Breaking

Showing posts with label sebi. Show all posts
Showing posts with label sebi. Show all posts

Friday, 6 May 2016

18:42

Non Compliance of Rules in Appointing Woman Director to the Boards of Public Sector Banks and Public Sector Enterprises

Non Compliance of Rules in Appointing Woman Director to the Boards of Public Sector Banks and Public Sector Enterprises
The status as on March 31, 2016 for the listed companies that have not complied with the requirement of appointing woman director on their Board is as under:
Active Companies
Suspended Companies
Total
BSE
201
1174
1375
NSE
42
149
191

Fines have been levied on these companies as specified in the Securities and Exchange Board of India (SEBI) Circular No. CIR/CFD/CMD/1/2015 dated April 8, 2015.

The status as on March 31, 2016 for Public Sector Enterprises and Public Sector Banks which have not complied with the requirement of appointment a woman director is as under:
NSE
BSE
Public Sector Enterprises
17
22
Public Sector Banks
2
2
Fines have been levied on these companies as specified in the Securities and Exchange Board of India (SEBI) Circular No. CIR/CFD/CMD/1/2015 dated April 8, 2015.

All efforts are being made by the Government to ensure compliance with the rules of appointing a woman director to their Board.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.


Source:PIBNEWS


0
By at No comments:
Labels: , , ,

Wednesday, 4 May 2016

06:58

Mutual Funds: Industry paid more in salaries than aggregate profit earned in FY15

Mutual Funds: Industry paid more in salaries than aggregate profit earned in FY15

According to the data sourced from Association of Mutual Funds of India, the industry paid a total of Rs 1,832 crore in salaries for the year 2014-15 and it was 105 per cent of the total amount that the industry earned in profits during the year.

While salary disclosure of top executives by mutual funds on Monday revealed that some of them earned even more than salaries drawn by heads of leading corporate houses, a look into the overall employee expenses of fund houses shows that in the financial year ended March 2015, the industry paid more in salaries than the aggregate profit earned.
According to the data sourced from Association of Mutual Funds of India, the industry paid a total of Rs 1,832 crore in salaries for the year 2014-15 and it was 105 per cent of the total amount that the industry earned in profits during the year.
While the data on profitability and wage expense for the top five players shows that the employee cost stood at 56 per cent of the total profit earned by them, industry insiders say that the high wage to profit ratio for the industry is largely on account of the lower profitability and relatively higher salary payout by the smaller fund houses.
“The smaller fund houses either earn less profit or are making losses but they pay in line with the industry standards and that result into a higher wage to profit ratio for the industry as a whole,” said a senior official with a leading mutual fund.
0
By at No comments:
Labels: , , ,

Saturday, 5 March 2016

06:47

SEBI set to get tougher with wilful defaulters

SEBI set to get tougher with wilful defaulters

The Securities and Exchange Board of India (Sebi) will make it difficult for so-called wilful defaulters from raising fresh equity or debt from the public, according to two people familiar with the agenda of the regulator’s next board meeting.

The move will mark yet another effort by the Indian government, the Reserve Bank of India (RBI) and now Sebi to crack down on the problem of bad loans.
A wilful defaulter is a company or individual who borrowed money and has no intention of paying it back, has diverted the money to some other purpose than the one for which it was borrowed, or has sold the asset acquired or developed with the money without the lender’s knowledge.

Sebi will, however, allow such entities to raise funds through rights issues or share sales to institutional investors, said one of the two persons, asking not to be identified. The entity will need to disclose itself as a wilful defaulter in the offer document if it chooses to go in for a rights issue (sale of shares to existing shareholders), or a qualified institutional placement, added this person

Sebi’s board meeting is scheduled for 12 March. A Sebi spokesperson did not respond to an email seeking comment. In January 2015, Sebi issued a draft paper proposing that wilful defaulters would not be allowed to sell shares, debt securities and non-convertible preference redeemable shares to the public. The paper suggested that wilful defaulters be barred from taking control of another listed entity, but that they be allowed to participate in counter offers to deal with hostile takeover bids.

Each of these restrictions would be applicable if the issuer, its promoter, group company or director of the issuer of such securities were in the list of wilful defaulters published by RBI, the stock market regulator said. “The final regulations will be based on the discussion paper that dealt with the wilful defaulters,” said the second person, who too asked not to be identified. In addition to restrictions to fund raising, such entities and persons will be ineligible to serve as market intermediaries or run mutual funds or alternative investment funds, added the second person.

