SEBI : AN EFFECTIVE REGULATORFor growing and dynamic country like

SEBI : AN EFFECTIVE REGULATORFor growing and dynamic country like india, capital markets play an important tool of not just attracting domestic and foreign investment but also reflect the state of affairs of our country. SEBI has been entrusted with responsibility for everything that is right or wrong in Indian capital markets. With changing times, challenges turn up thereby the need for reform rises.. JOURNEY SO FAR > SETTLEMENT SYSTEM: introduction of T+5 rolling settlement in 1998, now gradually opting for T+2 basis. >DEMATERIALISATION OF SHARE CERTIFICATES: need was felt to avoid theft or forgery or delay of share certificates.>FOSTERING MUTUAL FUNDS: by relaxing KNOW YOUR CUSTOMER (KYC) norms, popular and much safe.>EYE ON FIIs: revised FII limits regularly and imposed checks and balances to curb flow of black money into Indian markets. >IPO REFORMS: strict vigil on usage of issue proceeds, greater disclosure of companies and their accounts, introduction of e-IPO procedure electronic bidding. >GRIEVANCE REDRESSAL: SCORES ( SEBI COMPLAINTS REDRESS SYSTEM) to assist investors lodge complaints in a structured way. CHALLENGES AHEAD > need for a robust framework to curb INSIDER TRADING and to upgrade its manpower and capacities to deal with situations.> Issue of fraud CIS (collective investment scheme) have to be dealt with. > Introduction of regulatory changes in primary and secondary markets. >focus on supervision of security market intermediaries such as fund managers. POWER SECTOR ENERGY POLICY of INDIA is predominantly controlled by ministry of power, ministry of coal, ministry of new renewable energy and administered by PSUs. The massive breakdown of electricity in 2012, distribution losses, overload on grid, power scarcity has once again thrown the focus on health of power sector Few reforms include on>GRID COLLAPSE: its a symptom of sickness caused by technical deficiencies and political efficiency. Frequency falling below 49hertz and failure or tamper if circuit breakers can cause a grid collapse. The solution lies in restructuring SEBs (STATE ELECTRICITY BOARDS) put an end to FINANCIAL mismanagement, need for a national grid or smart grid, reducing losses through efficient management. >POWER SCARCITY: serious demand supply gap during summers due to theft and substandard equipment. Improve power generation strategy by use of techy up gradation, fuel mix, use of non conventional sources, control input cost.>SIMPLIFY BID STRUCTURES AND ENCOURAGE COMPETITION: to reverse the flow of falling private sector investment in electricity generation, the need arises to boost generation by completion of project on time, clear finance concerns, ensure fuel security, segregation of risks among players. > TRANSMISSION STRATEGY with focus on national grid, interstate connections, optimization of transmission cost.> CONSERVATION STRATEGY: focus on demand side management, load management, techy up gradation to provide energy efficient gadgets.JUDICIAL REFORMS >DISTURBING TRENDS OF JUDICIAL ACTIVISM: PIL need to be used for protection and guardian to protect right of citizen and not correcting act of commission or omission of executive decisions.>LAWYERS STAY AWAY FROM COURT: frequent conflicts between police-lawyers when police refuse to file FIRs. Results in bail application difficult in their absence, litigants feel delay and frustrated, frequent adjournments and boycott of courts. Its time for Supreme Court to enforce its ruling in this aspect. > JUSTICE DELAYED IS JUSTICE DENIED AND .. JUSTICE HURRIED IS JUSTICE BURRIED>NUMBER OF JUDGES TO POPULATION LOW (include MALIMATH COMMITTEE REFORM): India (10 lakh pop)10; usa107; Canada75>LACK OF ADEQUATE INFRASTUCTURE: SPECIALISATION required, training of staffs, e courts, amend archaic laws--CrPC, CPC, INDIAN EVIDENCE ACT. >ACCOUNTABILITY FOR JUDICIARY: LOWER COURTS have accountability to higher courts but no independence to innovate. HIGHER COURTS have independence but not accountable to lower courts or any (even in case of proved misbehavior go scot free, and prefix JUSTICE is not removed). >AGE OF HCs and SCs controversy: during 150th Bombay HC celebrations, PM advocated raise of age of judge of HC from 62-65. Reasons include competent authority; matured and experienced learner; may not opt for post retirement work.> NEED FOR ALL INDIA JUDICIAL SERVICES: will have representation all over India to give a secular look; corruption can be minimized through competitive authority postings. Central Pollution Control Board
A central institution established to set environmental standards for all parts of the country focuses on strengthening of CPCB and its preparedness to undertake various measures as suggested by environmental statutes.
It focuses on the following outputs/ aspects -

* Facilitate reprioritization/ reengineering of CPCB scheme with a view to increasing its efficiency, transparency and accountability.

