SEBI Current Affairs - 2019
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Market Regulator SEBI has formed a Committee on Corporate Governance under the chairmanship of Uday Kotak, the executive vice chairman and managing director of Kotak Mahindra Bank. The move is aimed at improving the standards of corporate governance of listed companies.
The panel which is headed by Uday Kotak will also include representatives of Corporate India, stock exchanges, professional bodies, investor groups, chambers of commerce, law firms, academicians and research professionals and SEBI.
The panel has been mandated to submit the report within a period of four months.
The mandate of the committee is to make recommendations on:
- Ensuring independence in spirit of independent directors and their active participation in functioning of the company.
- The steps that are need to be taken for improving safeguards and disclosures pertaining to related party transactions.
- To suggest measures for addressing issues faced by investors on voting and participation in general meetings
- The steps required for improving effectiveness of board evaluation practices.
- Suggest on issues pertaining to disclosure and transparency.
In April, SEBI unveiled the detailed corporate governance norms for listed companies. The new norms which are in alignment with the new Companies Act would be effective from October 1. The new norms are aimed at encouraging companies to adopt best practices on corporate governance. SEBI’s new norms provides for stricter disclosures and protection of investor rights including equitable treatment for minority and foreign shareholders.
SEBI is the statutory regulator for the securities market in India established in 1988. It was given statutory powers through the SEBI Act, 1992. SEBI’s headquarters is in Mumbai, Maharashtra.
SEBI’s mandate is to protect the interests of investors in securities, promote the development of securities market and to regulate the securities market.
The Key functions of SEBI are as follows: Regulating stock exchanges and other securities markets; Registering and regulating the working of intermediaries who are associated with securities markets in any manner; Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds; promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.
The Appointments Committee of the Cabinet (ACC) has appointed senior bureaucrat Ajay Tyagi (58) as the new chairman of the Securities and Exchange Board of India (SEBI).
Mr. Tyagi will have tenure of 5 years or till the age of 65 years or until further orders. He will succeed UK Sinha whose term ends on March 1, 2017. His name was recommended by the search-cum-selection panel headed by the cabinet secretary along with some other candidates.
About Ajay Tyagi
- Ajay Tyagi is 1984 batch IAS (Indian Administrative Services) officer of Himachal Pradesh cadre.
- Prior to this appointment, he was Additional secretary (investment) in the Department of Economic Affairs, Ministry of Finance, handling the capital market division.
- He had served as the chairman of the finance ministry-appointed panel which monitored the merger of the Forward Markets Commission (FMC) with the SEBI.
- He had represented India at the Financial Action Task Force (FATF), an intergovernmental body set up to combat money laundering, terror financing and other related threats.
- Currently he is also representing India at the Financial Stability Board (FSB), an international body to monitor global financial systems. He also had led the initiatives on corporate bonds markets.
About Securities and Exchange Board of India (SEBI)
- SEBI is the statutory regulator for the securities market in India established in 1988. It was given statutory powers through the SEBI Act, 1992.
- Mandate: Protect the interests of investors in securities, promote the development of securities market and to regulate the securities market.
- SEBI has is responsive to needs of three groups, which constitute the market, issuers of securities, investors and market intermediaries.
- It has three functions: quasi-legislative (drafts regulations in its legislative capacity), quasi-judicial (passes rulings and orders in its judicial capacity) and quasi-executive (conducts investigation and enforcement action in its executive function).
- Headquarters: Mumbai, Maharashtra.