Update
BL
The latest US ruling on
insider trading will also affect Indian regulators’ ability to prove
allegations »
<<<
itatonline
The following important judgement is available for
download at
itatonline.org.
ITAT laments severe fall in standards of CA
profession. Advices ICAI to take disciplinary proceedings
against erring members & tackle issue on war footing
Gen. >
< “Lawyers are the only persons in whom ignorance of the law is
not punished”.
– Jeremy Bentham
5.2 Separating Professional Education from Self-Regulatory Authorities
One of
its major recommendations is that professional
education should be taken away from the
domain of the existing Regulatory Bodies. The
NKC has observed that,...
The
other regulators, say in the sphere of professional education, are
often inconsistent in their adherence to
principles.
....
www.indianexpress.com/news/ca-institute-may-be-split/568422/
18 Jan 2010 – The idea that the education part
is kept apart from regulation, I think it
is ... ICAI president Uttam
Prakash Agarwal, however, said, “What is the purpose of two
bodies? ... Commission had
suggested separation of academic and regulatory ... Theregulatory function and acedemic function can be separated just ...
...>
TG
< To or Not to
Multipurpose Empanelment for the year 2014-15 for bank audits
BS
July 4
www.thehindubusinessline.com/markets/...sebi/article6174277.ece?...
7 hours ago - Capital market regulator SEBI may have to settle for reduced authority following protests against it being given search and ... Lessons for SEBI
As has
been often criticized in knowledgeable circles, there have been
instances in the past, within living memory, in which the SEBI, has ,
unwittingly or otherwise, out strtched /over stepped its assigned powers
as a mere regulatory authority by choosing to follow patently
misconceived ideas of its own, recklessly, thereby exceeding its brief.
One of the irritants has been its sporadic resort to rules- /- decision
making, without much of a home work as warranted in the wholesome
interests of the national economy.
There is
no gainsaying that the utmost need, nay opportune time, for monitoring
and regulating the functions of SEBI, so also of the other like
regulatory or semi regulatory authorities, has come to surface in a big
way.
Raghuram Rajan is right in raising doubts about the need for a super-regulator in the financial sector
A week ago, Governor Raghuram Rajan delivered a speech in Mumbai, the theme of which was the Fina...
»
At a broader level, we need a policy that pushes for a level playing field in all sectors.
India’s elections have just demonstrated the benefits of effective and efficient competition.
»
Prev.
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Terms FSLRC's proposals on size and scope of regulators schizophrenic
|
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......
<He cautioned that we should not be trying to
solve a problem that does not exist. “As the Chinese would say, let us
recognise the value of crossing the river by feeling each stone before
we put our weight on it.
Let us not take a blind jump hoping that a stone will be there to
support us when we land. Or in American, if it ain’t broke, don’t fix
it!”>
Prev.
ICL
Report on Governance of Banks
It
is in this background that one needs to view the recommendations of a
committee under the chairmanship of Mr. P.J. Nayak that was tasked by
the Reserve Bank of India (RBI) to review the governance of bank boards
in India. The committee issued its report earlier
this month. The report identifies the ills that afflict the current
system of governance in India’s banking sector and seeks to make
suggestions for overhaul of the system, many of which are quite radical
in nature. Overall, the report is quite detailed and well-researched,
and is the result of a meticulous study that is supported by extensive
data collection.
Prev
Supreme Court on the Sanctity of a Takeover Offer
...
"From a takeover structuring
perspective, however, it considerably enhances the risk to the offeror. (?) Hence,
the offeror must be committed to the offer, and must be convinced as to the
commercial viability of the offer and be prepared to accept the risk of intervening
events, changes in business, in the economic environment and other factors,
unless they are elevated to the extent recognised in Reg. 27 of the Takeover
Regulations (and Reg. 23 of the present version of the Takeover Regulations of
2011). This imposes a significant onus on offerors. At is does not matter
whether the offer is voluntary or mandatory – both stand on the same footing.
It is not as if the voluntary nature
of the offer will provide any leeway to the offer. Once the offer is made, the
offeror effectively reaches a point of no return." ...
