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Companies trying to manipulate market, says SEBI chief

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By NewsGram Staff Writer

A watch is being kept on listed companies to see if they are complying with capital market regulator Securities and Exchange Board of India (SEBI) rules or trying to manipulate the market to serve vested interests, its chief said on Friday.

“Some companies are trying to manipulate the market by avoiding paying long-term taxes,” SEBI chairman Upendra Kumar Sinha told news channel CNN-IBN on Friday, adding the watchdog did not hesitate to act against some of the largest corporates found violating rules.

“We notice even a slightest attempt to manipulate (the market). As we caught (some companies) in wrong-doings in their IPOs (initial public offerings), no manipulation is possible henceforth.”

To prevent manipulation from the beginning, SEBI introduced call option to buy shares at an agreed price on the opening day of any company’s IPO.

“As a pro-active and sensitive regulator, we act against any company if we anticipate something going wrong (with it) even before action is sought,” Sinha said.

For instance, SEBI allowed some start-ups to list their shares on the exchange for trading even before there was demand for their shares, he said.

Claiming that there was no political pressure on the regulator, the former IAS officer said the it had worked with many governments earlier and maintained its stand.

“Even the Supreme Court (on July 6) upheld our order to regulate GDR (global depository receipts) that are raised by Indian companies and listed on overseas exchanges like Germany.

Noting that it was unfair to assume its crackdown on capital markets had impacted filing of red prospectus for IPOs, Sinha said on the contrary, filing for IPOs had gone up during the last two years.

“As market watchdog, we facilitated IPOs, fund-raising, electronic filing by them,” he said.

Observing that corporates would invest when the macro-economic climate was good, Sinha said traditional way of raising money to manipulate (stock) markets had gone away.

Denying that he was unfair to Indian conglomerate Sahara in dealing with its violation of rules, he clarified that even the Supreme Court had upheld his actions against the company for defaulting on paying back its investors.

“As a regulator, we deal with matters in a very dispassionate way. It is mischievous allegation that I had acted against Sahara in a partisan way,” Sinha added.

(With inputs from IANS)

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15 Public Sector Firms in India violate Sebi’s Norms of appointing atleast One Woman Director on their Respective Boards

These rules are aimed at ensuring gender diversity in boardrooms

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Fifteen PSUs including ONGC and Indian Oil Corporation failed to comply by Sebi's gender diversity directives, Wikimedia

New Delhi, Dec 16, 2016:  Sebi’s regulatory norms of appointing at least one woman director on the respective billboards till December 13, has not been followed by as many as 15 public sector firms including ONGC and Indian Oil Corporation. Reports of it went to the Parliament on Friday.

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As per the new Sebi directives and the Company’s Act, 2013 all the listed firms were required to have at least one woman director on their boards from April 1, 2015. These rules are aimed at ensuring gender diversity in boardrooms.

As on December 13, 2016, Bharat Petroleum Corporation, GAIL, Power Finance Corporation, Rural Electrification Corporation, Chennai Petroleum Corporation, Scooters India, MMTC and Fertilisers & Chemicals Travancore have not appointed women directors on their board, Corporate Affairs Minister Arun Jaitley said in a written reply to Lok Sabha, mentioned PTI.

It was mandatory for PSUs to appoint one women director to their boards
Arun Jaitley Wikimedia

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Other non-complaint firms are State Trading Corporation of India, Hindustan Photo Films Manufacturing Company, Bharat Immunologicals & Biologicals Corp, Rashtriya Chemicals and Fertilisers and Neyveli Lignite Corporation, he added.

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According to the Minister 169 and 1,106 companies listed on the NSE and BSE respectively had not appointed women directors as on September 30, this year. To avert this discrimination by acting against listed firms without a mandatory woman director, Sebi in April 2015 had announced a minimum Rs 50,000 fine. Further action against non-compliance of the directives include action against promoters and directors, if they remain non-compliant beyond six months.

A four stage penalty structure is announced by the market watchdog wherein fines would increase with the passage of time. It had asked the stock exchanges to levy the fines as the violation relates the Listing Agreement.

prepared by Saptaparni Goon of NewsGram. Twitter: @saptaparni_goon