The cabinet has approved 72 changes in the Companies Act 2013, including decriminalising various offences.

Finance minister Nirmala Sitharaman said 23 of the 66 compoundable offences under the act will be recategorised so that they can be dealt with through an in-house adjudication framework.

Seven offences have been omitted altogether, while 11 will have limited punishment in the form of fines alone with the removal of the imprisonment provision.

Five offences will be dealt with under different alternative frameworks; six offences which had earlier been decriminalised will now have reduced penalties.

The proposed amendments will ensure that companies which have an obligation to spend Rs 50 lakh per annum or less on corporate social responsibility (CSR) are no longer required to have a CSR committee.

Companies which spend over the obligated 2 per cent on CSR in a particular year can carry it forward as credit for the fulfilment of CSR obligations for the next few years as well.