COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Birla-led Sebi panel moots measures for shareholder protection

The first meeting of the committee on corporate governance formed by the Securities and Exchange Board of India held in Bombay today stressed on enhancement of long-term shareholder value and protection of sharholder interests.

The committee is chaired by Aditya Birla group chairman Kumarmangalam Birla (seen alongside in the photograph, before the meeting started).

Birla mooted the idea of division of the committee to focus on three constituents identified by it: shareholders, board of directors and the management.

A separate group will also be formed for suggesting the safeguards to be instituted by companies to deal with insider information and against insider trading.

The committee felt that it was essential to identify and define the rights, roles, responsibilities and accountabilities of the constituents. It felt that it would be neccessary to examine the present provisions and regulations, indicate the desired situation and identify the gaps between the two. (In the photograph alongside, the Bombay Stock Exchange president Anand Rathi can be seen in the middle and the National Stock Exchange managing director R H Patil on the right).

The next meeting of the committee will be held towards the end of June or early July. In the meantime, the sub-groups will formulate their views in respective areas.

The committee will take assistance of institutions which have worked in this field. Also, discussions will be held with institutional investors as they have a major role in ensuring good corporate governance.

The committee has members drawn from the Sebi, stock exchanges, accounting firms, the Institute of Chartered Accountants of India and consultancies.

UNI. Photographs: Jewella C Miranda

Business news