* Assess the overall physical and financial outcomes and impact of CPCB scheme, as well as its cost effectiveness, during the Five Year Plan.

* Improve the quality of implementation and enhance the efficiency and accountability of the delivery mechanism.
issues

* The CPCB does not have sufficient teeth for pollution control and its infrastructure resources are not adequate to deliver the mandate.

* Although CPCB and respective SPCB are two independent institutions located at two different levels, they need to function jointly/cohesively and in a coordinated manner. The performance of CPCB in terms of its impact on pollution abatement and control depends largely on the efficiency and efficacy of SPCBs, CPCB should, therefore, have a stake in the governance of state boards. For this purpose, there must be representation of CPCB in the governing board of all SPCBs. This practice is being followed presently in Tripura.

* Presently there is no inbuilt performance review system of CPCB at regular interval by MoEF. The review should include both performance budgeting and perspective planning of CPCB.

* A committed and qualified strong workforce is required if CPCB has to become a Centre for Excellence for pollution control. In order to attract desired people there must be enough provision for training and exposure visits of the scientific staff so that they are updated with new technological development taking place across the globe.

* Availability of financial resources should be ensured if CPCB has to perform its mandate efficiently. Presently CPCB is entirely dependent on Government for funds. Accordingly, there must be quantum jump in financial support by Government to CPCB.

* It is also desirable that CPCB should reduce its dependency for funds on MoEF and look forward to other avenues.

* In general, pollution control strategies are based on regulations as is evident from the enactment of a large number of regulatory laws over the years. Inadequate emphasis has been laid on strategies based on technologies or comprehensive information to stakeholders..

* Environment being a common property resource can be handled properly through collective efforts rather than enforcing the regulations. Here the CPCB has to play a proactive role in the future. CPCB should work more closely with local communities and NGOs for creating awareness and knowledge about pollution abatement and control.

* There is a need for closer coordination with other Ministries and organizations which are directly or indirectly related to pollution control.
Suggestions for some priority programs of CPCB are listed below -

* Prepare and monitor action plans for Critically Polluted Areas (CPAs).

* Develop and implement, on a pilot scale, PPP models for setting up CETPs, CTDFs, CBMTDFs and STPs.

* Prepare and implement an action plan for major cities for treatment, reuse and recycling of sewage and effluents.

* Promote R&D in development of low cost technology for effluent and sewage treatment, including ZLD, wherever feasible.

* Explore outsourcing of functions such as training and awareness.

* Strengthen the monitoring and enforcement of emission and effluent standards both for point and non-point sources.

Inland Waterways Authority of India (IWAI) was set up in October 1986 vide IWAI Act 1985 declared through Acts of
Parliament come under the purview of Central Govt/IWAI; other waterways under the respective State Govts.
IWAI is mandated to take up

>Infrastructure development & regulation on NWs ( new waterways)
>Techno- economic feasibility studies
>Advise the Central Govt on IWT matters ( inland water transport)
>Assistance to States in IWT development
Constraint in the Development of IWT

* Diversion of water for irrigation, industrial and other needs reducing the flows in the rivers resulting in the reduction of depth and shoal formation.

* Excessive silt loads from erosion of uplands due to bad catchment management and increased deforestation.

* Inadequate river conservancy measures, resulting in gradual deterioration of waterways.

* Non availability of adequate navigational aids resulting in unsafe passage and high travel time.

* Inadequate vertical and horizontal clearances for plying vessels of economic size in many traditional waterway routes.

* Lack of adequate terminal facilities at the loading and unloading points being non-existent and where existent being inadequate
FORWARD MARKET COMMISSION
The Forward Markets Commission is a regulatory body for commodity markets in India. The
forward contracts in commodities are regulated as per F.C.( R ) Act, 1952 by this body. Inherent objective is to achieve price stability by means of price discovery and risk management. The Commission also collects information regarding the trading conditions in respect of goods to which any of provisions of Act is made applicable. It also advises Central Government regarding recognition of associations.Limitations of FMC
Following are the limitations of FMCs
a. Option trading prohibited
b. Functions as a Government department with limited autonomy with respect to
1. Recognition / de-recognition of exchanges
2. Regulation of intermediaries
3. Financial and administrative autonomy.
c. Market expansion has put heavy pressure on the FMCs coping capacity.Issues and Challenges

Strengthening of and Autonomy for the Regulator:
Currently, the commission is an arm functioning under the Ministry of Consumer Affairs
and it looks after the working of futures exchanges also and needs to seek government permission for many decisions.
.
Increasing the breadth and depth of the market
For increasing breadth and depth of market, there is necessity of participation of farmers/
aggregators and other hedgers as well as participation of banks and mutual funds.

