SEBI Punished Ex Compliance Officer of erstwhile Satyam Computers for avoiding duty under Insider Trading Regulations

SEBI Punished Ex Compliance Officer of erstwhile Satyam Computers for avoiding duty under Insider Trading Regulations

The SEBI has imposed Rs 5 lakh fine on the erstwhile Satyam Computer's compliance officerMr. G Jayaraman for failing in his duty to avoid insider trading in the company's shares in December 2008 - days before a major corporate scam broke out at the IT firm.

Jayaraman's role came to the light during market regulator SEBI's investigations into the Satyam scam, which came to light during the financial year 2008-09, SEBI said in an order dated July 27, which was made public recently.

The investigation revealed that Satyam's then Chairman Ramalinga Raju had proposed on December 06, 2008 the acquisition of Maytas Infra and Maytas Properties (two companies promoted by Raju's family) by the IT firm.

The announcement for these acquisitions were made public on December 16, 2008, and the plans were subsequently dropped next day on December 17, 2008, followed by a confession by Raju on January 7, 2009 about large-scale irregularities at the company.

SEBI said its probe found that the trading window for Satyam shares was closed for insider trading from December 17, 2008 till beyond January 9, 2009, although Jayaraman, as compliance officer of the company, was required to close the trading window much earlier on December 6.

Satyam's announcement on December 16, 2008 (evening) to acquire Maytas Infra and Maytas Properties resulted in a substantial fall in Satyam share price on December 17, 2008 when the scrip fell by over 33 per cent, and recovered marginally after cancellation of the decision.

SEBI investigation alleged that Jayaraman "violated the provisions of the 'Model Code of Conduct for Prevention of Insider Trading for Listed Companies' ... by not closing the trading window when unpublished price sensitive information about the acquisition...came into existence."

After a thorough probe, SEBI had imposed a penalty of Rs 5 lakh on Jayaraman on November 29, 2011, but this order was challenged at Securities Appellate Tribunal (SAT), which remanded the matter for a fresh probe by the regulator.

SEBI again issued fresh show-cause notices and gave Jayraman to present his case again in the matter.

Jayaraman contended that "time for commencement of closing the trading window and company's decisions are taken by the Board of Directors" and there was no such direction from the board to him to close the trading window on December 6, 2008.

He said he was not aware of the matters sought to be discussed or transacted at the board meeting by the then chairman until December 15, 2008.

"A compliance officer is obliged to discharge the responsibilities under overall supervision of board of directors. Taking a decision unilaterally on such important matter could amount to undermining the authority of board," SEBI quoted Jayaraman having contended before it.

Jayaraman also said closure of trading window without direction or in-principle approval would have led to speculative trading by innocent investors, and he "was not involved in the deliberations and decisions by Ramalinga Raju, the then chairman and, therefore, he could not have speculated on when to close the trading window."

The Satyam official further said he was not aware of material details of the said proposal on December 6, 2008 and it was speculative till December 15, 2008.

SEBI probe, however, found that Raju had also called Jayaraman, along with few other senior executives, to his house on December 6, 2008, where he talked about the proposed deal and said he would apprise the board about the same.

"An analysis of the events on December 06, 2008 mentioned above reveals that the said acquisition proposal was not one which could be viewed as premature or improbable.

"It was well known that all the three companies involved in the said acquisition proposal...were controlled by the same family, that is family of B Ramalinga Raju. The proposal regarding the acquisition was made by none other than B Ramalinga Raju himself who was the chairman of SCSL (Satyam Computer Services Ltd) at that time," SEBI said.

In addition, Raju's instruction to "all those who met him at his residence to keep the matter confidential till the board meeting on December 16, 2008 leave no doubt whatsoever that it was a significant proposal and...had vast financial and other implications," SEBI said.

"The publication of such proposal would definitely have materially impacted the price of the scrip," it added.

SEBI further said the Compliance officer is responsible to take all steps to ensure that any insider trading based on Unpublished Price Sensitive Information be prohibited.

