN PUBLICLY FUNDED BUSINESSES

All publicly funded businesses, including businesses financed through the proposed banking and sector-financing system, shall be subject to strict controls regarding the personnel employed and appointed to management positions.

Appointments shall be based on appropriate educational qualifications, professional competence, relevant experience and demonstrated capability.

Promoters shall not be permitted to appoint incompetent family members or relatives to management positions merely because of their family relationship. Family members may be employed or appointed only when they satisfy the same professional competence requirements applicable to any other candidate.

The objective is to ensure that publicly funded capital is managed by competent professionals and that productive finance is directed towards genuine capability rather than personal relationships or influence.

TPA.6.3 — PROMOTER RESPONSIBILITY AND CONTROLLING OWNERSHIP

In publicly listed companies, the promoters shall retain a minimum 51% holding so that responsibility for the enterprise remains with those who establish and control it.

Promoter control shall carry corresponding professional, financial and managerial responsibility for the performance and integrity of the enterprise.

The objective is to ensure that ownership, control and responsibility remain aligned, while protecting the company from management becoming detached from those responsible for its creation and direction.

TPA.6.4 — START-UP FINANCING AND VENTURE CAPITAL

Venture capital financing shall not be permitted for new start-ups.

New start-ups should initially be supported through Government seed funding and the prescribed public financing framework rather than speculative venture-capital structures.

Government seed funding shall be provided only to deserving cases, following professional evaluation of the concept, technical feasibility, promoter capability and potential national value.

The purpose is to encourage innovative entrepreneurship without allowing early-stage businesses to become dependent on venture-capital structures or speculative external ownership.

TPA.6.5 — GOVERNMENT EQUITY IN NEW PUBLICLY FUNDED COMPANIES

For a new company established with Government/public funding, the Government shall initially hold 49% of the equity.

The company shall first establish itself as a professionally managed and operationally viable enterprise. Only after it has been established shall it be permitted to go public.

Following public listing, the Government's 49% holding may be progressively diluted through the market under the prescribed framework.

The promoters shall retain their required minimum 51% controlling holding, ensuring that responsibility for the enterprise remains with the promoters while Government participation provides the initial public support.

TPA.6.6 — WHISTLEBLOWER PROTECTION AND CORPORATE INTEGRITY

Strict whistleblower norms shall apply to the functioning of all businesses, whether publicly or privately owned.

Every business shall provide a secure and independent mechanism through which employees and authorised stakeholders can report fraud, corruption, financial irregularities, abuse of authority, violation of prescribed rules, unsafe practices or other serious misconduct.

Whistleblowers acting in good faith shall be protected against retaliation, victimisation, dismissal, demotion or other adverse action.

Reports shall be independently examined through a defined process, and proven violations shall attract strict disciplinary and legal action, irrespective of the position or status of the person involved.

The objective is to make integrity and accountability an integral part of every business organisation.

TPA.6.7 — DISCOUNT SELLING AND DISTRESS SALES

Discount selling shall not be permitted as a normal commercial practice.

Prices shall be established within the transparent costing and pricing framework prescribed by the concerned professional Industry Body.

A genuine distress sale may be permitted only in exceptional circumstances and shall be vetted by the Government under prescribed rules.

The circumstances, valuation and terms of every approved distress sale shall be properly recorded in the national information system.

The objective is to prevent artificial discounting, manipulation of prices, predatory pricing and misleading commercial practices, while allowing genuine businesses facing exceptional circumstances to dispose of assets or inventory through a controlled and transparent process.

TPA.6.8 — INDUSTRY-SPECIFIC MARKETING CHANNELS AND EXPENDITURE TAX

Each industry shall operate through prescribed and transparent marketing channels designed to prevent manipulation of prices, transactions and expenditure-tax liability.

The proposed Expenditure Tax shall apply only to sales made to individual/end consumers. Transactions between businesses and other commercial operators, where goods or services are inputs to another economic activity, shall not attract expenditure tax.

Thus, the tax follows final individual consumption rather than being repeatedly imposed as the product passes through the commercial chain.

Prescribed industry marketing channels, standardised transaction records and the national information system shall make the movement of goods, services and money transparent and prevent artificial routing of transactions to avoid expenditure tax.

TAX CONSUMPTION — NOT PRODUCTION — AND DO NOT TAX THE SAME ECONOMIC VALUE REPEATEDLY.

TPA.6.9 — INSTITUTIONALISED CARPOOLING AND PROFESSIONAL TRANSPORT

Registered carpooling shall be institutionally encouraged as an important measure for fuel conservation, reduction of congestion and better utilisation of vehicle capacity.

The system shall encourage the use of professional cab drivers for shared transportation.

Easy and accessible auto loans shall be made available to eligible professional drivers so that they can establish sustainable livelihoods through passenger transport.

The objective is to use existing transport capacity more efficiently, reduce unnecessary fuel consumption and congestion, and create productive professional employment.