Update
BL
<<<
itatonline
Gen. >
Elements for an Effective Regulator | www ...
TG
< To or Not to
Multipurpose Empanelment for the year 2014-15 for bank audits
BS
July 4
Government may take the sting out of SEBI | Business Line
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.
Prev.
......
<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." ...
TOI
Authority to fight bank failures?
a quixot(ind)
ICL
BL
The quality of mercy
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.
Vijay V Meghani vs. DCIT (ITAT Mumbai)
ITAT laments severe fall in standards of CA
profession. Advices ICAI to take disciplinary proceedings
against erring members & tackle issue on war footing
Gen. >
Elements for an Effective Regulator | www ...
< “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 ...
...>
5.2 Separating Professional Education from Self-Regulatory Authorities
NKC has observed that,...
TG
< To or Not to
Multipurpose Empanelment for the year 2014-15 for bank audits
BS
July 4
Government may take the sting out of SEBI | Business Line
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 SEBIAs 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.
ASHOAK UPADHYAY
One regulator too many?
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...
»
Udai S Mehta
A competition law alone is not enough
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.
 |
|
......
<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: -
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 ?
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.
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.
<
a quixot (ind) replies to MURLI V IYER 22 mins ago
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
XXXXXX....
PRADEEP S MEHTA
PRADEEP S MEHTA
The
terms of appointment vary from one sectoral regulator to another. Now, there’s
a Bill that takes such issues head-on »
<> Let’s regulate the regulators
'Y'
<> Let’s regulate the regulators
"Although, the Bill has been JUDICIOUSLY drafted, it
fails to adequately provide for some of the goals it sets to achieve. For
instance, independence and accountability have been clearly enlisted as
important factors, but the mechanism to achieve these is vague."
This one selected potion is enough to proclaim 'enough is
enough !'. To be precise, almost each one of the words used ,- e.g.
'judiciously ', 'fails to adequately', 'mechanism.. vague', - strikingly bear
out a mutually self-effacing contradiction; so much so, as to provoke one to
turn skywards and exclaim loudly, in agony, - why should there be so much of
deterioration in the quality of journalism in general, and of such write-ups in
particular, as to be devoutly or seriously regarded to make for a useful or
purposeful reading by the subscribers community at large, left with a hapless
and helpless feeling of remorse every morning. Any counter –view?
Now, turning to the merits or purposefulness, remote or
otherwise, of the very such policy (ies) lately mooted and being vigorously
pursued , the latest News from across the borders is observed to provide a lead
clue or sincere guidance to any government , not to talk of an analyst >
U.S. regulators failed to spot deadly GM defects that others saw
Mailed to >
Must , in one’s perspective, make for an undelightful nauseating
read to anyone who is really concerned, and devoutly minding to follow own line
of thoughts, incisively considered as anyway
preferred to be with a different but better stroke ?!
'Y'
U.S. regulators failed to spot deadly GM defects that others saw
BL
Co,Sec. >
<previous
ADD-ON
REALiTIES O(F)! REAL(?)TY >>>>>>>>>.............
< googling (A PASSION!) >>>....
SPECIFICS
Blackmailers using RTI Act to blackmail builders - TaxGuru
Malpractices in Realty Sector - Press Information Bureau English ...
· Housing loan scam: developers may be forced to turn to pvt ...
www.indianexpress.com/.../housing-loan-scam-developers...moneylende...
Nov 29, 2010 - The recent housing loan scam would increase developers' dependence on private money-lenders. While cash flow from various quarters like ...
· Post housing loan scam -developers' dependence on private money ...
taxguru.in/.../post-housing-loan-scam-developers’-dependence-...
Dec 1, 2010 - The recent housing loan scam would increase developers' dependence on private money-lenders. While cash flow from various quarters like ...
Bribes-for-loans scam- Banks to tighten norms for sanction of loan to ...
Taxguru
Banks to secure realty loans with escrow a/cs - Economic Times
Loan scam: 11 real estate companies under our scanner, says CCI ...
articles.economic
GENERALS (Collections)
Reactions (inspired by the ‘commondreams’ @)>
The idea of 'gift' -ing' may not after all be a bad one; provided it is done fully conscious but not bothering or entertaining any anxiety over the tax consequences it might entail. But, of course, one may have an escape route; in that, the men -in governance/ - in charge of 'legislation, have, in their wisdom or lack of it, chosen to leave enough loopholes, et al, (for clues look up the material on websites) , charitably for the benefit of those taxpayers and their learned cum shrewd professional advisers who are all the time striving to look for and locate any loophole or other deficiencies, of advantage galore, in the serious business of the framing of tax laws; choosing not to take on for the common good, and continue to live in sin in times to come.