Even though the compliance officer is to execute his responsibilities under the overall supervision of the Board, yet the key responsibilities conferred on the compliance officer cannot be overlooked.

For orderly and fair functioning of the securities market, it is essential for every market player to fulfill the requirements mandated in law. The duty weighs even more on a person like compliance officer, who is conferred upon with key responsibilities in a company.  

CCI CONSTITUTE​S AN EMINENT PERSONS ADVISORY GROUP (EPAG)

The Competition Commission of India (CCI) has constituted an Eminent Persons Advisory Group (EPAG). This will serve as a group of ‘wise persons’ to give broad inputs and advice on larger issues impacting markets and competition, good international practices, improved advocacy etc. to the Commission. EPAG will have interaction/meetings with the Commission two to three times in a year. The group has been constituted in a manner that CCI could benefit from the advice of eminent persons representing a wide arena from the Corporate Sector, Academics, NGOs, Regulatory Authorities, Reserve Bank of India, CAG etc. The following eminent persons have consented to be Member of the EPAG:
1. Shri N.R. Narayana Murthy- Former Chairman, Infosys
2. Shri V.N. Kaul- Former CAG
3. Dr. Rakesh Mohan- Ex Dy. Governor, RBI
4. Ms Kiran Mazumdar Shaw – CMD, Biocon
5. Dr. Bakul H. Dholakia- Former Director, IIM Ahmadabad
6. Dr. S.L. Rao – Ex chairman, CERC and Ex-Director General, National council of Applied Economic Research
7. Shri N.L. Mitra- Former Vice-Chancellor, NLSIU, Bangalore
8. Ms Rohini Nilekani – NGO activist, Bangalore
First meeting of the Group is tentatively planned in July, 2012. --

Dangerous phthalates - New Norms in European Union

The situation is equally holding same position in India and we do not have any corresponding law for the use and limit of phthalates . The most common use is primary packing material of food articles which we use frequently without knowing. Surprisingly our new law Food Safety Standards Act is also silent. 

On March 5, 2012 the European Chemicals Agency (ECHA) announced the most commonly found "substances of very high concern" (SVHCs) in goods that are commonly bought by EU consumers. SVHCs are substances deemed to be dangerous and are found on a list – known in Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) parlance as the Candidate List.

Dangerous phthalates

Several obligations flow from the use of SVHCs in goods (articles) which are placed on the EU market. The ECHA's announcement demonstrates that of all dangerous substances, four phthalates are the most commonly used and therefore present in goods. The four phthalates, added to the Candidate List due to their toxicity to reproduction, have been named as bis(2-ethylexyl) phthalate (DEHP), benzyl butyl phthalate (BBP), dibutyl phthalate (DBP) and diisobutyl phthalate (DIBP).

These phthalates are commonly found in, among others, batteries and accumulators, fabrics, textiles and apparel, machinery, mechanical appliances and electrical/electronic products, as well as in different types of plastic, rubber and wood products.

DEHP is found, for example, in accessories such as cables, adapters, storage media, picture frames, computer mice, keyboards and headsets, as well as in accessories stitched onto textiles (eg, buttons, reflectors, fasteners and labels). It is also found in wallets, umbrellas and car mats, among a long list of other products. DBP is found in several of the above products, as well as shoes with plastic parts, bags, belts and household goods such as lamps and microwave dishes. DIBP is also found in outdoor seating furniture and wire insulation in electrical products. Finally, BBP is found in, among others, plastic blister packaging, plastic foil, power cords of electrical appliances and PVC packaging material.

The second most common notification is for hexabromocyclododecane (HBCDD), a brominated flame retardant deemed to be persistent, bioaccumulative and toxic. The substance is commonly found in products used in the construction and building sectors, such as plastic panels for the thermal insulation of buildings. Companies have also notified its use in polystyrene foam used for packaging and in the plastic housing of electronic appliances.

Registration and notification obligations

The list of SVHCs published by the ECHA is said to be the first of its kind, and is based on information provided by companies to the ECHA in notification and registration dossiers. EU producers and importers of foreign goods must register any chemical substances contained in their goods if certain conditions are met. They must also notify any SVHCs in their products if certain conditions are met.

