Regulations
SEBI may include Godrej panel suggestions in listing pacts

The Godrej committee has recommended adoption of 17 "Guiding Principles" to underpin the system of corporate governance in the country, including responsibilities of independent directors and functioning of a company's board

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) is looking at including the suggestions made by the Adi Godrej panel on corporate governance in the listing agreements for companies, reports PTI quoting Corporate Affairs Minister Veerappa Moily.
 
The panel, set up by the ministry and chaired by eminent industrialist Adi Godrej, has come out with various suggestions on improving overall corporate governance.
 
"I am happy to inform you that SEBI is actively contemplating making these principles as part of its listing agreements. We on our part are examining as to how these principles can form part of policy guidelines of corporate governance," Moily said at the Economic Editors' Conference.
 
According to the minister, the committee has recommended adoption of 17 "Guiding Principles" to underpin the system of corporate governance in the country.
 
The recommendations cover various aspects of corporate governance such as responsibilities of independent directors and functioning of a company's board.
 
In recent times, there have been rising concerns about corporate governance at companies.
 

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SEBI exempts shareholder from complying with open offer rules

Naiker had sought exemption from SEBI regarding acquisition of 5.62 lakh shares representing 45% stake from existing promoters of Hemakuta Industrial Investment, which have not been trades since 2002

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has exempted Kannan Krishnan Naiker, an individual shareholder, from complying with certain regulatory procedures while making an open offer to acquire an additional 45% stake in Hemakuta Industrial Investment, reports PTI.
 
The exemption for Naiker has been given on the basis that his proposal is 'reasonable' and would provide an exit opportunity for the company's existing shareholders.
 
According to a SEBI order dated 8th October, shares of Hemakuta Industrial Investment listed on the BSE have not been traded since 2002 and there are only 245 public shareholders in the entity.
 
"In my view, therefore, the revised proposal of the applicant is reasonable and in the facts and circumstances of the case the proposed acquisition merits relaxation from strict compliance of procedures specified under regulations 13, 14, 15, 16 and 18 of the Takeover Regulations with regard to public announcement and filing / dispatch, etc. of letter of offer," SEBI whole time member Rajeev Kumar Agarwal said.
 
As per norms, an entity acquiring 15% or more shares in a listed company has to make an open offer to shareholders so as they have an option of exiting.
 
However, the exemption would be subject to various conditions that have to be fulfilled by Naiker.
 
SEBI said that Naiker had proposed to provide exit opportunity to all the public shareholders of the company by making an individual offer and had sought exemption only from the strict compliance of regulations to save costs.
 
"The revised proposal would be in the interest of public shareholders and he (Naiker) does not intend to deprive them of any exit opportunity," SEBI said.
 
Naiker had sought exemption from the regulator regarding acquisition of 5.62 lakh shares representing 45% stake from the existing promoters of Hemakuta Industrial Investment.
 
The acquisition would increase the shareholding of Naiker from 24.4% to 69.4%.
 

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Centralised KYC registry can happen after UCIC issuance: RBI

Banks have also been advised by the government to issue unique customer identification code to individual customers for facilitating the formation of a centralised KYC registry

 
Mumbai: Setting up of a centralised know your customer (KYC) registry for the entire financial sector will be possible only after implementation of the unique customer identification code (UCIC), reports PTI quoting Reserve Bank of India (RBI) Executive Director G Padmanabhan.
 
"Once the UCIC is implemented across banks and financial institutions (FIs), it would be feasible to move towards a centralised KYC registry, which will eliminate duplication of efforts and refine the KYC/AML (anti-money laundering)/CFT(combating of financial terrorism) verifications across the financial system," he said addressing a banking event.
 
Earlier, the government had formed a working group to suggest ways to introduce unique identifiers for customers across different banks and financial institutions to set up a centralised KYC registry.
 
Banks have also been advised by the government to issue UCIC to individual customers for facilitating the formation of a centralised KYC registry.
 
Markets regulator SEBI is also advocating a one-time KYC requirement across the financial services sector.
 
The RBI official further said the Aadhaar number will complement the efforts in this direction as it has the potential as an authentication tool in financial transactions.
 

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