Regulations
Regulators should intervene only in case of grave violation says Chidambaram

Noting that compliance need to be enforced, the finance minister said in cases of deviations, faith must be put on the company's board of directors and shareholders to take action against those violating laws

 

Finance minister P Chidambaram on Wednesday said that regulators should intervene only in cases of gross violations by companies or when there are clear cases of criminality so that they do not get over burdened.

 

Speaking at the Golden Jubilee celebrations of the Central Vigilance Commission (CVC), the minister said the new companies’ law aims to ensure transparency, better disclosures and better accountability.

 

"Regulator or an armed regulator must intervene and I urge that they do so only on the basis of gross violation or gross excesses or if there is clear case of criminality, Chidambaram said, adding "We must keep faith in self-regulation".

 

He further said that if any non-criminal deviation shall be investigated or regulated by regulator, that way regulator will simply be over burdened by work and regulation will fail.

 

Noting that compliance need to be enforced, the finance minister said in cases of deviations, faith must be put on the company's board of directors and on shareholders to take action against those violating laws.

 

Referring to the new companies act, the minister stressed on caution while exercising the powers. "While I strongly support the structure of the new Companies Act, I would urge caution in the manner in which powers are exercised," he said.

 

"I reiterate, we must bring self-regulation, we must enforce compliance, need to heed to board of directors and shareholders and only in exceptional cases should regulator intervene to punish gross grave cases of proven criminality," Chidambaram added.

 

The new Companies Act, which was approved by Parliament last year, has various provisions to protect investor interests and to prevent corporate misdoings.

 

Later replying to questions, Chidambaram also said, "We have a problem of corruption and we have to deal with it. The belief that India is most corrupt nation is completely wrong.

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COMMENTS

MG Warrier

3 years ago

The position taken by FM in his observation "I reiterate, we must bring self-regulation, we must enforce compliance, need to heed to board of directors and shareholders and only in exceptional cases should regulator intervene to punish gross grave cases of proven criminality," is quite intriguing. It tantamounts to asking regulators to 'go slow' or ignore violations. As I said in my earlier comment, self-regulation is conspicuous by its absence in India.
M G Warrier

sonia

3 years ago

I strongly disagree with the Minister for Finance who himself was accused of shielding his son and his company in a major financial scandal (ref. the showdown in Parliament) while making it obligatory on every resident of India to account for every paisa earned and spent. It is because the public has had to rely for so long on non-existent regulators, non-existent self-regulation by companies and non-existent mechanisms for redressal of complaints (both within companies and outside of them) that today investors/flat-buyers stand robbed of all their lifesavings by thoroughly unscrupulous companies like UNITECH. Such companies rise to the pinnacle of extortion, exploitation and deceit yet call themselves ‘most ethical’ as does TATA. When someone like the Prime Minister of India himself assists companies like UNITECH cheat their way to the top through fraud and covers up their scandals by claiming ‘zero loss’ to the public (as was the case in the 2G scam), what chance does ANY complainant stand in getting redressal if it is left to regulators to decide what constitutes ‘gross violation’ and ‘criminality’ of a case? People like me have got no redressal against cunning Unitech from ANY complaint mechanism for the past 15 years (all forums for redressal are contaminated). Are we expected to waste the rest of our lives fighting for justice against powerful companies like Unitech because Minister for Finance believes self-regulation of companies is best for the public, yet self-regulation is not something he or his son themselves abide by? Does anybody see any logic in the directive he has given to regulators on the Companies Bill?

MG Warrier

3 years ago

I AM AFRAID, INDIA IS NOT RIPE YET, FOR THE KIND OF REGULATORY APPROACH, FM IS TALKING ABOUT. SUCH AN APPROACH WILL SUIT SITUATIONS WHERE SELF-REGULATION' HAS MATURED. HERE, EVEN LAW MAKERS ENSURE BUILT-IN LOOP-HOLES TO CIRCUMVENT PROVISIONS!

Infinite Computer Solutions Q3 net profit falls 46% to Rs15.39 crore

During the December quarter, Infinite Computer Solutions reported 46% fall in its net profit due to lower sales and higher forex loss

 

Infinite Computer Solutions (India) Ltd, an information technology (IT) service provider, reported a 46% fall in its third quarter net profit due mainly on subdued domestic sales and forex loss.

