BUSINESS
RBI simplifies just a few provisions of the overly complex regulations for CICs
Considering that the regulations relating to Core Investment Companies have become elaborate and complex over the years, the recent simplification is merely a small step forward to several steps backwards taken in the past
BUSINESS
Erring auditors may escape direct heat from SEBI’s wrath
SEBI’s recent order in the Brightcom Group case indicates it may not take any direct direction against auditors for negligence, leaving that aspect to other specialised regulators
BUSINESS
SEBI’s Brightcom order: Many firsts in a complex area that needs many more orders for conclusive jurisprudence
It was an interim order but SEBI has dared to venture into an area not quite touched upon till now: The responsibilities of promoters to account for asset value losses when offloading shares
BUSINESS
SEBI's order in the CARE Ratings scandal tackles the symptom, not the cause
Regulators have failed to find an alternative for the Issuer-Pays Model where entities seeking independent opinions on securities they plan to issue are selecting the credit rating agencies and negotiating and paying the fees for the service, which creates perverse incentives to influence top managements
BUSINESS
SEBI’s FAQs on insider trading clarify on many important issues
SEBI’s FAQs on insider trading are not binding by law but they give the regulator’s interpretation of the rules to the market
BUSINESS
SEBI pushes for responsible messaging by advisors and analysts
SEBI's code for advertising by investment advisors and analysts is timely but its coverage is very wide and compliance can be cumbersome
BUSINESS
SAT's decision on Arshad Warsi case shines spotlight on SEBI's cavalier attitude on restraint orders
Freezing of bank accounts and assets and debarment of persons from securities markets is such a serious restraint on freedom and yet almost routinely done and that too en masse against a group of people without any discrimination or differentiation
BUSINESS
SEBI needs to be consistent in how it defines net worth
The market regulator’s decision in two cases, where its guidance was sought, has led to two different interpretations on how to calculate net worth
BUSINESS
IBC’s main fault was in setting expectations too high
Strap: Blame for a delayed insolvency problem can be laid at the door of litigation, multiple parties with conflicting interests and other factors. But these should have been anticipated from the beginning
BUSINESS
Anti-money laundering laws get another layer of complexity
A lower control threshold that triggers beneficial ownership provisions under the anti-money laundering law is raising fears it will affect foreign investment
BUSINESS
SEBI's Youtube Pump And Dump Case: Arshad Warsi and family beneficiaries or victims?
While media has been quick to deliver a guilty verdict, information from the SEBI order suggests the actor and his family may have lost more than they gained
BUSINESS
SEBI’s radical proposals on shareholders' agreements
The regulator wants full disclosure, board opinion on these matters and shareholder approval is needed for new and existing agreements
BUSINESS
Companies Act does not provide for ‘permanent’ directors on boards
SEBI’s proposal is that all directors should be subject to the majority shareholders’ will. But they already are since the same majority can remove any such ‘permanent’ director at any time
BUSINESS
SEBI’s anti-money laundering guidelines need to be pared to the bone
New SEBI guidelines for financial intermediaries are almost unreasonably detailed and will raise compliance costs and efforts
BUSINESS
Do stock market investors need more protection?
For lawmakers, regulation is a tough choice between the devil of caveat emptor (let the buyer beware) and the deep sea of micromanagement that hobbles the stock market with onerous bureaucratic controls. Better investigation capabilities and stiffer penalties will deter those who defraud investors
BUSINESS
Sebi order against ‘dubious’ Telegram channels is an eyeopener
The order against an alleged pump and dump scheme displays SEBI’s use of latest technology combined with a healthy dose of old-fashioned detective work
BUSINESS
Money laundering law’s wide powers and scope need pruning
The PMLA should focus only on serious crimes instead of the long list of scheduled offences it deals with, including white collar offences in the securities market
BUSINESS
SEBI’s latest effort at tracking beneficial owners is a never ending exercise
Finding ultimate beneficial owners is important because of the dangers of tax evasion, drug trafficking, corruption and terrorism. But too many countries still allow camouflaging of these owners and there are clever lawyers and accountants to help
BUSINESS
Insolvency Code: Latest restructuring will strengthen it, but grey areas may remain
Poor drafting of the Code meant that certain rulings did not match the intention of lawmakers. The changes propose to deal with this and also improve the code’s effectiveness
BUSINESS
Royalty payments to group companies needs stronger regulation to balance shareholder interests
Royalties are necessary but the present regulatory regime rely heavily on independent directors who aren’t sufficiently empowered to protect outside shareholders
BUSINESS
SEBI cannot ignore SAT decisions while deciding cases
The appellate tribunal has said SEBI must comply with its orders and the precedents set unless they are set aside. This should bring relief to several parties contesting cases
BUSINESS
Budget 2023: It’s high time to make the tax code simple and fair
Two areas which the finance minister could consider in the coming Budget: simplified and fair tax rates/slabs and uniformity in determining whether gains on sale of assets are long term or short term
BUSINESS
The fuzzy world of corporate governance laws
Regulating corporate governance by rules is like regulating morality by law. It will rarely be wholly successful and what’s worse will be followed in letter than in the supposed spirit
TRENDS
The anti-demonetisation petitions – an exercise in futility
The Supreme Court has dismissed the petitions against demonetisation and held it was legal and constitutional. Six years after the event, one wonders what impact any ruling could have. By holding the demonetisation as valid in law, this ruling has created a precedent for future demonetisation