Improving the Governance of Exchanges and Intermediaries
Possible way to improve this can be stricter enforcement of legal and regulatory provisions
and improvement in competencies and transparency.
Standardization of contract designs and quality parameters across the market.

Capacity Building: FMC, Exchanges, Warehouses, Assayers.
R and D in Commodity market governance and structural issues. BY NEHA NINAWE
REFERENCES:the Hindu, Indian express, news on air, net digging

CORPORATE GOVERNANCE :

CORPORATE GOVERNANCE :
-VINAY KUMAR THAMMI

* DEFINITION: its a system by which corporations are direscted and controlled.

* The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community.

THE ROLE OF CORPORATES IN INDIA:

1. Economic growth and development.

2. Government services and schemes implemnted via the publivate partnership(PPP) mode and hence has a mjor hand in the shaping of indias future

3. Role in improvement of social indicators like education, health, water, basic services.

4. Role in imports and exports and fortifying the ties with our major trading partners

5. Role of corporates in disaster risk managemnet and post disater relief managemnet.

6. Corporate social responsibility to remove the inequalities and develop those areas not being concentrated by the government.

7. With the uhering in of LPG, corporates have undeniable role in trade and commerce and basic service provider

8. With the governmnet moving away from its role in service providing by the way of disinvestments , corporates have a greater role to play.

9. Bridges the gender justice and encourages the merit and skill development.

10. Dividents of demography can be fructified with active intervention of corporates.

11. Helps in inclusive growth and financial inclusion, this being reflected in PC emphasizing its role in 12th five year plan.

12. Helps the economies in coping up with the financial crisis


* The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and otherstakeholders) and specifies the rules and procedures for making decisions in corporate affairs.

* PRINCIPLES OF CORPORATE GOVERNANCE: TheCadbury Report(UK, 1992), the Principles of Corporate Governance (OECD, 1998 and 2004), theSarbanes-Oxley Actof 2002 (US, 2002) has speicified following principles;

* Rights and equitable treatment of shareholders

* Interests of other stakeholders

* Role and responsibilities of the board

* Integrity and ethical behavior

* Disclosure and transparency

* NEED FOR CORPORATE GOVERNANCE:

* The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market.

* Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in.

* It is also known to have a positive influence on the share price of the company.

* Having a clean image on the corporate governance front could also make it easier for companies to source capital at more reasonable costs.

* It matters for both the clients (in the form of Improving access to capital, Improving performance) and the corporate (for value addition, Reducing investment risk, Avoiding reputational risk, Developing capital markets )

* Dynamic changing structure of ownership




* Importance of social responsibility

* Proliferation and ubiquitous corporate scams in corroboration with state and nonstate entities.

* Regulate acquisition, mergers, takeovers.

* Liberalization and its associated developments, i.e. deregulation, privatization and extensive financial liberalization has made it important.

* Greater role of corporate in the presnt world effecting wider array of public. Hence their regulation and control takes primacy over all others.



* EVOLUTION OF CORPORATE GOVERNANCE FRAMEWORK IN INDIA:

* Companies act of 1956 provided for basic framework for regulation of all the companies in india.

* Securities Contract Regulations Act, 1956 provided for rules and provisions to be complied by the companies.

* SEBI Act, 1992 empowered it to control the corporate in listings and recognitions and enforce discipline in the share markets.

* A separate ministry of corporate affairs has been set up in the government to look into such issues.

* A committee set up under the chairman ship of rahul bajaj by CII , the CII released the code called Desirable Corporate Governance. It looked intovarious aspects of Corporate Governance and was first to criticize nominee directors and suggested dilution of government stake in companies.

* SEBI had set up a Commission under Kumarmanlagam Birla. This committee covered issues relating to protection of investor interest, promotion oftransparency, building international standards in terms of disclosure of information.

* The Department of Companies Affairs (DCA) modified the Companies Act, 1956. It undertakes periodic review and brings about amendments in the Companies Act, 1956. In 1999, the Act introduced the provision relating to nomination facilities for shareholders and share buybacks and for formation of Investor education and protection fund.