 

For the quarter to end-December, the IT service provider said, its net profit fell 46% to Rs15.39 crore from Rs28.74 crore, while its total revenues, including sales, decreased 18% to Rs89.11 crore from Rs108.19 crore, a year ago period.

 

During the third quarter, Infinite Computer Solutions said its forex losses increased 44% to Rs9.98 crore from Rs6.93 crore, a same period a year ago.

 

As on 31 December 2013, Infinite Computer Solutions reserves and surplus stood at Rs417.20 crore, an 8% increase from Rs385.09 crore than a year ago period.

The company has declared an interim dividend of 20% per share.

 

At 3.03pm Wednesday, Infinite Computer Solutions was trading 3.7% down at Rs119.9 on the BSE, while the 30-share benchmark was marginally up at 20,456.

 

For more stock results, check out this page

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Rail Budget: No increase in passenger fares, freight rates

While there is no increase in passenger fares and freight rates, the railway minister has announced 73 new trains. Mumbai would also get its first AC local train in July 2014

 

Railway minister Mallikarjun Kharge, presenting the interim budget for the railways on Wednesday refrained from hiking passenger fares and freight rates. He also announced 73 new trains, extension of three trains and increase in frequency of three trains in his pre-election budget.

 

Talking about safety measures, the minister said the railways are planning to introduce indigenously developed Train Collision Avoidance System (TCAS) across its network after successfully completing field trials. A number of measures for safety and security of passengers like portable fire-extinguishers in coaches and induction based cooking in pantry car have been proposed in the Budget.

 

"A comprehensive fire and smoke detection system is on trial on two rakes of Rajdhani Express trains. This will be extended to all major passenger trains. Provision of portable fire extinguishers in AC coaches, Guard-cum-luggage break vans, pantry cars and locomotives. Introduction of electrical induction based cooking appliances in replacement of LPG in pantries is being taken up," the minister said.

 

Highlighting the passenger friendly initiatives of Indian Railways, Kharge said the success of e-booking of tickets has surpassed all expectations, and now train movements can also be tracked online to find the exact location and running. 

 

Besides, 51 Jan-Ahaar outlets for sale of Janta Meals have been set up; 48 passenger escalators have been commissioned at railway stations and 61 more are being installed and air-conditioned EMU services will commence in Mumbai area by July 2014. 

 

The minister said Itanagar, capital of Arunanchal Pradesh will soon be on rail map in this financial year, as Harmuti-Naharlagun line is expected to be commissioned shortly. The state of Meghalaya is also all set to come on the Railway map in this financial year, as Dudhnoi – Mehendipathar line is getting completed by March 2014, he added.

 

The Budget presented today envisages investment of Rs64,305 crore as against revised estimates for 2013-14 of Rs59,359 crore. Anticipating a healthier growth of economy, the freight traffic target is proposed at 1,101 million tonnes, an increment of 49.7 million tonnes over the current years’ revised target of about 1,052 million tonnes. The gross traffic receipts have been projected at Rs1.61 lakh crore. Working expenses have been proposed at Rs1.11 lakh crore, which is Rs13,589 crore higher than the revised estimates for the current year.

 

Here are the highlights of this year's interim rail budget:
 

  • •  No increase in passenger fares and freight
  • Outlay of Rs64,305 crore proposed for rail budget with a budgetary support of Rs30,223 crore
  • 17 New premium trains, 38 express trains and 10 passenger trains proposed
  • Surveys for 19 new lines and doubling of five tracks to be taken up
  • Meghalaya and Arunachal Pradesh to be on railway map
  • No unmanned level crossing left with the elimination of 5,400 unmanned crossings
  • To prevent fire incidents portable fire-extinguishers in coaches and induction based cooking introduced in pantry cars
  • Feasibility study for high speed trains in Mumbai-Ahmedabad corridor and semi high speed projects to taken up on select routes
  • More bio-toilets in trains and green curtains along the track close to major stations
  • Independent Rail Tariff Authority set-up to advice on fares and freight
  • Loading target raised to 1,052 million tonne and freight earnings target revised to Rs94,000 crore

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