Financial Daily from THE HINDU group of publications
Sunday, Mar 23, 2003
Financial Daily from THE HINDU group of publications Sunday, Mar 23, 2003 |
|
|
|
|
|
Markets
-
Regulatory Bodies & Rulings No `period of limitation' possible on probes: SEBI K.R. Srivats
NEW DELHI, March 22 THE Securities and Exchange Board of India (SEBI) has rejected the demands of industry to put in place a system of "period of limitation" for taking up investigations on price manipulation and other capital market misconducts. "We cannot agree to this suggestion. There cannot be limitation on investigations. It must be understood that investigation is a mechanism for collection of evidences. As and when complaints are received and fresh information is before us, we will take up investigations irrespective of the time period," a senior SEBI official said here. At the same time, the SEBI official said that the capital market regulator did have some internal guidelines that required the investigating officers to complete the preliminary or full investigation handled by them within a particular period of time. Citing the recent experiences where companies had been required to furnish documents on transactions that were conducted in the year 1994, some of the industry representatives have been suggesting that an eight-year period was good enough to be considered for "limitation". In simple terms, a section of industry do not want the capital market regulator to take up cases relating to a time period that is more than eight years before the year in which investigations are taken up. The SEBI official, who did not wish to be identified, also rejected the demands of industry to allow the proposed Central Listing Authority (CLA) to undertake the role of post-listing monitoring and compliance with the listing agreements. "The CLA has to come of age before further responsibilities like post-listing monitoring and compliance with listing agreements are given to them. We also don't want the stock exchanges to immediately turn into mere trading platforms," the official said. The initial role of CLA would be confined to "processing the applications" made by corporates, mutual funds or collective investment schemes for letter of recommendation for listing and also for making recommendations on the listing conditions or provisions of the listing agreement. The authority would be established from a date to be specified by the SEBI Board and is expected to bring in uniformity in scrutinising listing applications besides reviewing the listing agreements periodically.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|