" While the delay on the part of SEBI
was not permitted to be used by the offeror in this case as an excuse to
withdraw the offer, the Supreme Court’s observations on delays in the
regulatory oversight of takeovers are relevant and seem to make a larger point: ...."
On the first
blush, in one's perspective, the opposing stance taken by the disputants, so
also the ruling of the SC are most likely, or regarded worthwhile, to be reconsidered; do so, having regard to a very well established rule /legal principle underlying the
whole episode.
To be precise, a couple of rudimentary points that call for an
upright objective view are these: -
1. Does not
any offer , unless and until accepted, continue to remain so; so that it is
open and within the right of the offeror to rescind / withdraw it unilaterally before
acted upon. accepted?
2. Should
not the stated age-old rule/ principle
of contract law be considered applicable to any transaction, regardless of
whether or not that happens to be a transaction to which any other regulation,
even having a statutory force, of a later origin applies ?
Over to the
law experts for a serious deliberation if the points raised deserve it, to the
end of a righteous resolution.
Should not , in any view, even granting but not necessarily conceding that there is a sanctity to be attached, the inordinate delay on the part of SEBI in clearing the proposal constitute a strong ground for a contrary opinion, favorable to the offer-or?
Tail Note:
1.In short, the intriguingly nagging poser that needs to be addressed is this: - Is the referred basic rule of contract law , whatever be the compulsions, particularly economic considerations of such a peculiar nature, amenable to so being subjected to a rewriting or overwriting; which is tantamount to doing violence to the very foundation of the concept of 'contract'?
2. (a) A query or doubt of a queer complexion that surfaces for consideration, from a taxation angle:
On the given facts and circumstances, will the offeror be entitled to claim as tax deductible (on revenue account) any loss eventually arising out of / in consequence of it being obligated to go ahead with the transaction (s), under compulsion of court verdict?
(b) Besides, on the grounds/strength of the strong strictures passed by the court against SEBI for the inordinate delay in clearing the proposal, will not the sufferer-company have a cause of action (civil and or criminal) to proceed against its concerned officers, being public servants, for having failed in the due performance of their duties, and on a timely basis ?
TOI
Authority to fight bank failures?
Offhand
In one's quick but firm view, there seems to be a strikingly agonizing fallacy, verging on lunacy, in
the very idea for having in place a
'resolution' authority, that too at this late stage. One would have thought in
today' s already extremely muddled scenario, any talk of 'co-ordination',
ideally on an ongoing basis, as aimed at, is palpably a wishful/blinkered thinking,
rather a non-starter. If were to be
guided by common sense, with a good measure of wisdom historically gathered
only in hindsight, 'prevention' (in
anticipation of a crisis such as this) is any day better than devising a 'cure'
(remedy). In other words, wisdom lies in sincerely and intelligently foreseeing
and planning how to cross a river on the route, a turbulent one at that, even
before the late stage of having arrived at its threatening banks.
a quixot(ind)
Offhand
Authority to 'fight' is a patently misconceived idea, to fit in and
expected to work any 'wonder'. The current scenario is the worst one
can visualize; hence the need of the hour is a full fledged high powered
'regulator' and a sincere intensified exercise to redeem/salvage the
situation, on the brink of otherwise inevitable disaster.
<
Any
such so-oft repeated pointer to NPAs, that has been growing in leaps
and bounds in recent years, forcibly brings to one's mind / sharp focus
the (in)valuable/negative contribution determinedly made by the
notorious sector- 'realty' , widely admitted as a highly disorganized
and uncontrolled culprit primarily responsible for the current scenario.
It is no longer a hidden secret that, besides the management of the
suffered or victimized banks, the blame has to be undeniably shared in
equal measure by the concerned rest- besides the property registrars,
notably, the advising professionals , overwhelmingly commercialized, as
they have chosen to remain (Lawyers, CAs (operating /functioning ,
equipped or not, in a dual /mutually conflicting capacity) , et al).
Last but not least, the blame lies on the stakeholders as well, thanks
to their blissful ignorance, imp(r !)udence, or whatever it really is. 
ICL
BL
The quality of mercy