Both the phthalates and HBCDD have been added to the European Union's so-called 'Authorisation List' (Annex XIV of the REACH Regulation). They are being phased out from use in the European Union. European companies that wish to continue using them for applications where there are no alternatives must apply for specific authorisations or the substances will eventually be banned: the four phthalates from February 21 2015 and HBCDD from August 21 2015.

The ECHA has highlighted a concern that products containing SVHCs, particularly imports into the European Union, may not be notified as required. It has stated that it is providing the information on SVHCs in order to enhance knowledge of the use and presence of hazardous substances in consumer products. However, the initiative is also intended to remind producers and importers of their legal obligations, under certain conditions, to notify the ECHA when their products contain substances on the Candidate List.

From April to December 2011, the ECHA received only 203 notifications. According to the ECHA, this is a new obligation for producers and importers, which may yet be unaware of their responsibility to notify. Consequently, the information does not provide a full picture of substances of very high concern in products on the EU market. Companies are thus encouraged to check whether they have implemented their legal obligations in this regard.

In December 2011, 20 new SVHCs were added to the Candidate List. Therefore, companies should be aware that the deadline to notify the ECHA of the presence in products of any such SVHCs is June 2012.

The ECHA has also taken the opportunity of its March 5, 2012 announcement to remind EU consumers that they have the right to know when substances on the Candidate List are present in products that they want to buy. Any consumer has the right to ask the supplier (including retailers) this question, and to receive an answer within 45 days.

FIRMS MAY SHIFT TO DTAA COUNTRIES

Finance Minister Pranab Mukherjee’s amendments to the Finance Bill 2012-13, have ensured companies operating their businesses through countries with which India has double taxation avoidance agreements (DTAAs) would continue to enjoy a liberal capital gains tax framework for at least another year without much difficulty. 

However, once the General Anti Avoidance Rule (GAAR) is implemented, these would be subject to tax provisions in India. While moving the amendments to the Bill, Mukherjee announced the GAAR would be applicable from April 1, 2013, and clarificatory amendments proposed in the Bill would not over-ride the DTAA provisions. 

Tax experts said as a result of the amendments, companies operating from countries with which India didn’t have DTAAs, would try to shift to countries with which India had such agreements, including Mauritius. “If the GAAR doesn’t come for one year, the old Mauritius circular is not withdrawn, and the Supreme Court ruling in Azadi Bachao matter is available to taxpayers, investment through Mauritius would continue to enjoy treaty benefits,” said Rahul Garg, executive director, Pricewaterhouse Coopers. “And, the situation that existed earlier would continue to be available, in respect of the investment from other treaty countries,” he added. 

The finance minister had said the provision in the Finance Bill which sought to retrospectively clarify the provisions of the Income Tax Act relating to capital gains on the sale of assets located in India through indirect transfers abroad, had been intensely debated, both in the country, as well as abroad. “I would like to confirm clarificatory amendments do not override the provisions of the double taxation avoidance agreements India has with 82 countries. It would impact those cases in which transactions have been routed through low-tax or no-tax countries, with which India does not have a DTAA,” he said. Since the implementation of the GAAR has been postponed by a year, during this period, companies operating from regions India has DTAAs with would continue to enjoy low or no capital gains tax, as applicable in the country. – http://www.business-standard.com/

