In its final report, the Commission said that in a situation where no single political party or pre-poll alliance of parties succeeds in securing a clear majority in the Lok Sabha after elections, the rules of procedure and conduct of business in Lok Sabha may be modified obviating the need for any Constitution amendment.
The rules may provide for the election of the leader of the House by the Lok Sabha along with the election of the speaker in a like manner, the report said adding that the leader then may be appointed as Prime Minister.
It said that the same procedure might be followed for the office of the Chief Minister in states which would throw up a hung House.
Besides, it recommended amendment in the rules of procedure of the legislatures for adoption of a system of constructive vote of no confidence.
"For a motion of no-confidence to be brought out against government at least 20 per cent of the total number of members of the House should give notice. Also, the motion should be accompanied by a proposal of alternative leader to be voted simultaneously," the Commission said.
The report wanted the Election Commission should progressively increase the threshold criterion for eligibility for recognition so that the proliferation of smaller political parties was discouraged.
The Commission recommended that a comprehensive law be enacted regulating the registration and functioning of political parties or alliances of parties in the country.
The proposed law, it said, should provide that a political party or alliance should, in its memoranda of association, rules and regulations provide for its doors being open to all citizens irrespective of any distinctions of caste, community or the like.
Besides, it also wanted a comprehensive legislation for regulation of contributions to the political parties and towards election expenses for bringing transparency in political funding and permit corporate donations within higher prescribed limits and keep them transparent.