The founder of Finsec Law Advisors and former Sebi ED said that this might act as a self-fulfilling prophecy, causing liquidity to dry up and prices to fall
The broker can’t end up paying every time there is a problem; the whole system will collapse, says the founder of Finsec Law Advisors and former Sebi executive director
Sandeep Parekh said investors need to take responsibility if they are working with unregistered entities.
Experts believe much will depend on whether the court buys RBI's argument that public policy will be hurt by allowing Docomo an exception to its current policy.
There has been breach of corporate governance norms in the Tata Sons case whereby information not meant for certain people has been passed on says Sandeep Parekh, Founder of Finsec Law Advisors. He was speaking to CNBC-TV18 about non-public information believed to have been shared by listed Tata companies to non-directors.
What Is Grex?
By: Sandeep Parekh, Finsec Law Advisors
RPTs: Taking Shareholders For Granted?
By: Sandeep Parekh & Shashank Patil, Finsec Law Advisors
Talking to CNBC-TV18, experts Manan Lahoti of Luthra & Luthra, Deven Choksey of KR Choksey Shares and Sandeep Parekh of Finsec Law Advisors gave their views on the new SEBI norms.
Sandeep Parekh, a corporate lawyer, says there are 2 significant differences in the ODI circular. One, Sebi has tightened the definition of regulated entities. Second, P-notes cannot be issued to entities residing in a country not compliant with Anti Money Laundering and Combating Financial Terrorism regulations.
Sebi has tightened insider trading norms by widening the definition of "insider" and "connected person".
Market regulator Sebi has announced a new set of corporate governance norms after a board meeting in Delhi today. An independent director can now be on the board of a maximum of seven companies and only three if the person is acting as a whole time director. Sebi has announced that all companies must have a mandatory whistleblower mechanism.
Sandeep Parekh of Finsec Law Advisors feels that the KM Chandrasekhar Report will not turnaround sentiment because fundamentals are not changing. But he says that procedural glitches of the investment process for foreign participants will get reduced, which is one factor that could change sentiment.
Those consequences became clear this week when the 3-year time period to comply with the 25% minimum public shareholding norm came to an end. On June 4th SEBI passed an interim order including sanctions against promoters and directors of 105 companies that have not yet increased public shareholding to 25%.
Sandeep Parekh of Finsec Law Advisors told CNBC-TV18 that the clarifications issued by the banking regulator Reserve Bank of India (RBI) involved a lot of subjective interpretations and welcomed the decisions to extend the implementation time to 18 months from one year.
After the Supreme Court today turned down Sahara group's plea seeking more time for repaying its investors, Sandeep Parekh, founder, Finsec Law Advisors believes the Securities and Exchange Board of India (Sebi) will now go against other Sahara Group's entities.
Market regulator Securities and Exchange Board of India (SEBI) on Wednesday ordered freezing of bank accounts and attachment of all properties of two Sahara group firms and top executives, including Subrata Roy.
Sebi chairman UK Sinha today warned against violation of public shareholding norms. The market regulator added that the government is committed to ensuring that public sector companies comply with the minimum public shareholding norms and will not be seeking any extension. It has also decided to tweak takeover and OFS norms.
Sandeep Parekh of FinSec Law Advisors is unsure why the circuit filters were not triggered at 10 percent levels and started only at 15.5 percent. As several unintended consequences are associated with these trades, Parekh believes, "Pre-set rules on this would be a welcome step and hopefully, SEBI will push for this and not just the exchanges."
Reacting to the announcements made by the Sebi board after its meeting on Saturday evening, corporate tax lawyers HP Ranina, Prithvi Haldea and former executive director at Sebi Sandeep Parekh explain to CNBC-TV18 the various aspects of the announcements and the probable impact on foreign investment and the markets.
A host of pending bills got Cabinet approval late on Thursday. To become law, these bills need to be ratified in Parliament. Adi Godrej, president, CII and Sandeep Parekh, Founder, discuss the impact of these reforms.
Experts tell CNBC-TV18 that even though SEBI's listing guidelines are painful, they are not prohibitive in nature.
After a high voltage drama, Oil and Natural Gas Corp (ONGC) finally scrapped though as its share auction marginally fell short of full subscription.
Institutional Investor Advisory Services (IIAS) advice to shareholders of Hindalco to vote against its preferential issue of warrants has sparked off a debate about the viability of preferential allotments.