Satyam Scam: SEBI Bars Price Waterhouse From Auditing Any Listed Company For Two Years [Read Order]

The Securities and Exchange Board of India (SEBI), on Wednesday, barred Price Waterhouse (PW) from auditing any listed company in India for a period of two years for its alleged role in the multi-crore Satyam scam."Entities/firms practicing as Chartered Accountants in India under the brand and banner of PW, shall not directly or indirectly issue any certificate of audit of listed companies, compliance of obligations of listed companies and intermediaries registered with SEBI and the requirements...

SEBI Moves Contempt Plea Against Sahara For Obstructing Aamby Valley Auction

The Securities and Exchange Board of India (SEBI) on Tuesday moved the Supreme Court with a contempt petition against Sahara group for allegedly obstructing the board from carrying out the auction of Aamby Valley property in Pune, as directed by the court.Mentioning for an urgent hearing of the contempt plea, SEBI counsel Pratap Venugopal informed the bench headed by Justice Ranjan Gogoi that the auction process was to start from today but Sahara has been “obstructing” by suspending the...

Why Vohra Committee Report Not Acted Upon ? What About Fast Track Courts For Trying Legislators? SC

“Income under each head should be probed. All these should be inquired. The public needs an answer. The people should get to know the state of affairs” “It is not enough that a legislator discloses a legitimate source of income. It is important to inquire that how did the person get in that position to earn that income”. -  Justice ChelameswarThe Supreme Court bench headed by Justice J Chelameswar had several pointed questions to ask to the Centre and CTBT on taking action against politicians...

Assets Case: "What Sealed Cover When All Details Already In Newspapers?" Justice Chelameswar To CBDT Lawyer

The final hearing in the case pertaining to amassing of wealth by MPs and MLAs began in Supreme Court with Justice J Chelameswar in a lighter vein asking the CBDT how content of  an affidavit "supposedly being filed in sealed cover" carrying details of all the MPs and MLAs was already in newspapers.Justice Chelameswar said he had seen it almost all main newspapers and even in vernacular papers. Senior advocate Radhakrishnan then clarified that only the names of the MPs and MLAs were in sealed...

7 Key Highlights Of SEBI Board Meeting: Rules For Investment In Distressed Firms Relaxed

The SEBI Board met in Mumbai on Wednesday and took the following decisions: Restructuring in distressed companies Presently, relaxations from preferential issue requirements under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, and from open offer obligations under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, are available for lenders undertaking restructuring of listed companies in distress through Strategic Debt Restructuring (SDR) scheme in...

Make ITC, Finance Ministry & SEBI Parties In PIL Against LIC Investment In Tobacco Giant ITC: Bombay HC

The Bombay High Court has directed petitioners of a PIL opposing the idea of the Life Insurance Corporation of India holding one-third equity stake in tobacco giant ITC, to implead the Union Ministry of Finance, ITC, Ministry of Industries and Commerce and SEBI as respondents.The petitioners are a group of seven people, two of them being members of Tata Trusts, R Venkatramanan and Lakshman Sethuraman.Venkatramanan is the managing trustee of the Sir Dorabji Tata Trust and is responsible for...

SAT ‘Strictly’ Interprets Takeover Code, Strikes Down Application Of SEBI’s Informal Guidance

Takeover Code has been one of the most contentious Regulations under the Securities Law. The Code deals with ‘control’ over the listed company, disclosures and public announcements by acquirers and persons acting in concert, triggering of open offer, disclosures by promoters of the company listed, etc. The practical application of the Code is very ‘strategic decision-making process’ and the Code has greater significance in cases of merger and amalgamation, acquisition or strategic investment....

SEBI’s Administrative Circulars Outside SAT’s Appellate Jurisdiction: SC [Read Judgment]

The Supreme Court, in a recent judgment in National Securities Depository Ltd vs Securities Exchange Board of India, has held that “administrative orders such as circulars issued under the Securities Exchange Board of India (SEBI) Act are obviously outside the appellate jurisdiction of the Securities Appellate tribunal”.The court observed that action taken by Sebi in its administrative and legislative capacity cannot be appealed at the Securities Appellate Tribunal (SAT) i.e., the scope of power...

Decoding Interest Rate Options

Hola traders in finance! There is a new financial derivative introduced by Reserve Bank of India (RBI), effective from January 31,2017. Traders can now gain by speculating on interest rates as well. This will enable all domestic entitles that have underlying interest rate risk to hedge their risk by trading in newly christened derivatives.What are interest rate options? Typically an interest rate option is the one that derives its value form the change in interest rates. Before we delve into...

Informal Guidance or Informal Ordinance?

Preferential allotment of shares is the process by which a company increases its share capital base by issuing further shares to existing or new members. A company may be required to come out with preferential issue for a variety of reasons depending upon the circumstances such as for launching a new project, to meet company’s working capital requirements, to maintain debt-equity ratio or otherwise. In case the company which is desirous of making a preferential allotment of shares is a listed...

The Tata Episode: Corporate Governance And The Continuing Influence Of Promoters

It is generally understood that corporate governance norms ought to address agency problems between various actors in a company. Moreover, in companies with concentrated shareholding, the agency problems between controlling shareholders (referred to in India as “promoters”) and minority shareholders tend to be rampant, and hence corporate governance measures need to be targeted to address that agency problem. The corporate governance regime in India has considerably evolved over the last two...

SC extends Roy’s parole; asked to pay Rs 300 Cr more

Sahara group chief Subrata Roy secured a huge relief from the Supreme Court today when it extended till September 16 the parole granted to him on humantarian grounds following the death of his motherThe extension came with a condition that he has to deposit to Rs 300 crore with Security and Exchange Board of India (SEBI).It is to be noted that even on July 11 while extending his parole to today the special bench headed by chief justice T S Thakur had told Roy’s senior lawyer Kapil Sibal:"But you...