Skip to main content

New governance norms likely for bourses

By

The Securities and Exchange Board of India (Sebi) is looking to align the remuneration paid to directors and key management personnel at stock exchanges in line with provisions of the Companies Act, said two people with direct knowledge of the matter. This is part of the comprehensive review of governance and ownership norms at stock exchanges and clearing corporations which the regulator had embarked on in February.
The review will focus on increasing the governance, accountability and transparency at these market infrastructure institutions, said these people on condition on anonymity. On February 11, the Sebi board had decided to do this review in the wakeof exchanges getting listed and observing certain governance lapses. Sebi had invited comments from the market to finalise a list of proposed norms.
“A discussion paper is being prepared,” said the first person cited earlier. “The regulator is also looking to increase transparency in the appointment of Public Interest Directors (PIDs) and independent directors.
A Sebi spokesperson didn’t answer an email seeking comments sent on Wednesday.
“Sebi is also considering forming a new committee to examine the larger governance and ownership issues at the exchanges,” said the second person.
On June 2, the regulator had separately formed a panel headed by Uday Kotak, executive vicechairman and managing director of Kotak Mahindra Bank Ltd, to review norms for governance in listed firm.
Under the current Stock Exchange and Clearing Corporation (SECC) norms, which were finalised in 2012, public interest directors are entitled to just a sitting fee in-line with Companies Act 1956. 
Additionally, remuneration paid to key managerial personnel has to be ratified by the nomination and remuneration panel, which is made of majority public interest directors.
However, the Companies Act 2013 stipulates that the total managerial remuneration payable by a public company, to its directors, including managing director and whole-time director, and its manager cannot be more than 11% of the net profits of that company. For any one managing director; or whole-time director or manager, total remuneration shall not exceed 5% of the net profits.
The Hindustan Times, New Delhi, 24th July 2017

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more