If to be differently viewed : Subject to, or additionally, is not the alternate but seemingly righteous idea a much better one. That is, - of earnestly trying to stop acquiring any longer, more and more assets, thereby inviting more and more problems afflicting own peaceful living; in the result, help slowing down the observed increasing tendency to leaning towards the woeful 'capitalism', which is bound to have deleterious impact on the long-ignored / eschewed ideal of "societal welfare" ?????>>>>
Calls for a devoted introspection at least by those, however in minority they are, simply for a change; especially, one for the better.
@ Click here to view this and past Newsletters online.
(left unedited- for the others so minding to do so!)
BS
BL
Sept 29
Suspended stocks, 1,200 and counting
Around Rs 2,500 crore of shareholder funds is locked up»
(2006) 6 CAT 565
(2006) 7 CAT 64
BL
'Y'
Reactions (inspired by the ‘commondreams’ @)>
The idea of 'gift' -ing' may not after all be a bad one; provided it is done fully conscious but not bothering or entertaining any anxiety over the tax consequences it might entail. But, of course, one may have an escape route; in that, the men -in governance/ - in charge of 'legislation, have, in their wisdom or lack of it, chosen to leave enough loopholes, et al, (for clues look up the material on websites) , charitably for the benefit of those taxpayers and their learned cum shrewd professional advisers who are all the time striving to look for and locate any loophole or other deficiencies, of advantage galore, in the serious business of the framing of tax laws; choosing not to take on for the common good, and continue to live in sin in times to come.
If to be differently viewed : Subject to, or additionally, is not the alternate but seemingly righteous idea a much better one. That is, - of earnestly trying to stop acquiring any longer, more and more assets, thereby inviting more and more problems afflicting own peaceful living; in the result, help slowing down the observed increasing tendency to leaning towards the woeful 'capitalism', which is bound to have deleterious impact on the long-ignored / eschewed ideal of "societal welfare" ?????>>>>
Calls for a devoted introspection at least by those, however in minority they are, simply for a change; especially, one for the better.
@ Click here to view this and past Newsletters online.
(left unedited- for the others so minding to do so!)
BS
Bending over backwards |
New index should not perpetuate backwardness
|
BL
Sept 29
Suspended stocks, 1,200 and counting
Around Rs 2,500 crore of shareholder funds is locked up»2,800 companies vanish from bourses in last ten years
"....But not taking action against the company may adversely affect the interest of new investors who may invest in the shares of these companies,"
Few Sporadic Well-meaning Thoughts:
Yes, may be, action is called for; but the imponderable is , -why the authorities, in their wisdom or lack of it, think that 'suspension' is the one and only action possible, with no other better action to keep the interests of the extant shareholders intact and at the same time to coerce and deter the erring companies to mend their ways ! The real worry or concern, one should think, if genuine, must be for the extant investors not the prospective ones.
In this context, one cannot resist the temptation to recall another instance when the principles of equity and natural justice came to be grossly violated by SEBI under the guise of regulatory measure. The reference is to the disastrous consequences that ensued in the aftermath of SEBI, not before long, assuming imaginary powers, unwittingly froze lakhs of DEMAT accounts, presumably including many genuine accounts, on the ground of non-compliance with the patently ill-conceived but nonetheless 'mandated' ubiquitous PAN requirement.
If interested, one may care to read and consider the merits or otherwise of the viewpoints set out in a couple of published articles.
HERE (Taxmann journals)>(2006) 6 CAT 565
(2006) 7 CAT 64
BL
Sept 27
COMPANIES
From now, CFOs have to mandatorily attest financial statementsChief Financial Officers will henceforth have to attest the financial statements of companies. This norm is specified in the new company law, which also gives statutory re... »
T. B. KAPALI
Currency options are a must
Rupee volatility has scarred exporters and importers. Small and medium-size firms must hedge their currency risk. »VANITHA SRINIVASAN
We’re reluctant rationalists
Will we ever get superstitions out of our
Cross Refer >
2. http://vswaminathan-vswaminathan-swamilook.blogspot.in/2011/12/auditors-independence-and-good.html?view=sidebar
3. http://vswaminathan-vswaminathan-swamilook.blogspot.in/2011/08/investors-awareness-govts-action.html?view=sidebar
4. http://vswaminathan-vswaminathan-swamilook.blogspot.in/2011/07/is-accounting-clerical-unwarranted.html?view=sidebar
5. http://vswaminathan-vswaminathan-swamilook.blogspot.in/2011/07/law-and-its-makers.html?view=sidebar
3. http://vswaminathan-vswaminathan-swamilook.blogspot.in/2011/08/investors-awareness-govts-action.html?view=sidebar
4. http://vswaminathan-vswaminathan-swamilook.blogspot.in/2011/07/is-accounting-clerical-unwarranted.html?view=sidebar
5. http://vswaminathan-vswaminathan-swamilook.blogspot.in/2011/07/law-and-its-makers.html?view=sidebar
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