{"id":34754,"date":"2018-10-31T13:11:23","date_gmt":"2018-10-31T07:41:23","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34754"},"modified":"2018-10-31T13:11:23","modified_gmt":"2018-10-31T07:41:23","slug":"norms-to-curb-fund-diversion-mooted","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/norms-to-curb-fund-diversion-mooted\/","title":{"rendered":"Norms to curb fund diversion mooted:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/norms-to-curb-fund-diversion-mooted\/article19804386.ece\"><span style=\"font-weight: 400;\">Norms to curb fund diversion mooted<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">SEBI panel proposes that audit committees must monitor flows to unlisted units.<\/span><\/p>\n<p><strong>Introduction:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Audit committees should monitor the flow of funds to unlisted subsidiaries, including those established overseas.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The audit committee should also review the utilization of funds of the listed entity infused into unlisted subsidiaries, including foreign subsidiaries.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Recommendations:<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Among recommendations related to the role of independent directors, the panel sought disclosure of the expertise of the directors being appointed, and capping the maximum number of directorships to seven by April 2020.<\/span><\/li>\n<\/ul>\n<p><b>Rules for listed entities:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Listed entities should put in place proper regulatory framework while sharing unpublished price-sensitive information with promoters or any other significant shareholders.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Listed companies should also be required to have at least six directors on the board with a minimum of 50% representation of independent directors \u2014 including one woman director.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Enhanced disclosure requirements related to abrupt resignation of independent directors and auditors should be put in place.<\/span><\/li>\n<\/ul>\n<p><b>Why recommendation is important?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The recommendation assumes significance in the wake of SEBI\u2019s January order barring Vijay Mallya and six other entities from the securities market after a probe found that funds were diverted from United Spirits to group companies, including Kingfisher Airlines.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It would strengthen corporate governance; implementation would require fundamental changes on multiple fronts.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Norms to curb fund diversion mooted:\u00a0 Context: SEBI panel proposes that audit committees must monitor flows to unlisted units. Introduction: Audit committees should monitor the flow of funds to unlisted subsidiaries, including those established overseas. The audit committee should also review the utilization of funds of the listed entity infused into unlisted subsidiaries, including foreign&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/norms-to-curb-fund-diversion-mooted\/\">Continue reading <span class=\"screen-reader-text\">Norms to curb fund diversion mooted:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34754","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704903588},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34754"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34754\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}