Regulations
SEBI rejigs committee on disclosure, accounting standards

The 17-member SEBI Committee on Disclosures and Accounting Standards is now chaired by Tata Sons' Director-Finance Ishaat Hussain, while members include NSE chief Ravi Narain, HDFC AMC Managing Director Milind Barve, Bombay Shareholders' Association's AK Bakliwal and IT major Wipro's CFO and Executive Director Suresh Senapathy

New Delhi: Markets regulator Securities and Exchange Board of India (SEBI) has revamped its expert committee on disclosure and accounting standards, which is mandated to suggest ways for improving disclosure framework for listed companies and accounting practices of various market entities, reports PTI.

 

The SEBI Committee on Disclosures and Accounting Standards (SCODA) was originally set up in 2006 under the chairmanship of noted chartered accountant YH Malegam to advise the market regulator on disclosure requirements by companies at listing time and thereafter, as also about the accounting standards to be followed by various intermediaries.

 

The 17-member panel is now chaired by Tata Sons' Director-Finance Ishaat Hussain, while members include NSE chief Ravi Narain, HDFC AMC Managing Director Milind Barve, Bombay Shareholders' Association's AK Bakliwal and IT major Wipro's CFO and Executive Director Suresh Senapathy.

 

Besides, the panel also comprises representatives from SEBI itself and from the Finance and Corporate Affairs ministries, as also senior executives of Kotak Mahindra, SBI Capital Markets, Jubilant Life Sciences, M&M and Deloitte Haskins and Sells, as per a new notification from SEBI.

 

Other members are ICAI Governing Council Member CA Nilesh Vikamsey, International Management Institute Director Asish Bhattacharya and KP Saidharan from the Comptroller & Auditor General of India.

 

One of the major terms of reference of this committee is to advise SEBI on issues related to disclosure requirements in the offer documents, application forms, advertisements and other mode of mass communication by the issuers.

 

Besides, the SCODA also advises SEBI on issues related to the continuous disclosure requirements pertaining to listing of equity or debt of an issuer and on matters related to disclosure requirements of various market intermediaries.

 

It will also advise SEBI on issues for addressing the operational and systemic risks, if any, in primary market.

 

Its terms of reference also include ensuring "smooth implementation of accounting standards, statements, guidance notes and studies evolved by the Institute of Chartered Accountants of India (ICAI) to the extent that it pertains to disclosures in the Capital Market documents and for disclosures related to Intermediaries."

 

Besides, it would suggest how best to coordinate between SEBI and ICAI, such as by constituting study teams for providing inputs to Accounting Standards Board of ICAI and Making references to ICAI for consideration of ASB and Capital Markets Committee and for providing inputs to ICAI for evolving new accounting standards and reviewing the existing accounting standards.

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Pantaloon pays Rs7.5 lakh to settle investor grievance case with SEBI

SEBI said Pantaloon paid Rs6.5 lakh towards settlement charges and Rs1 lakh as legal expenses, pursuant to which the proceedings initiated by the regulator stand settled

Mumbai: Capital markets regulator Securities and Exchange Board of India (SEBI) has agreed to settle a case related to Pantaloon Retail failing to redress investor grievances after the company agreed to pay Rs7.5 lakh towards settlement charges and legal costs.

 

SEBI had passed an order in October 2011, wherein it had imposed a penalty of Rs5 lakh on Pantaloon Retail (India) Ltd after finding the company to have failed in redressing the investor grievances within the stipulated time.

 

While Pantaloon had challenged SEBI's order in an appeal before the Securities Appellate Tribunal (SAT), it later proposed to settle the case through SEBI's consent mechanism, which allows for settlement of the matter in certain cases.

 

In its final consent order in the matter, SEBI has now said that Pantaloon has paid Rs6.5 lakh towards settlement charges and Rs1 lakh as legal expenses, pursuant to which the proceedings initiated by the regulator stand settled.

 

SEBI said Pantaloon representatives had a meeting with SEBI's Internal Committee in in April, after which they had proposed the revised consent terms involving these payments to settle the proceedings.

 

The proposal was accepted by SEBI's High Powered Advisory Committee, as there were no investor grievance pending against the company. The panel of whole-time members of SEBI also accepted these recommendations of the high-powered committee.

 

After the company made the payments towards settlement of the proceedings, the SAT allowed it to withdraw its appeal to enable SEBI to pass the consent order, the regulator said.

 

However, SEBI maintained that its consent order is "without prejudice" to is right to initiate enforcement action against Pantaloon if any of the representations made by the company is later found to be untrue or incomplete or if the company breaches any of the consent terms or undertakings.

 

SEBI had imposed penalty on Pantaloon in October 2011 after it found that large number of grievances were pending for more than six months against it as on 30 June 2010. The company was asked to redress these grievances and submit an Action Taken Report within a stipulated time, but it failed to do so and therefore necessitate an action, the regulator had said at that time.

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COMMENTS

Vaibhav Dhoka

4 years ago

It is perfect submission that SEBI's consent order is eyewash.The punishment in terms of fine should actually be deterrent so that the crime should not be repeated.Here with SEBI this mechanism is like taking holy bath in GANGES.They become pure for past crime and next crime can be done with clean slate.

nagesh kini

4 years ago

SEBI's consent mechanism "without admitting guilt" is an eyewash.
The corporates and their directors under no circumstances should be permitted to get away. It is setting a bad precedent and nothing prevents them from repeating the offense, having got off lightly. Corporates like Pantaloon and the RIL group break the regulations with impunity, knowing full well that they can get away with mere rap on the knuckles and a measly 'settlement'.
Instead each of their Managing and other directors must be fined heavily in their personal capacities and not from company funds, like the SEC does in the US.
These white collared criminals should be jailed too just to drive home the message that they simply can't get away with blue murder!

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