Provision on the anvil for cos not moving Sebi before moving HC, says Sinha

Provision on the anvil for cos not moving Sebi before moving HC, says Sinha

FPJ BureauUpdated: Thursday, May 30, 2019, 10:38 AM IST
article-image

Mumbai : Based on High Court’s observation, Securities and Exchange Board of India (Sebi) is working on a provision in case company/companies do not abide by the regulation of approaching Sebi before approaching High Court (HC) or NCIB (National Crime Investigation Bureau).

The purpose of the regulation is that companies have to come to Sebi first, chairman of Sebi, UK Sinha said during a summit in Mumbai. Sinha added, “There has been observation by the High Court on what is the role of Sebi asking the companies to come to SEBI and then go to High Court? If they do not do that is that a violation. The purpose of the regulation is that companies have to come to SEBI. Otherwise, if they do not come to Sebi and go directly High court and now NCIB (National Crime Investigation Bureau), what is the violation involved that is a question mark. We are making provisions for that.” He also took the opportunity to talk about the success of SME financing at the summit. He said 200 companies have been listed in BSE and NSE together and other 200 are lining to be listed. “I am also happy to note that the experiment with SME financing has been a reasonable success,” he added. Past experiments in 2002 and 2010 were unsuccessful, but this time around Sebi has seen success, with reasonable amount of trading taking place. He added that investors have benefited from this. Without pointing at any company as such Sinha said that there was “no compelling” reasons to review the norms regulating such board members. He said this while replying to reporters at the summit. “The appointments, sacking and role of independent directors are prescribed in the Companies Act as well as Sebi regulations. Sebi regulations in this regard are tighter than those under Companies Act,” Sinha said. “There is always need to review norms. But at this stage I don’t see any compelling need to review them,” he said. This comment comes at the backdrop of Tata-Mistry fiasco.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...