BSE cracks down on 530 companies without a woman director
Stock exchange BSE has cracked the whip on 530 companies that have not appointed a woman director, asking them to pay up the fine for non-compliance, said an official.
"We have sent notices to 530 listed companies out of 4,262 companies that are eligible for trading. The total number of companies that are listed in BSE are 5,712 and out of them 1,450 have been suspended," the official, who didn't want to be named, told IANS over phone from Mumbai.
According to him, the BSE till date has issued advisory letters to 530 companies regarding levy of fines for non-appointment of women directors.
Markets regulator Securities and Exchange Board of India (SEBI) had stipulated listed companies should have at least one woman representative on their board. Several of the companied met the SEBI deadline of March 30 by finding suitable persons and some by appointing close relatives of promoters.
However, industry watchers said the BSE action will not be very effective. 
"The penalty amount is very low and is not a deterrant for non-compliance," Prime Database managing director Pranav Haldea told IANS over phone from New Delhi.
According to SEBI, listed companies that comply with the norm between April 1-June 30 would be levied a fine of Rs.50,000.
For companies that comply with the stipulation between July 1-September 30, the fine will be a total of Rs.50,000 plus Rs.1,000 per day from July 1 till the date of compliance.
For listed companies that appoint women directors on or after October 1, the fine is Rs.142,000 plus Rs.5,000 per day from October 2015 till the date of compliance.
For any non-compliance beyond September 30, SEBI may take any other action, against the non-compliant entities, their promoters and/or directors or issue such directions in accordance with law, as considered appropriate.
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    SEBI raises minimum contract size in equity derivatives to Rs5 lakh
    SEBI has raised minimum contract size for equity derivatives to Rs5 lakh from the next trading day after expiry of October 2015 contracts

    Market regulator Securities Exchange Board of India (SEBI) has raised the minimum contract size for equity derivatives to Rs5 lakh from Rs2 lakh earlier. 
    In a notification, SEBI said, the new provision shall be made effective from the next trading day after expiry of October 2015 contracts.
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    Chandra Prakash Jain

    5 years ago

    It will drive away small traders from derivative market . SEBI must think on reducing it a little bit .

    SC rejects Mallya's plea against ED, slaps Rs.10 lakh costs

    In a setback to liquor baron Vijay Mallya, the Supreme Court on Monday rejected his plea challenging criminal proceedings for wilfully disobeying an Enforcement Directorate summons seeking his presence relating to a $200,000 payment to a British company for displaying the Kingfisher logo during 1996-98 Formula 1 events.
    Dismissing the appeal, a bench of Justice J. Chelameswar and Justice Adarsh Kumar Goel also fined Mallya an "exemplary" cost of Rs.10 lakh that will go to the Supreme Court Legal Service Authority.
    Rejecting his plea, the bench in its judgment said: "We do not see any merit in the appeal. We are also of the opinion that the entire approach adopted by the appellant (Mallya) is a sheer abuse of the process of law."
    "Any other view of the matter would only go to once again establishing the notorious truth stated by Anatole France that 'the law in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets and to steal bread'," said Justice Goel pronouncing the judgment.
    Mallya had challenged a Delhi High Court verdict of May 21, 2007, turning down his plea against the ED summons for violating the now defunct Foreign Exchange Regulation Act (FERA) for not responding to the summon issued to him four times.
    He was summoned on four occasions - September 27, 1999, November 8, 1999, November 26, 1999 and December 21, 1999. 
    In the first instance, Mallya got summons after the date of appearance but for the subsequent two, he had sought the date and in the case of fourth, he had contended that the summons were not by registered post as required under the procedure.
    Taking a dig at Mallya over the tenor of his letter explaining his inability to appear on November 8, the court said: "From the tenor of the letter, it appears that it was not a case of mere seeking accommodation by the appellant (Mallya) but requiring date to be fixed by his convenience."
    "Such stand by a person facing a allegation of serious nature could hardly be appreciated. Obviously, the enormous money power makes him believe that the state should adjust its affairs to suit his commercial convenience," it observed.
    Holding that Mallya's plea required to be dismissed for more than one reason, the court said that the mere fact that the adjudicating officer chose to drop the proceedings against him "does not absolve" him of the "criminal liability incurred" by him by not responding to the summons to appear before the official in question.
    Mallya had allegedly paid $200,000 to Benetton Formula Ltd for displaying his Kingfisher logo in the Formula One World Championships that was to be held in London and other European countries in 1996, 1997 and 1998, allegedly without the Reserve Bank of India's prior approval in violation of the FERA. 
    His subsequent application to the finance ministry on June 19, 1996 seeking approval for the payment made to British company was rejected on February 4, 1999.
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