SC allows eminent citizens to withdraw petition against SEBI chief's appointment

The apex court, however gave the petitioners the liberty to file afresh raising constitutional issues regarding appointment of regulators and on the concept of regulatory independence

The Supreme Court on Monday allowed eminent citizens, who had filed a public interest litigation (PIL) challenging the procedure for appointment of the Securities and Exchange Board of India (SEBI) chief, UK Sinha, to withdraw their petition.

However, it gave the petitioners the liberty to file afresh raising constitutional issues regarding appointment of regulators and on the concept of regulatory independence.

"What is being argued before us (by the petitioners) is on concepts arising out of Constitutional law. However, that has not been taken up as a prayer in the writ petition. We expect proper pleading in the matter where Constitutional doctrines are sought to be invoked particularly with respect to regulatory independence... If so advised, petitioners may file afresh a fresh petition raising the points which were argued before us," the Supreme Court said.

A group of eminent citizens, including former Chief of Air Staff S Krishnaswamy, former Punjab police chief Julio Ribeiro and former joint director of CBI, BR Lall, filed the PIL alleging that the constitution of the search committee for appointing the chairman and directors was altered to give the finance minister more say on the selection.

"The constitution of the search-cum-selection committee for recommending the name of chairman and every whole-time members of SEBI for appointment has been altered, which directly impacted its balance and could compromise the role of the Sebi as a watchdog. It is the only instance of its sort where the concerned minister has placed two members of his own choosing in the search-cum-selection committee," the PIL alleged.

Replying to the PIL, the Finance Ministry (FinMin), in a hard-hitting affidavit, challenged the assumptions and motivations of the group. The affidavit filed by Amit Bansal, an undersecretary in the Finance Ministry refuted two assumptions on the basis of which the 'eminent citizens' have sought to quash the appointment of Mr Sinha as chairman and to extend the term of two whole time directors MS Sahoo and KM Abraham from three to five years (both have already quit SEBI).

The affidavit also pointed out that in 2009, the search committee had mentioned four names. First M Damodaran who was already the SEBI chairman, UK Sinha and Dr Jaimini Bhagwati (both former joint secretaries in charge of the capital markets portfolio at the Finance Ministry) and it mentioned that CB Bhave had mentioned that he was disinclined to accept the post. Yet, strangely enough, Mr Bhave was selected, when (as Moneylife has frequently reported) the Prime Minister was all set to grant an extension to Mr Damodaran.


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S H Subrahmanian

5 years ago

Nandan Nlekeni was appointed as Chairman of the illfated UIDA of India, with Cabinet rank and special powers. Was there a panel from which he was selected?

Indian firms make highest contribution to Luxembourg Exchange

At the time of the listing of the 250th depositary receipt, there were 171 Indian companies, the highest in the bourse of the central European country, reflecting its position as the leading exchange for international securities, according to data published by the stock exchange

New Delhi: Indian companies made the highest contribution to the Luxembourg Stock Exchange’s ‘milestone’ of reaching 250 issuers of Global Depositary Receipts (GDRs) in July this year.

At the time of the listing of the 250th depositary receipt, there were 171 Indian companies, the highest in the bourse of the central European country, reflecting its position as the leading exchange for international securities, said the stock exchange in its latest publication available with PTI.

Majority of the Indian companies which have listed their GDRs are in construction, software and biotechnology sectors, it said.

GDRs are instruments used mainly by companies in emerging economies to access international capital markets and the Luxembourg Stock Exchange has a long history of working with such companies.

Taiwan occupied the second position after India in approaching the Luxembourg bourse for GDRs with the figure of 48.

The Luxembourg Stock Exchange has also since 2009 run two specialist indices: “Lux GDR India” index and “Lux GDR Taiwan index,” the movements of which reflect the trends of the home markets in India and Taiwan, the bourse said.

For GDRs, the Luxembourg Stock Exchange takes the second position worldwide behind the New York Stock Exchange (306 issuers) but ahead of the London Stock Exchange (196 issuers) and Nasdaq (106 issuers), it added.

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Manufacturing sector growth may moderate in Oct-Dec: CII-ASCON survey

High input and capital costs and uncertainties in the global economy are the major factors constraining growth of the manufacturing sector, a survey conducted by CII-ASCON has revealed

New Delhi: Growth in India’s manufacturing sector is expected to further moderate during October-December over the same period last year on account of high input costs and uncertainties in the global economy, reports PTI.

The sector’s growth was moderated in the April-September period compared to the corresponding period of the previous year.

“High input and capital costs and uncertainties in the global economy are the major factors constraining growth of the manufacturing sector,” CII-ASCON survey said today.

Out of the 85 sectors covered in the survey for the October-December period, the percentage of segments reporting excellent growth of more than 20% is expected to decline to 7%, it said.

Further, slowdown is also expected in large number of sectors falling in the moderate category of growth between 0%-10%.

“Most of the sectors (55.2%) are expected to grow at a moderate rate during October-December,” it said, adding the number of sectors recording excellent and high growth was expected to decline to moderate growth category.

It also highlighted some of the issues faced by the industry, including rise in the cost of raw materials, high cost of credit, infrastructure bottlenecks and land acquisition issue.

“These issues need to be addressed at the earliest to help the industry overcome the ongoing decelerating growth phase,” it said.

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