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Richa Mishra

Agra , Sept. 11

INDIA Inc might think there's a lot of regulatory overlap between the Securities & Exchange Board of India and the Department of Company Affairs, but the SEBI Chairman, Mr G.N. Bajpai, doesn't. On Thursday, he maintained that there was no regulatory overlap between the two authorities.

Speaking to a select media gathering here at the inaugural session of the 31st national convention of the Institute of Company Secretaries of India, Mr Bajpai said, "There's no overlap with the DCA. We have perfect co-ordination with the Department." In fact, DCA and SEBI have a co-ordination committee for limited purposes that is looking into vanishing companies, he said. "The committee is co-chaired by the DCA Secretary and myself. Apart from this, there are various other committees where we have representatives," he said.

On the market regulator's move notifying amendments on Clause 49 of the Listing Agreement even as India Inc opposed the provisions of the Companies (Amendment) Bill, 2003, on independent directors, Mr Bajpai said, "If need be, the market regulator may dilute the norms envisaged in the Listing Agreement to keep in tune with the Companies Act. Our regulation is not in confrontation with the Companies Act."

"The recommendations of the NR Narayanamurthy Committee are not in any way in deviation with those of the Naresh Chandra Committee on Corporate Audit and Governance report or the Companies (Amendment) Bill. We are stating this over and above what will be proposed in the Companies Bill," the SEBI Chairman said.

"All the regulations we are making will be in conformity with the Companies Act. Now market dynamics demand that whatever initiatives are to be taken in the matter of corporate governance be taken as early as possible. Therefore, we have gone ahead with the recommendations of the Naryanana Murthy report," he said.

On whether SEBI will be taking any action on the recent announcement made by Mr Rahul Bajaj on demerger of Bajaj Auto Ltd, he said, "Unless I know the case I cannot comment. If there is something that has any impact on anything, we will have to look into it. This case has not come before me. Let it come before me, then I will tell you."

Whether monitoring of investor protection should be given to SEBI, he said, "Even the JPC has recommended that it should be handled by SEBI. It is up to the Government to decide on this."

On the issue of warning investors to be cautious in the current bull-run, Mr Bajpai said, "Yes, I have been warning investors. It is not that we are warning them on this particular bull run. I have been warning investors generally that while investing in the securities market you should take adequate care."

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