FOREIGN BANK ARMS MAY GET TAX RELIEF

In an effort to encourage foreign banks to incorporate in the country, finance minister Pranab Mukherjee on Monday proposed to limit tax liability when they convert from branches into subsidiaries.  The Reserve Bank of India is in the process of formulating a scheme for local incorporation of Indian branches of foreign banks to ring fence local depositors from external shocks. Existing laws require overseas lenders to pay up to 30% of the market value of their assets as capital gains and stamp duty while converting branches to a new entity.  To support this effort, I propose to provide tax neutrality for such incorporation, said Mukherjee in the Parliament on Monday. The RBI, on the behest of the banks in December 2011, had sought a one-off tax exemption from the government for foreign banks that convert to local subsidiaries.  But foreign bankers are still skeptical of the proposed tax neutrality and are awaiting clarity on the matter. They are also awaiting clarity on national treatment and priority sector norms in the final guidelines. This was an impediment and tax neutrality would act as an enabling provision. Now, the path is open for RBI to set its guidelines, said Bobby Parikh, chief mentor at BMR Advisory. The RBI will maintain some level of conservatism from a security and stability point of view. It will have to give banks some length of time to achieve the desired priority targets and other norms, said Parikh. This is a positive step towards making incorporation favourable for foreign banks, said Sanjiv Bhasin, CEO of DBS Bank, India. On an average, the central bank issues about 14 branches to all foreign banks every year. – www.economictimes.indiatimes.com

inspection and Certification System

Inspection and Certification System The Government approved a scheme for a uniform inspection and maintenance system during the 11th Five Year Plan by setting-up of model Automated Inspection & Certification Centres one each in ten states namely Andhra Pradesh, Karnataka, Gujarat, Maharashtra, Rajasthan, Himachal Pradesh, Haryana, Madhya Pradesh, Uttar Pradesh and National Capital Territory of Delhi on a pilot basis. The Government also intends to put in place a nominated National Audit Agency so that the established Centres may be audited periodically.  Under the scheme of inspection and maintenance system, one model Automated Inspection And Certification Centre would be established in each states on a pilot basis. The state will further replicate such center based on motor vehicle population with the Under section 56 of the Motor Vehicles Act, 1988 State Governments are empowered to authorize private or public garages as testing stations for the purpose of granting certificate of fitness to transport vehicles.

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Measures for Unfit Vehicles

Measures for Unfit Vehicles Certificate of fitness from the prescribed authority is a condition precedent for renewal of registration of a motor vehicle, other than a transport vehicle, under Rule 52(2) of Central Motor Vehicles Rules, 1989. With regard to transport vehicles, Section 56 of the Motor Vehicles Act, 1988 provides that subject to the provisions of Sections 59 and 60 of the said Act, a transport vehicle shall not be deemed to be validly registered for the purposes of Section 39, unless it carries a certificate of fitness in the prescribed form issued by the prescribed authority or by an authorized testing station to the effect that the vehicle complies for the time being with all the requirements of this Act and rules made there under. Enforcement of provisions of Motor Vehicles Act, 1988 and Central Motor Vehicles Rules, 1989 comes within the purview of State Governments/UT Administrations.

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Representation of Women

Representation of Women

The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that the Government is considering to make it mandatory to have at least one woman director in the Board of Directors. 

Replying to a written question the minister said Clause 149 of the Companies Bill 2011 provides that such class or classes of companies to be notified from time to time shall have at least one woman director. 

Replying to another question whether it is also true that the Government is considering to increase the representation of women in Indian Companies by eight per cent the Minister said no such increase in percentage is under consideration

Intellectual Property Centres

Intellectual Property Centres                                                                                      Under the National Manufacturing Competitiveness Programme, the Ministry of Micro, Small and Medium Enterprises (MSME) is implementing a Scheme “ Building Awareness on Intellectual Property Rights (IPR) for Micro, Small and Medium Enterprises”. In this scheme, setting up of Intellectual Property facilitation center (IPFC) is one of the main activity, besides other defined activities.   Under the scope & coverage of the scheme IP facilitation Centers for MSMEs are setup in different regions of the country. The aim  of setting up of IP centers are to assist the MSMEs and other prospective entrepreneurs to have an access to best practices for identification, protection and management of IPR as a business tool. The objective of setting up of IPFC is to guide MSME and other target beneficiaries regarding utilisation of IP tools and technologies for better management of their intellectual property related needs.  As on date, Ministry of Micro Small and Medium Enterprises has sanctioned 24 IP facilitation centres for MSMEs, out of which, 16 are operational. The Government has put in place, the following inbuilt monitoring mechanism: ·         The implementing agency for IPFC  constitutes a Steering Committee to supervise its activities and to submit the quarterly progress report to the Central Govt. to monitor the  functioning of IPFC. The said Steering Committee has representatives from Industry, State Government, MSME-Development Institute of the concerned region and other experts in the field of IPR. ·         A representative from the Ministry of MSME / Member(s) of Project Implementation Committee (PIC), constituted for implementation of IPR scheme, may visit IPFC to get information on the progress being made and verify the services being provided by the  IPFC.  ·         Separate accounts in respect of funds released by Government of India for setting up of IPFC are maintained by implementing agency and the same is subjected to test check by the PIC through its representatives.

