Blog Posts
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Regulating Companies: Whose Role is it Anyway?
In the case of listed companies, when it comes to corporate governance, there is a classic dichotomy in regulation. On the one hand, it is the Ministry of Company Affairs that is largely responsible for the implementation of the Companies Act, 1956, while it is SEBI that is responsible for implementation of the corporate governance…
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Directors’ Duties During Times of Crises
The unexpected market conditions in recent times have rocked corporate boards world over. Healthy companies have begun to declare less satisfactory results, while the unlucky one’s face extinction. Companies are increasingly being exposed to liabilities towards shareholders, creditors and other counterparties, and consequently, directors of such companies are having to face difficult conditions in which…
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SWFs and Capital Flows
The Indian Government’s latest position on sovereign wealth funds (SWFs) can be gathered from a recent speech delivered by the Governor of the Reserve Bank of India, Dr. Y.V. Reddy at a session on ‘The Role of Government-owned Investment Vehicles in Global Capital Flows’ in the International Capital Markets and Emerging Markets Roundtable held at…
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More on the Indian Derivatives Saga
While the legalities of several derivative transactions entered into between banks and corporates are pending consideration of courts, it appears that these matters have ended up in court in the first place because of unexpected market movements over the last few months which defied all prior indications and past market history. Livemint has a detailed…
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Amendments to Clause 49
SEBI has on April 8, 2008 issued a press release and circular amending certain provisions of Clause 49 relating to corporate governance, and can be viewed here: http://www.sebi.gov.in/Index.jsp?contentDisp=WhatsNewScroll&FilePath=/press/2008/200895.html The composition of board of directors has been required to be as under:(a) where chairman is an executive chairman, atleast half the board has to comprise of…
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Draft Report of the High Level Committee on Financial Sector Reforms
The Draft CFSR report is up on the Planning Commission website for public view and can be accessed from the following link: http://www.planningcommission.gov.in/reports/genrep/report_fr.htm A commentary which appeared in Business Standard is available at: http://www.business-standard.com/common/news_article.php?autono=319612&leftnm=4&subLeft=0&chkFlg=
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Direct Market Access to Institutional Investors
SEBI yesterday issued a circular to the BSE and NSE with a view to granting direct market access to institutional clients through the brokers’ infrastructure. The rationale for the move is described in the circular as follows: “Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange…
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Foreign Investment in the Small Scale Sector
The small scale sector has continued to receive protection from the Government when it comes to foreign investment, despite liberalisation pervading in the economy generally. It is time to alter that position, argues an editorial in today’s Financial Express: “Foreign direct investment (FDI) in small-scale industry (SSI)? It could be just what the sector needs.…