* The Department of Corporate Affairs constituted Naresh Chandra Committee in 2002. The committee talks extensively about the statuary auditor-company relationship, rotation of statutory audit firms/partners, procedure for appointment of auditors and determination of audit fees, true and fair statement of financial affairs of companies.

* SEBI appointed Narayan Murthy Committee in 2002. Its report mainly focuses on and makes mandatory recommendations regarding responsibilities of audit committee, quality of financial disclosure, requiring boards to assess and disclose business risks in the companys annual reports.

* Clause 49 of the Listing Agreement : has enlisted following requirements for the corporate governance;

* Independence of board

* Independence of directors

* Duties and remuneration of board and directors

* Role of audit committee and auditors.

* Appointments and powers of independent directors.

* In December 2009, Ministry of Corporate Affairs specified Voluntary Guidelines on Corporate Governance. These guidelines provide for a set of good practices, which will 8help the companies to strengthen their internal governance processes and may be voluntarily adopted by the Indian Public companies.

* In March 2012, Ministry of Corporate Affairs constituted a committee under the Chairmanship of Mr. Adi Godrej, Chairman, Godrej Industries Limited, to formulate policy document on Corporate Governance. In September, 2012 the Committee submitted its document, specifying seventeen guiding principles on corporate governance.

* The Companies bill waiting to become companies act 2013, mandates the novel CORPORATE SOCIAL RESPONSIBILITY principle. This would enhance the corporate governance.




ISSUES IN CORPORATE GOVERNANCE:

* Value based corporate culture

* Holistic view

* Compliance with laws

* Disclosure, transparency, & accountability

* Corporate governance and human resource management

* Innovation

* Necessity of judicial reforms

* Globalization helping Indian companies to become global giants based on good corporate governance

* Lessons from Corporate failure
Inclusion of ethics in corporate governance is the important aspect in the improvement of corporate governance.
ETHICAL CORPORATE GOVERNANCE

1. shortest - definitions is, to quote Lord Moulton, "obedience to the unenforceable".

2. Business ethics(alsocorporate ethics) is a form ofapplied ethicsorprofessional ethicsthat examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.
NEED FOR ETHICS IN BUSINESS:

* Ethics help make relationships mutually pleasant and productive- imbibes a sense of community among members- a sense of belongingness to society.

* Ethics are the guiding principles for any endeavour.

* To stop business malpractices

* Improve customers confidence

* Survival of business

* Safeguarding customer rights

* Protecting the interest of employees and shareholders

* Develop good relations

* Healthy competition and consumer satisfaction.


RECENT INITIATIVES TO ENHANCE CORPORATE GOVERNANCE IN INDIA:

1. Green Initiatives in the Corporate Governance :The Ministry of corporate affairs has allowed paperless compliances by the companies and Registrar of Companies under the provisions of the Companies Act, 1956 .

2. Simplification in Procedures and Process under Companies Act, 1956

3. e-Payments in the Ministry:The payment of filing fee by the companies has been made completely online

4. adoption of International Financial Reporting Standards (IFRS)

5. Investor awareness programmes

6. The Companies Bill, 2012

7. Reorganisation of field offices.

8. Easy Exit Scheme, 2011

9. Setting up of Indian Institute of Corporate Affairs (IICA)

10. Limited Liability Partnership Act

11. National Company Law Tribunal (NCLT)

12. New Bills on Multi State Societies and Multi State Partnerships

13. Various orientation programmes for Directors throughCentres of Excellence, seminars and conferences topropagate propagate the need for following following good corporate corporategovernance practices are being organized.

14. Setting up of NFCG in partnership withstakeholders CII, ICAI, ICSI & FICCI.

15. Setting up of Investor Education and Protection Fund.

16. Amendments to the Acts governing three professional institutes(ICAI/ICSI/ICWAI) (ICAI/ICSI/ICWAI) with a view to strengthen strengthen the disciplinary disciplinarymechanism and bring transparency in their working.

17. Empowering SEBI under the SEBI Clause 49 for greater regulation and monitoring of companies

18. Mandatory corporate social responsibility (CSR) under the companies act 2013.


THE ULTIMATE AIM OF CORPORATE GOVERNANCE IS FOR A PROSPEROUS INDIA








BIBLIOGRAPHY
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1357290354602.pdf
http://psrcentre.org/images/extraimages/312018.pdf
Wikipedia
Voluntary Guidelines on Corporate Governance, The Ministry of Corporate Affairs, December 2009


By,
Vinay kumar thammi,