Bankers said such restrictions would help.
RBI has been asking banks to get tough on wilful defaulters and has a tough set of rules in place which say that anyone tagged a wilful defaulter cannot raise fresh funds from the banking system.

The banking regulator, however, has been of the view that such defaulters also need to have their access to capital markets restricted. “If someone has knowingly stopped repaying banks, then why should he be allowed to access the capital markets? Any such limitation on the borrower would definitely be a power for the banks since they can squeeze these wilful defaulters better,” said Ashwani Kumar, chairman and managing director of Dena Bank and chairman of the Indian Banks’ Association.

While RBI has not disclosed the quantum of loans that fall under the wilful default category, data has emerged from some large public sector banks. Loans worth Rs.11,700 crore given by State Bank of India have been locked up as non-performing assets as nearly 1,160 defaulters have wilfully decided not to repay, PTI reported on 24 February.
Another state-owned lender, Punjab National Bank (PNB), declared 904 borrowers who owed it a combined Rs.10,869.71 crore as of December-end as wilful defaulters. PNB added 140 companies to the list of wilful defaulters in the December quarter alone.

While banks believe that banning wilful defaulters helps their cause, corporate lawyers caution against a sledgehammer approach. “Wilful defaulters should be restricted from raising funds from public because there is no accountability to return funds to shareholders. However, Sebi should steer clear of a blanket restriction on fund-raising by defaulters as this would potentially limit the chances of a revival of the company and the existing shareholders would end up paying the price,” said Tejesh Chitlangi, a partner at IC Legal.
Parag Bhide, senior associate at Advaya Legal, said Sebi should approach the issue on a case-by-case basis. “A complete ban on wilful defaulters may not be good for existing shareholders, including retail investors. Further, such a lifetime exile from financial markets may not be constitutional. Ideally, there should be some time limit (three-five years) for such a ban.”


0
By at No comments:
Labels:

Sunday, 25 October 2015

22:26

Finance Ministry steps up ties with RBI; to nominate Shaktikanta Das to RBI board

Finance Ministry steps up ties with RBI; to nominate Shaktikanta Das to RBI board

The finance ministry is set to nominate Economic Affairs Secretary Shaktikanta Das to the board of Reserve Bank of India, signalling an easing of what has sometimes been a tense relationship. At the height of unease between the two sides a few months ago, the finance ministry had downgraded its representation on the central bank's board to the level of additional secretary.

A notification to this effect is expected to be issued shortly, said a government official aware of the development. That will mean Shaktikanta Das joining the Reserve Bank board along with Financial Services Secretary Anjuly Chibb Duggal.

The RBI Act mandates that its affairs be governed by a central board of directors.

Traditionally, the seniormost bureaucrat in the finance ministry's department of economic affairs has been a member of the board. But, in an unprecedented move, the finance ministry had in June nominated Additional Secretary Ajay Tyagi to the board in place of then finance secretary Rajiv Mehrishi.

This added to speculation about differences between the finance ministry and RBI that had broken out over a number of issues including interest rates, recommendations of the Financial Sector Legislative Reforms Commission, the new monetary policy framework and the creation of a monetary policy committee.

Mehrishi had played down talk of a rift at the time, saying the nomination was up to the government. "I have only one point to make — surely the government has the right to decide who represents it," he had told reporters on August 3 at a news conference.

Incidentally, the ministry had also nominated the joint secretary, capital markets, to the board of the Securities & Exchange Board of India ( Sebi) in place of the economic affairs secretary.

The finance ministry subsequently upgraded this to secretary level, reverting to the situation that was prevalent earlier.
North Block is keen to step up its engagement with regulators in the financial sector as the country prepares for the next round of reforms amid global challenges, particularly the tightening of monetary policy by the US Federal Reserve.

The relationship has improved substantially since then, allowing officials at the two key institutions charged with running the country's economy to communicate with ease, said two persons aware of this.

RBI has also moved swiftly to overhaul policies governing overseas investment in the Indian bond market, a long-pending proposal, and allowed local firms to issue rupee debt abroad.

In its monetary policy review earlier this month, RBI cut interest rates by a more-than-expected 50 basis points, cheering the government that has been seeking lower cost of funds to boost the economy. A basis point is 0.01 percentage point.

Source:BankingUpdates.
0
By at No comments:
Labels: , , , ,