SEBI bats for greater corporate governance
Board feels process had to go beyond a boxticking exercise and should be conducive to growth of its company
The International Advisory Board of the Securities and Exchange Board of India (SEBI) advocated greater corporate governance in Indian firms to protect the interests of all stakeholders, the watchdog said on Saturday.
“The advisory board deliberated over the recent developments on corporate governance in India at its seventh meeting, held on Friday and Saturday, here,” the market regulator said in a statement.
The board observed that a matrix of expertise would make the board diverse and balanced for the effective functioning of a company.
“There has to be transparency in board appointments and removal process, and [the] audit committee should focus on forward-looking risk assessment in addition to retrospective evaluation,” pointed out the board members.
Asserting that board evaluation was an important element in corporate governance, the members felt the process had to go beyond a box-ticking exercise and should be conducive to the growth of its company.
“The best evaluation is an The Securities and Exchange Board of India on Saturday announced a reduction of 25 per cent in brokers’ fees and decided to amend regulations to enable the market participants to make payments to the regulator through a digital mode. “Taking into consideration the projected income and expenditure of Sebi for the next three financial years, the board decided to reduce the fees payable by broker by 25 per cent from Rs200 million (Dh10 million) of turnover to Rs15,” Sebi said. exercise in self evaluation of the company’s performance and effectiveness in terms of its mission, financial returns, strategy, business model and social responsibility,” said the statement. The meeting also took note of the extant framework for investment advisory business, including the role of mutual fund distributors and regulatory arbitrage between the investment adviser and mutual fund distributor providing advice.
On migration to fee-based advisory model from commission, the board said the transition has to be gradual and in tandem across regulatory segments for uniformity.