Tag: Securities Regulation
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Pyramid Saimira and the Powers of the SEBI
A few weeks ago, the SEBI passed an order (WTM/KMA/60/04/2009) in the Pyramid Saimira case, which raises questions pertaining to insider trading. The order resulted from SEBI’s investigation into the affairs of Pyramid Saimira, highlighted in this post. The particular sequence of events is discussed in several reports, linked here and here. In its order…
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RTI and the Corporate Sector
The Right to Information Act, 2005 has been successful in inducing transparency in the decision-making process of the government. However, it has been reported, quoting the Chief Information Commissioner, that the there is a need for the concept of right to information (RTI) under the Act to be “directly applicable to corporate houses”. The report…
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SEBI’s Proposal to Revitalise Rights Issues
Rights issues offer an important avenue for companies to raise capital, especially when bank financing may be difficult owing to a credit crunch as we are currently witnessing. However, in the Indian context, the procedure for carrying out a rights issue has been as onerous as it is for a full-blown public issue. This is…
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Securitisation and Debt Recovery – A Centre-States Conflict?
The Constitution has devised an elaborate scheme of distribution of legislative powers, and the competence of a legislature to enact a law has normally been challenged by a private citizen to whom the law applies. The latest battleground looks to be the fairly recent structure of securitization, debt recovery and other FI-friendly legislation. The first…
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New PCAOB Rule: Impact on U.S.-listed Indian Companies
The PCAOB or Public Company Accounting Oversight Board is a body established in the aftermath of Enron and the enactment of Sarbanes-Oxley and reviews the intensity and the integrity of audits by auditors on a regular basis. Until recently, the requirements of review pertaining to foreign companies (such as Satyam) that are registered with the…
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SAT Sets Aside Orders Against NSDL and CDSL
In 2007, the Adjudicating Officer of SEBI had passed orders against National Securities Depository Ltd. (NSDL) and Central Depository Services India Ltd. (CDSL) imposing a penalty of Rs. 5 crores (Rs. 50 million) and Rs. 3 crores (Rs. 30 million) respectively. The adjudication arose out of the scam in connection with various initial public offerings…
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Analysis of Recent SAT Rulings on Insider Trading and FUTP Against Dilip Pendse
(The following post is contributed by Bhushan Shah, an Indian lawyer currently pursuing a dual degree LL.M from New York University School of Law and National University of Singapore) The Securities Appellate Tribunal (‘SAT’ or ‘Tribunal’ ) recently set aside two orders (collectively referred as ‘Impugned Orders’ ) passed by market regulator i.e. Securities Exchange…
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The “Madoff Scheme” and Failure of Regulation
The expression “Ponzi scheme” is not something we are terribly familiar with in India. To be honest, I heard of this concept only a couple of years ago. But now, these words are resonating in the media after the alleged fraud by Bernard Madoff came to light last week. New York Times’ City Room Blog…
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Thoughts on the ASBA process – Part II
(The following post is contributed jointly by Prerak Ved of Crawford Bayley & Co. and Yogesh Chande of Platinum Partners.) In continuation of the thoughts/concerns raised in Part I posted earlier, stated below are some further thoughts/concerns on the ASBA process, including those arising out of SEBI’s press release dated December 04, 2008 bearing PR…
