No compromise on good governance norms: Sebi

Sebi has said listed companies must follow higher corporate governance standards and there will be no dilution to the new norms.

By: Press Trust of India | New Delhi | Published:September 2, 2014 11:03 am
The regulator's doors are open if firms want to discuss any apprehensions they might have and those can be resolved to help them adapt to the new regulations, Sebi chairman UK Sinha said. PTI The regulator’s doors are open if firms want to discuss any apprehensions they might have and those can be resolved to help them adapt to the new regulations, Sebi chairman UK Sinha said. PTI

Unperturbed by the industry’s intense lobbying, markets regulator Sebi has said listed companies must follow higher corporate governance standards and there will be no dilution to the new norms kicking in from next month.

At the same time, the regulator’s doors are open if firms want to discuss any apprehensions they might have and those can be resolved to help them adapt to the new regulations, Sebi chairman UK Sinha said. He made it clear that there can be no compromise on safeguarding the interest of investors, adding this was of paramount importance in the new corporate governance norms coming to effect from October 1.

The new regulations give more powers to minority shareholders on various issues such as related party transactions, appointment of directors and CEO salaries, while listed companies would also have to mandatorily appoint a woman director and put in place whistleblower mechanism.

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  1. A
    arvind
    Sep 2, 2014 at 1:58 pm
    Sebi is having control over the IPO share applications and allotment procedure but SEBI is not checking the source of the income of the investors i.e. from where the money has come into their account. If this factor is checked in the large number of accounts that too having familiar or identical names and suious names it will found that it is inside trading. In India SEBI has completely failed to look after "Insider Trading" in Companies and although large number of "Inside Trading" is taking place and also fact that all data is available with SEBI, I do not understand who is preventing SEBI from taking actions against these "Insiders". If SEBI undertakes such exercise SEBI will found that at least 100 Rajat Gupta are also in India as origin of Rajat Gupta lies in India only.
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