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Establishment of Supreme Court Benches

Recommendation Regarding Establishment of Supreme Court Benches in Various Parts of the Country The Government has said that representations have been received from time to time from various sources, for establishment of Benches of the Supreme Court in various parts of the country. The Law Commission in its 229th Report, in addition to its 95th Report, has recommended as under:  (1) A Constitution Bench be set up at Delhi to deal with constitutional and other allied issues; and (2) Four Cassation (Zonal) Benches be set up in the Northern region/ zone at Delhi; the Southern region/ zone at Chennai/ Hyderabad; the Eastern region/ zone at Kolkata and the Western region/ zone at Mumbai to deal with all appellate work arising out of the orders/ judgments of the High Courts of the particular region.  Must read please: Giving this information in written reply to a question in the Lok Sabha today, Shri Salman Khurshid, Minister of Law & Justice said that the opinion of the Attorney General was obtained and the matter was referred to the Chief Justice of India, who informed that after consideration of the matter, the Full Court, in its meeting held on 18th February, 2010, unanimously resolved that the recommendations of the Law Commission cannot be accepted.

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Reduction of Interest Rate on EPF

Reduction of Interest Rate on EPF The Union Labour & Employment Minister Shri Mallikarjun Kharge has informed the Rajya Sabha that as per para 60(1) of the Employees’ Provident Funds Scheme, 1952, rate of interest on the Employees Provident Fund is determined by the Central Government in consultation with the Central Board of Trustees, Employees Provident Fund. Central Government declared 8.25% rate of interest on EPF accumulation for the year 2011-12 based on the earnings of the Fund during the year.  Replying to a written question the Minister said however, requests from various Central Trade Unions have been received to maintain the existing rate of interest.  There is no proposal under consideration to restore the Employees Provident Fund rate of interest at 9.5 percent for the year 2011-12.  The interest rate on the Employees Provident Fund in a particular year depends on the earning of the Fund during that year. Based on the earning of the Fund during the year 2011-12, 8.25 percent rate of interest on the Employees Provident Fund has been approved by the Central Government.

