SEBI proposes to disallow interested shareholders from voting on related party transactions
Moneylife Digital Team 07 February 2011

SEBI board, which met for the last time under the chairmanship of CB Bhave today, also decided to make ASBA mandatory for non-retail investors like QIBs and NIIs from 1st May 2011

Market regulator Securities and Exchange Board of India (SEBI) has said that it would send a recommendation to the Ministry of Corporate Affairs (MCA) to amend Clause 166 of the Companies Bill 2009, to disallow interested shareholders from voting on the special resolution of the prescribed related party transaction.

This will protect small and diversified shareholders in listed companies from abusive related party transactions. This view was taken based on the learning from the investigation in the matter of Satyam Computer Services Ltd, SEBI said in a statement today.

 The SEBI board, which met last time under the chairmanship of CB Bhave also decided to make the application supported by blocked amounts (ASBA) facility mandatory for non-retail investors like qualified institutional buyers (QIBs) and non-institutional investors (NIIs) for public or rights issues from 1st May.
Making the initial registration of intermediaries for a period of five years, the market regulator said it would grant permanent registration on assessment of the performance and track record of the intermediary.

SEBI also decided that the currency derivative segment would have self-clearing members, who would be required to have net worth of Rs5 crore.

Mr Bhave would step down as SEBI chairman on 17th Febuary. Last week, the government appointed UTI AMC's chief UK Sinha as the next chairman of the SEBI, who would took charge from 18th February.

1 decade ago
"who would took charge from 18th February"

As I mentioned elsewhere, Moneylife ought to employ people who atleast know how to construct grammatically correct sentences.
R Balakrishnan
1 decade ago
If this can be extended to all equity issuance (the obnoxious and unfair section 81, promoter warrants, esops, etc ) it would be wonderful. This is one single area where minority shareholders are taken for a ride by all Indian promoters.
Replied to R Balakrishnan comment 1 decade ago
yes you are correct.........
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