In this column , I will discuss important company law case laws and intricacies surrounding the interpretation of Indian Company Law.
Thursday, February 20, 2025
#PAYTM'S FORMER INDEPENDENT DIRECTOR ,COMPLIANCE OFFICER AND FORMER DIRECTORS WERE DIRECTED TO PAY RS 3.32 CRORE TO SETTLE ALLEGED SEBI NORMS VIOLATIOS
#PAYTM'S FORMER INDEPENDENT DIRECTOR ,COMPLIANCE OFFICER AND FORMER DIRECTORS WERE DIRECTED TO PAY RS 3.32 CRORE TO SETTLE ALLEGED SEBI NORMS VIOLATIOS
Allegations include those involving benefits given to Vijay Shekhar
Sharma, Promoter of the company and his relatives, and authorising and signing
public offer documents that contained incorrect statements and incomplete
disclosures on the promoter entity.
The above mentioned officials of
Paytm have paid fines to the Securities and Exchange Board of India
(SEBI) to settle alleged violation of norms.
Failure to ensure conformity with the regulatory provisions applicable to
the listed entity in letter and spirit, in violation of Regulation 6 (2) of
LODR Regulations, 2015.
Independent Directors being part of NRC failed to discharge duties with
unbiased and independent approach while decision-making w.r.t. matters
involving benefits to Mr. Vijay Shekhar Sharma (MD&CEO, Paytm) and his
relatives, in violation of Regulation 4 (2) of LODR Regulations, 2015.
Directors being part of
Board of Director as on date of Prospectus authorized and signed offer
documents containing incorrect statement and incomplete disclosures w.r.t.
Company being professionally managed company.
NON COMPLIANCE WILL
RESULT IN NOT ONLY MONETARY LOSSES BUT ALSO BAD IMAGE IN THE INVESTORS MARKET.
Monday, February 10, 2025
Monday, February 3, 2025
WHY COMPLIANCE OFFICERS OF SOME LISTED COMPANIES ARE RESIGNING THEIR POSITION OF LATE ?
WHY COMPLIANCE OFFICERS OF SOME LISTED COMPANIES ARE RESIGNING THEIR POSITION OF LATE ?
MANDATORY APPOINTMENT OF COMPLIANCE OFFICER FOR LISTED COMPANIES
SEBI expects numerous compliances from listed entities and vide SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”) establishes a framework for corporate governances applicable to every entity listed with stock exchange(s) in India.
One of the primary requirements of the LODR is the appointment of a qualified company secretary in the capacity of a compliance officer, to ensure conformity with SEBI regulations in letter as well as spirit.
In majority of the cases, as per the PIT Regulations, a compliance officer could be any senior officer who is designated so and is reporting to the board of directors and in normal course , Company Secretaries are designated as Compliance Officer in a listed company.
Compliance officer being one of the key personnel has an important role to play in the company for monitoring adherence to SEBI regulations, preservation of price sensitive information and implementation of code.
WHAT ARE THE ROLES AND RESPONSIBILITIES OF A COMPLIANCE OFFICER?
- To carry out due diligence on the company’s records.
- To Handle Quarterly, half-yearly& annual compliances.
- To liaison before stock exchanges on behalf of the company and to take care of compliancesf PIT Regulations , Insider trading and LODR provisions.
- To authenticate all legal documents of the company.
- To bridge the gap between the company and investors.
- To draft minutes and keep records of all statutory meetings.
- Implementation and management of compliance reporting to all the statutory bodies.