Industries where Employing Child Labour is banned

Industries where Employing Child Labour is banned              The Union Labour & Employment Minister Shri Mallikarjun Kharge has informed the Rajya Sabha  that the Government of India has banned employment of children below 14 years for dhabas and domestic work. As per 2001 census, the total number of working children between the age group 5-14 years in the country was 1.26 crore out of which 12 lakhchildren were working in hazardous occupations and processes including domestic workers, Dhabas/Restaurants etc. However, as per NSSO survey 2009-10, the working children are estimated at 49.84 lakh which shows declining trend. The details of the industries where employment of children as per the Child Labour (Prohibition & Regulation) Act, 1986 is prohibited is at Annexure-I.               States/UT Governments are appropriate Government for implementation of the Child Labour(Prohibition & Regulation) Act, 1986 in the areas comes under their jurisdiction. Under Section 3 of the Child Labour (Prohibition & Regulation) Act, 1986, prohibits the employment of children below the age of 14 years in 18 Occupations and 65 Processes. Any person who employs a child in any occupation or process where employment of children is prohibited under the Child Labour (Prohibition & Regulation) Act, is liable for punishment with imprisonment for term which shall not be less than 3 months but which may extend to one year or with fine ranging from Rs.10,000/- to Rs.20,000/-. ****** ST/- ANNEXURE-I List of Occupations & Processes prohibited under the Act. Part A Occupations (Non Industrial Activity) Any occupation concerned with: - (1)                                   Transport of passengers, goods or mails by railways; (2)                                   Cinder picking, clearing of an ash pit or building operation in the railway          premises; (3)                                   Work in a catering establishment at a railway station, involving the movement of a vendor or any other employee of the establishment from the one platform to another or in to or out of a moving train; (4)           Work relating to the construction of a railway station or with any other work where such work is done in close proximity to or between the railway lines; (5)                                   A port authority within the limits of any port; (6)    Work relating to selling of crackers and fireworks in shops with temporary licenses; (7)    Abattoirs/Slaughter House; (8)    Automobile workshops and garages; (9)                                   Foundries; (10)                                Handling of toxic or inflammable substances or explosives; (11)                               Handloom and power loom industry; (12)                               Mines (underground and under water) and collieries; (13)                               Plastic units and fibreglass workshops; (14)  Domestic workers or servants; (15)  Dhabas (roadside eateries), restaurants, hotels, motels, tea shops,       resorts, spas or other recreational centers; and (16)  Diving. (17)   Caring of elephant. (18)   Working in the circus.  Part B  Processes (Industrial Activity) (1)           Beedi-making. (2)           Carpet-weaving including preparatory and incidental process thereof”; (3)           Cement manufacture, including bagging of cement. (4)                                   Cloth printing, dyeing and weaving including processes preparatory and incidental thereto: (5)           Manufacture of matches, explosives and fire-works. (6)           Mica-cutting and splitting. (7)           Shellac manufacture. (8)           Soap manufacture. (9)           Tanning. (10)       Wool-cleaning. (11)                               Building and construction industry including processing and  polishing of granite stones” (12)   Manufacture of slate pencils (including packing).  (13)              Manufacture of products from agate.  (14)              Manufacturing processes using toxic metals and substances such as lead, mercury, manganese, chromium, cadmium, benzene,   pesticides  and asbestos.  (15)              “Hazardous processes” as defined in Sec. 2 (cb) and ‘dangerous        operation’ as notice in rules made under section 87 of the Factories  Act, 1948 (63 of 1948)  (16) Printing as defined in Section 2(k) (iv) of the Factories Act, 1948 (63    of 1948) (17)               Cashew and cashewnut descaling and processing. (18)               Soldering processes in electronic industries. (19)               Aggarbatti’ manufacturing. (20)       Automobile repairs and maintenance including processes incidental thereto namely, welding, lathe work, dent beating and painting. (21)                                  Brick kilns and Roof tiles units. (22)                                  Cotton ginning and processing and production of hosiery goods. (23)                                  Detergent manufacturing. (24)                                  Fabrication workshops (ferrous and non ferrous) (25)                                  Gem cutting and polishing. (26)                                  Handling of chromite and manganese ores. (27)                                  Jute textile manufacture and coir making. (28)                                  Lime Kilns and Manufacture of Lime. (29)                                  Lock Making. (30)                                  Manufacturing processes having exposure to lead such as primary and secondary smelting, welding and cutting of lead-painted metal constructions, welding of galvanized or zinc silicate, polyvinyl chloride, mixing (by hand) of crystal glass mass, sanding or scraping of lead paint, burning of lead in enamelling workshops, lead mining, plumbing, cable making, wiring patenting, lead casting, type founding in printing shops.  Store typesetting, assembling of cars, shot making and lead glass blowing. (31)                                  Manufacture of cement pipes, cement products and other related work. (32)                                  Manufacture of glass, glass ware including bangles, florescent tubes, bulbs and other similar glass products. (33)                                  Manufacture of dyes and dye stuff. (34)                                  Manufacturing or handling of pesticides and insecticides. (35)                                  Manufacturing or processing and handling of corrosive and toxic substances, metal cleaning and photo engraving and soldering processes in electronic industry. (36)                                  Manufacturing of burning coal and coal briquettes. (37)                                  Manufacturing of sports goods involving exposure to synthetic materials, chemicals and leather. (38)                                  Moulding and processing of fiberglass and plastic. (39)                                  Oil expelling and refinery. (40)                                  Paper making. (41)                                  Potteries and ceramic industry. (42)                                  Polishing, moulding, cutting, welding and manufacturing of brass goods in all forms. (43)                                  Processes in agriculture where tractors, threshing and harvesting machines are used and chaff cutting. (44)                                  Saw mill – all processes. (45)                                  Sericulture processing. (46)                                  Skinning, dyeing and processes for manufacturing of leather and leather products. (47)                                  Stone breaking and stone crushing. (48)                                  Tobacco processing including manufacturing of tobacco, tobacco paste and handling of tobacco in any form. (49)                                  Tyre making, repairing, re-treading and graphite beneficiation. (50)                                  Utensils making, polishing and metal buffing. (51)                                  ‘Zari’ making (all processes)’.  (52)  Electroplating; (53)       Graphite powdering and incidental processing; (54)                           Grinding or glazing of metals; (55)                           Diamond cutting and polishing; (56)                           Extraction of slate from mines; (57)                           Rag picking and scavenging; (58)                           Processes involving exposure to excessive heat (e.g. working near   furnace) and cold; (59)                          Mechanised fishing; (60)                          Food Processing; (61)                          Beverage Industry; (62)                          Timber handling and loading; (63)                          Mechanical Lumbering; (64)                          Warehousing; (65)                          Processes involving exposure to free silica such as slate, pencil industry, stone grinding, slate stone mining, stone quarries, and agate industry.

