SEBI ON THE AWARENESS SIDE FOR PLEDGING
With the debacle of Satyam Chairman SEBI had made useful amendments in the month of January. SEBI has provided for disclousre norms when the promoters of the listed company pledged there shares. The amendments mandates that the promoter should disclose to the company the details of the pledged shares.
The Disclosure shall be made to the stock exchange in any quarter if the total no. of shares pledged by the promoters exceeding 25000 shares or 1% of the company which ever is lower.
Steps taken by SEBI are commendable but these are some of the dark areas which could have been considered:
1. The amendments do not made compulsory in the event of indirect pledging of shares of the listed company promoters.
2. The mandated disclosure for share pledging are restricted to the promoters, it could be extended to others also.
3. Negative pledging situation has been covered or not yet to be disclosed.
4. The time frame of 14 days is longer than the time frame mandated for other disclosure under the take over.
SEBI did a commendable job with the disclosures after the Satyam Saga we hope to see SEBI being the one of the world’s best regulator in the future.
February 13, 2009 at 3:42 pm
This is a classic case of Locking the stables after the horses have bolted! The Paradox of SEBI is that it is an inefficient organization but staffed by brilliant and efficient people at the top. The Financial System is dominated by crooks and as long as we have the kind of Judiciary and the judicial system, NOTHING is going to change. SEBI can only wring its hands in frustration. Pray, give me one single instance of our Judiciary having punished any politician/powerful person since independence. I think the best way to demonstrate seriousness is to HANG these Rajus and their cohorts after a quick trial. They may not have taken lives but have taken scores of people’s livelihood. Both deserve the same punishment.
February 19, 2009 at 3:28 pm
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