SEBI board, which met for the last time under the chairmanship of CB Bhave today, also decided to make ASBA mandatory for non-retail investors like QIBs and NIIs from 1st May 2011
Market regulator Securities and Exchange Board of India (SEBI) has said that it would send a recommendation to the Ministry of Corporate Affairs (MCA) to amend Clause 166 of the Companies Bill 2009, to disallow interested shareholders from voting on the special resolution of the prescribed related party transaction.
This will protect small and diversified shareholders in listed companies from abusive related party transactions. This view was taken based on the learning from the investigation in the matter of Satyam Computer Services Ltd, SEBI said in a statement today.
The SEBI board, which met last time under the chairmanship of CB Bhave also decided to make the application supported by blocked amounts (ASBA) facility mandatory for non-retail investors like qualified institutional buyers (QIBs) and non-institutional investors (NIIs) for public or rights issues from 1st May.
Making the initial registration of intermediaries for a period of five years, the market regulator said it would grant permanent registration on assessment of the performance and track record of the intermediary.
SEBI also decided that the currency derivative segment would have self-clearing members, who would be required to have net worth of Rs5 crore.
Mr Bhave would step down as SEBI chairman on 17th Febuary. Last week, the government appointed UTI AMC's chief UK Sinha as the next chairman of the SEBI, who would took charge from 18th February.
Asian Paints' decision to re-start the operations, however, did not suggest any improvement in the situation in Egypt. Other leading FMCG companies, Dabur and Marico, have temporarily shut down their plants in the Arab nation
New Delhi: India's leading paint company, Asian Paints, today announced it has commenced operations partially, at its two manufacturing units in Egypt, reports PTI.
The company had shut down operations at the two manufacturing units last week, in the wake of the ongoing political crisis in Egypt.
"The two plants of the company's subsidiary, SCIB Chemicals SAE, Egypt, which were shut due to prolonged curfew, have restarted the operations partially with effect from 6 February 2011," Asian Paints said in a filing to the Bombay Stock Exchange.
According to sources, the company's decision to re-start the operations, however, did not suggest any improvement in the situation in the country.
Asian Paints' two manufacturing units are located at an industrial area about 50 kilometres from Cairo.
Other leading FMCG companies, Dabur and Marico, have temporarily shut down their plants in the Arab nation.
According to Anand Shah, Research Analyst, Elara Securities India, Egypt contributes significantly to the sales in the Middle East (ME) region for Asian Paints.
The ME region witnessed a turnover of Rs650 crore out of the total international revenues of Rs1,215 crore registered by the company in 2009-2010, said Mr Shah.
Last fiscal, consolidated revenue of Asian Paints had stood at Rs5,125 crore.
In 2002, the company had acquired controlling stake in SCIB Chemicals, one of the top five paint companies in Egypt.
Thousands of protesters have taken to the streets of Cairo and other cities of Egypt demanding the end of president Hosni Mubarak's 30-year rule.
The company's scrip settled at Rs2,506.80 per share during the afternoon trade, up 1.06% from the previous close on the Bombay Stock Exchange.
Even after receiving the clearance from the environment ministry, the challenges before the South Korean steel giant to set up a plant in India are far from over
Posco India Pvt Ltd, the unit of South Korean steel giant, is likely to face fresh agitations from activists who say that they are not in a mood to surrender an inch of land to for the project in Orissa.
"Though union environment minister Jairam Ramesh has given clearance for the Posco project, we will not surrender an inch of land for the project at any cost and will resist the land acquisition process," Abhaya Sahu, convenor, Posco Pratirodh Sangram Samiti (PPSS) told Moneylife, in Mumbai today.
Last week, Posco received a conditional clearance from the environment ministry to set up a 12 million tonne per annum plant along with a captive power plant and a port near Paradip. The project would be the largest foreign direct investment in India after 1991.
The state government has said that it will start acquiring land for the project within the next couple of weeks.
"We don't want to disturb a well-established agrarian economy of the region. We don't oppose industrialisation. But it should not happen at the cost of the agriculture economy," Mr Sahu said. "PPSS has closed down check gates. Posco officials, police and the administration will not be allowed to come inside the proposed acquisition area."
Last week, the environment minister gave the green signal for the project, listing 60 conditions-28 for the steel plant and 32 for the port. "These 60 conditions are just an eyewash. The government has been writing false statements and submitting to the Ministry of Environment and Forests (MoEF)," Mr Sahu alleged.
The Posco project requires about 4,000 acres, of which nearly 3,000 acres is forest land, the state owns 567 acres and 438 acres is private land. In May 2010, the state government started land acquisition after the project received conditional and forest clearance in 2007 and 2009. However, Mr Ramesh issued a stop-work order in August last year, after receiving complaints of violation of forest norms.
Questioning the decision of the MoEF, Mr Sahu said, "Government-appointed committees-the Saxena Committee and the Meena Gupta Committee-have reported that the clearances given to Posco were illegal. However, suddenly we find that Mr Ramesh has given the clearance for the project, which is quite surprising, given the negative remarks in the committee reports."
Although Posco has received the environment clearance, there will be other hurdles in its path like acquiring mines, rehabilitation of locals and allocation of raw material linkages. Posco has said on its website that the government of Orissa has assured a mining lease for 600 million tonne reserves, which would be adequate for the 12mtpa plant in Paradip for about 30 years. Nevertheless, Posco will be conscious that there is a lot of difference between signing the papers for such projects and their execution.