|
||
|
||
Home >
Money > Business Headlines > Report September 14, 2002 | 1119 IST |
Feedback
|
|
Sebi weighs advance ruling on transactionsBS Bureau in Bangalore The Securities and Exchange Board of India is examining a proposal on giving advance ruling on transactions and may impose heavier penalties on violation of its norms, Sebi's executive director D N Raval said. At a conference of Indian Association of Corporate Treasurers in Bangalore on Friday she said instead of giving a ruling after a certain corporate transaction has been completed, the corporates could send it to Sebi for getting it vetted before completing the transactions. This would help companies to conclude transactions without the fear of violating any of the Sebi norms, Raval said. She said Sebi is looking at the possibility of including such a proposal without amending Sebi norms. She said the Securities and Exchange Commission in the US has a similar system. It provides a 'no action' letter to corporates after vetting the transactions before hand. Raval said Sebi was looking at the possibility of imposing heavier fines on companies which violate its norms. She said softer penalties has not yielded much results so far. Raval said Sebi wants to examine the role of independent directors in companies. She said Sebi has found that in certain companies, independent directors get nearly 80 per cent of their total remuneration. Such undefined arrangements need to be examined, Raval said. Raval said the role of institutional investors in companies need to be increased. This would lead to better stability and transparency in the companies, she said. Raval said Sebi will start cracking down on `vanishing' companies which dupe investors. She said Sebi plans to introduce tougher norms to arrest the trend of 'vanishing'' companies. ALSO READ:
|
ADVERTISEMENT |