SEBI Chairman UK Sinha feels a remuneration committee should decide on salaries on executives. Addressing an event organised by International Management Institute (IMI), Sinha said there is also a need for a large presence of institutional investors to make boards more effective.
"I think SEBI should have a role in dealing with accounting malpractices in listed companies," he said.
He said the remuneration committee should be headed by an independent director and most of the members should also be independent directors. "There should be disclosure of agenda items of AGM/EGM on Group’s Web site or in the notice to the stock exchanges." he said adding, "...of course there should be enough safeguard in terms of strategic issues.
Moreover, he said there should be stricter norms for selection of independent directors. "We are exploring mechanism to review company independent directors' role," he added.
Sinha unveiled long-term vision of the regulator. As a part of this, he said, "Similarly placed companies need to be treated equally. Public and Private Sector companies are treated differently by the Government and even SEBI. This should be removed."
He also commented on the high promoter holdings in Indian companies compared to their global peers. “We in SEBI are looking at these issues. No decision is expected tomorrow, it will take some time,” he emphasised.
