| Govt notifies Act to entrust Sebi with extra powers |
|
New Delhi, 28 August Giving more teeth to Securities and Exchange Board of India (Sebi) to clamp down on illicit money- pooling schemes and other frauds, the government has notified a new law empowering the capital market regulator to pass orders for attachment of properties, arrest of defaulters and to access call data records. The Securities Laws Amendment Act, which was cleared by Parliament earlier this month and amends all legislations governing capital markets, would also facilitate setting up of a special Sebi court to fast- track the investigation and prosecution process, including by granting approval for search and seizure operations in suspected cases of frauds. The Act, which has come into force through a gazette notification dated August 25, is part of the government and regulators efforts to tighten the noose around fraudsters in the wake of several cases of illicit moneypooling activities including by ponzi operators in various parts of the country. The new Act has as many as 57 clauses to amend various sections of the Sebi Act and two other related pieces of legislation. The Bill was passed by the Lok Sabha on August 6and in Rajya Sabha on August 12. The notification comes more than one year after the first ordinance was promulgated in July 2013 to grant these additional powers to Sebi. The ordinance was promulgated for the second time in September last year, followed by a third ordinance in January, as a bill could not be passed in Parliament at that time to grant permanent powers to Sebi. The third ordinance also lapsed late last month, leaving Sebi without these extra powers which were used by the regulator in nearly 1,500 cases during their validity period. The ordinance, which had 30 clauses, was brought in against the backdrop of lakhs of small investors being duped by numerous fraudulent investment schemes across the country, like in the alleged Saradha scam in West Bengal. With the new powers, Sebi can now act against all illegal money- pooling schemes involving ₹ 100 crore or more, launch recovery proceedings, pass disgorgement orders for ill- gotten money and facilitate its return to identifiable investors, among others. The market watchdog would have powers to seek call data records and other information from any person, company, bank, authority or organisation during its probes. Sebi would have powers to seek call data records and other information from any person, company, bank, authority or organisation during its probes |
| CSRproves that business is integral part of society |
|
It isrecognizedtheworldover that integrating social, environmental andethical responsibilities into thegovernanceof businesses ensures their long termsuccess, competitiveness and sustainability. This approach also reaffirms the view thatbusinesses areanintegral part of society, and have a criticalandactiverole toplay inthe sustenanceandimprovement of healthy ecosystems, in fostering social inclusivenessand equity, andin upholding theessentials of ethical practicesand good governance. This also makesbusinesssenseascompanieswith effectiveCSR, have image of socially responsible companies, achieve sustainable growth in their operations in the long run and their productsandservices are preferred by the customers. Indian entrepreneurs and business enterprises have a long tradition ofworkingwithin thevalues thathavedefinedour nations character for millennia. Indias ancient wisdom, which is still relevant today, inspires peopletoworkfor the larger objective of the well- being of all stakeholders. Thesesoundand all- encompassing values are even more relevant in current times, as organizations grapple with the challenges ofmodernday enterprise, the aspirations of stakeholdersandof citizens eager tobeactiveparticipants ineconomicgrowthand development. Oneof the most contemporarydefinitions isfromtheWorld Bank Group, stating, " Corporate social responsibility is the commitment of businesses to contribute to sustainable economic development by workingwith employees, their families, the local community and society at large, toimprovetheir lives in ways that are good for businessandfordevelopment Governmentof India hasrepeatedly emphasized on its mandate to make growth " Inclusive" and has incorporated the same principle not only in Government schemes and projects but also in policies meant for private sector and others. The Companies Act 2013isastep forward in that direction, with inclusion of section 135 CSR provision mandating private companies to spendaminimumof2% of their netprofitondevelopmental activities. A robust and thriving development sector is central to India's quest for equitable, inclusive and sustainable growth. India'sdevelopmentsectorhas evolved substantially over the last fewdecadesandisnowwitnessing unprecedented interestandinvestmentsacross the value chain. With the passageofthe Companies Act, 2013 the mandate for corporate social responsibility (CSR) has been formally introduced to the dashboard of the Boards of Indian companies. The industryhasresponded positively to the reformmeasureundertaken by the government with a wide interest across thepublic and private sector, Indian and multinational companies. The practice of CSR is not new to companies in India. However, what this Act does is bringmorecompanies into the fold. Also, it is likely that the totalCSRspends will increase. Every single major policy initiative in this country has been driven with a perspective that an overwhelming concern for the disadvantaged and marginalised, amultidimensional viewofpovertyandhumandeprivation, the focus on our fundamental rights and the need to expand opportunities while ensuring its equal distribution are fundamental for achieving strong human development. Butdisparity, inequalityandthe growing divide in our societies define ourexistence today. The inclusion of the CSR mandate undertheCompanies Act, 2013 is an attempt to supplement the government's effortsof equitably delivering the benefits of growth and to engage the Corporate World with the country's development agenda. India is a country ofmyriad contradictions. On the onehand, ithasgrowntobe oneof the largesteconomies in the world, and an increasingly important player in theemergingglobal order, on the other hand, it is still hometo the largestnumber of people living in absolute poverty ( even if the proportion of poor people has decreased) and the largest numberofundernourishedchildren. What emerges is a picture of uneven distribution of the benefits of growth which many believe, is the rootcause of social unrest. Companies too have been the target of those perturbed by this uneven development and as a result, their contributions to society are under severe scrutiny. With increasing awarenessof thisgapbetween the haves and the have- nots, this scrutiny will only increase over time and societal expectations willbeontherise. Many companieshavebeenquick to sense this development, and have responded proactively while others have done so only when pushed. This combination of regulatory as well as societal pressure has meant thatcompanieshaveto pursue their CSR activities more professionally. OneexampleofdevotedCSRis theGurukulVridhhaashram, aplacefor the less fortunate, who have no one to take care of them. They are either terminal, ormentally challenged, or too sick, totakecare of themselves, and have been abandoned by or separated from their nearones. There are about 150 residents there, mostly oldandall destitute. The ashram tries its best to give them awarmfeeling ofhuman touch and compassion. As Pearl S. Buck rightly said that our societymust make it right andpossible for old people not to fear the young or be desertedby them, for the test ofacivilization is theway that it cares for its helpless members. Globally, the notion of CSR andsustainabilityseemstobe converging, as is evident from the various definitions of CSR put forth by global organisations. The genesis of this convergencecanbeobservedfrom thepreamble to the recently released draft rules relating to the CSR clause within the Companies Act, 2013 which talks about stakeholders and integrating it with the social, environmental and economic objectives, all of which constitute the idea of a triple bottom line approach. India'sdevelopmentsector hasevolvedsubstantially overthelastfewdecades andisnowwitnessing unprecedentedinterestand investmentsacrossthe valuechain Indianentrepreneursandbusinessenterpriseshavealongtraditionofworkingwithinthe valuesthathavedefinedournationscharacterformillennia Thinkstock |
|
--
Company Secretary
Chennai
93810 11200
__._,_.___
No comments:
Post a Comment