Entries Tagged 'general' ↓

SCORES – SEBI’s new initiative to track complaints

SEBI’s latest initiative to live is SCORES‘ (SEBI COmplaint REdress System) to track shareholder grievances against listed companies and SEBI registered intermediaries.

SEBI intends this system to be a second level of redressal system, the first being the company / intermediary itself.

An investor needs to register with a valid email id on this website, and then can complaint against any listed company or SEBI registered intermediary, like brokers, depositories / depository participants, mutual funds, merchant bankers, etc.

The website also allows a complainant to upload pdf documents (up to 1MB size) as supporting documents.

The website also has separate sections for sending reminders and checking the status of a complaint.

This, if used, should herald a new era of investor governance and ensure listed companies and intermediaries take investor complaints more seriously.

Flashback – 2010 … the year that flew by

2010 was an eventful year in more ways than one. Corporate performance is now seen in all hues. From a spectacular growth in the stock market and amazingly good / bad primary market listings to corporate frauds and press manipulation we have seen it all in the past twelve months.

Amidst all this chaos corporates are out there either raising money or attempting to raise valuations. How do they (corporates) gauge (a) investor interest and (b) investor confidence in their company? How many corporates have an effective investor relations strategy? Does anyone have and follow a code of conduct for corporate governance? and numerous other such questions.

To me this clutter and chaos should force corporates to pursue an active investor relations strategy and corporate governance code of conduct. However what should any management which does not intend to raise money or is not enthused by higher valuations do? Should they have an active investor relations strategy or a passive one will suffice? I believe that management’s of listed entities have the fiduciary responsibility towards its shareholders, especially minority shareholders. It is these shareholders’ who had faith and have invested in the company. This makes it their right to know and stay informed about the company on an ongoing basis. The other side of the coin is that it is the managements’ duty to continually let its investors know about the events at the company.

Changes – The old paves way for the New

This is a new post in a long long time. Be rest assured that I shall now be regular in updating this blog and it shall indeed be alive once again.
During this result season – Q2 FY11 (Jun-Sep 2010) – I shall not analyse the financial results of comapanies. Here I intend analyse the management’s reporting and corporate governance standards. What I shall also attempt doing is to highlight – without prejudice to the management – how the results releases from investors and analysts point of view could have been more meaningful. Do note that I shall not have access to any more or less information than analysts, and hence I indeed would be biased to that extent.
I shall, thus, focus more on investor relations and corporate governance related facets and issues; and from time to time also give my take and analysis on the various economic parameters.
Do send me feedback if I should also be covering some other critical aspects.
I will look forward to your bouquets and brickbats.

Changes – The old paves way for the New

This is a new post in a long long time. Be rest assured that I shall now be regular in updating this blog and it shall indeed be alive once again.
During this result season – Q2 FY11 (Jun-Sep 2010) – I shall not analyse the financial results of companies. Here I intend analyse the management’s reporting and corporate governance standards. What I shall also attempt doing is to highlight – without prejudice to the management – how the results releases from investors and analysts point of view could have been more meaningful. Do note that I shall not have access to any more or less information than analysts, and hence I indeed would be biased to that extent.
I shall, thus, focus more on investor relations and corporate governance related facets and issues; and from time to time also give my take and analysis on the various economic parameters.
Do send me feedback if I should also be covering some other critical aspects.
I will look forward to your bouquets and brickbats.

CPE made recommendatory to members of the ICAI who are not in practice

The Central Council of the Institute of Chartered Accountants of India (ICAI), has decided to make the Continuing Professional Education (CPE) recommendatory to the Institute’s members who are not in practice with effect from 1st January 2006. Such members who are not in practice are required to earn 10 (Ten) hours of CPE Credit for the calendar year 2006.

Recognised Provident Funds Allowed to Invest in Equities & Mutual Funds

The CBDT has amended the Income Tax Rules vide Notification No 220/2005 dated 3rd November, 2005. This amendment allows Recognised Provident Funds to invest in equities & other securities.

Rule 67 of the Income Tax Rules, 1962, governs the investment avenues available to a Recognised Provident Fund.

Minimum Investment to be made as under:

Investment Avenue Min Invt Moneys received on maturity of investment made before 1st April, 2005 [as reduced by obligatory outgoings] can be invested as under:
  1. Central government securities, or
  2. Mutual funds dedicated to investment in government securities#
25%
  • The total portfolio of central & state government securities [sr no’s 1 & 3] can be divided into tradable & non-tradable categories
  • A maximum of 10% of the total government securities at the end of the preceding financial year can be treated as tradable & used for active management
  • The tradable portion as determined above & the investments made in mutual funds [sr no’s 2 & 4] should be marked-to-market at the end of the financial year
  • The investment in any single mutual fund cannot exceed 5% of the total fund value at any point of time
  1. State government securities, or
  2. Mutual funds dedicated to investment in government securities#, or
  3. Other negotiable securities guaranteed by either the central government or any state government
15%
  1. Bonds / securities of public financial institutions / public sector company / public sector bank, or
  2. Term Deposit Receipts of up to three years issued by a public sector bank, or
  3. Collateral Borrowing & Lending Obligation issued by the Clearing Corporation of India Ltd
30%
  • Under this head, up to 5% of the investment can be made in the equity shares of any company*
  1. Any of the Above
30%
  • Under this head, up to 10% of the total fund can be invested in either debt instruments of any company* or in equity linked schemes of any mutual fund#

*: Investment in companies with an investment grade debt rating from at least two credit rating agencies eligible

#: Investment in mutual fund regulated by SEBI eligible

In case the investment ratings of any of the investments falls, then the option to exit from such investment should be exercised, and the funds released should be invested as above.

Investments made on or after 1st April, 2005 but before the issue of this notification [based on the earlier notification] shall be deemed to have been made in the manner as specified herein.

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