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Constitution of a Committee on Corporate Governance

Constitution of a Committee on Corporate Governance

The Ministry of Corporate Affairs has constituted a Committee under the Chairmanship of Shri. Adi Godrej for framing a ‘National Corporate Governance Policy’ to suggest a comprehensive policy frame work to enable corporate governance of highest quality in all classes of companies without impinging on their internal autonomy to order their affairs in their best judgment. 

The other Members of the Committee are as under: 

[1] Dr. Kiran Mazumdar Shaw,CMD, Biocon Ltd;

[2] Shri Sidharth Birla,, FICCI; DG, IICA;

[3] Shri M.K. Chauhan, Vice Chairman, Asian Centre for Corporate Governance & Sustainability;

[4] Shri R.S. Sharma, former MD, ONGC;

[5] Shri G. Ramaswamy, former President, ICAI;

[6] Shri Deosthali, L&T;

[7]Shri S. Balasubramaniyan, former Chairman, Company Law Board;

[8] Shri S.K. Rungta, ex-CMD, SAIL;

[9] Shri K.K. Mistry, CFO, L&T;

[10] Ms. Ziya Modi, Lawyer;

[11] Shri Sudhir Mittal, Additional Secretary in the M/o Corporate Affairs.

In addition there will be nominees from the CII, Asshcham and the Institute of Cost Accountants of India as members. The President of ICSI as member Secretary and Convener of the Committee. 

The Committee is expected to make its recommendations within six months from the date of its first meeting after wide consultations with all stakeholders in the corporate sector, academics and members of the public. 

Electronic Refund - Service Tax

Committee Constituted to review the Scheme for Electronic Refund of Service Tax Paid on Taxable Services used for Export of Goods

A Committee has been constituted with Director General of Service Tax Smt. Sanghamitra Panda as Chairperson to review the scheme for electronic refund of service tax paid on taxable services used for export of goods. Other members of the Committee are Commissioner of Service Tax, Mumbai-1, Shri Sushil Solanki and Director, TRU Shri J. M. Kennedy.

The Committee has been instructed, as a part of the review, to (a) evolve a scientific approach for the fixation of the schedule of rates for service tax refund and (b) propose a revised schedule of rates for service tax refund, taking into account the revision of rate of service tax from 10% to 12% and also movement towards ‘Negative List’ approach to taxation of services.

The Committee may interact with / call for data from the field formations, export promotion councils, Chambers of Commerce or any other business or industry association, as may be required. The Committee will submit its report to the Chairman, CBEC before 20th June, 2012.

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