Sebi plans change in rules for appointment of independent directors

The Securities and Exchange Board of India has proposed sweeping changes to rules governing independent directors, including norms that pertain to their appointment and removal, eligibility criteria, and remuneration structure.

The regulator plans to introduce the dual-approval system for the appointment and removal of independent directors. This requires the majority of all shareholders as well as the majority of minority shareholders, other than the promoter and promoter group, to approve the appointment and removal of such directors.

The dual-voting structure has been adopted in countries such as the UK for premium listed companies that have a controlling shareholder.

“The present system of appointment of IDs may be influenced by the promoters – in recommending the name of ID and in the approval process by virtue of shareholding. This may hinder the ‘independence’ of IDs and undermine their ability to differ from the promoter, especially in cases where the interests of promoter and of minority shareholders are not aligned,” Sebi said in a discussion paper on Monday, seeking public comments on the proposals by April 1.

On the eligibility criteria for IDs, Sebi proposed that key managerial personnel and employees of promoter group companies cannot be appointed as IDs in a company unless there is a cooling-off period of three years. This restriction will also apply in the case of relatives of such managerial personnel.

“The overarching thrust is to find the true definition of independence. Distance from promoters, a distance of self and family from the entire ecosystem of the entity, any hint of pecuniary benefits that may influence the future are all welcome elements of independence,” said Shailesh Haribhakti, non-executive chairman of companies including L&T Finance Holdings, Blue Star and NSDL e-Governance Infrastructure.

Trapping the Maoists is not an intelligence failure

CDid the CRPF blindly fall into the trap of the Maoists? Or was there any strategic mistake in the campaign? One after another information, claims, allegations and counter-allegations are coming to the fore in Chhattisgarh to find the cause of Saturday’s incident.
CRPF chief Kuldeep Singh, however, claimed that there was no strategic flaw in the paramilitary operation in Chhattisgarh. There was nothing wrong with the intelligence. Although another source claimed that the Maoists were trapped in a jungle war by the CRPF’s Special Cobra Force.
According to another source, at least 400 Maoists surrounded a large contingent of CRPF jawans from three directions. The Maoists fired at them like rain by cornering them in a treeless area. Powerful IED explosions also occurred. No one found a way to hide or escape.
According to an all-India media source, the CRPF had information that two top Maoist leaders, Mandvi Hidma and her accomplice Sujata, were hiding in Bijapur. Which was actually a leaf trap for the Maoists. Experts think so. The CRPF launched a crackdown on the Maoists on the basis of that misinformation.
However, CRPF Director General Kuldeep Singh is reluctant to call the Maoist crackdown a failure. In his words, “If the intelligence information was wrong, the forces would not have gone on the operation.” If the strategy failed, the bodies of the Maoists killed in the three tractors would not have been removed. Asked how many Maoists were killed in the crackdown in Chhattisgarh, Kuldeep said it was not possible for him to say the exact number. However, he estimates that at least 25-30 Maoists have been killed. Congress leader Rahul Gandhi reiterated, “If the intelligence information is not wrong, why did the same number of people from both the jawans and the Maoists die?” This means the operation was not carried out properly. The soldiers had to be martyred for this mistake
Kuldeep arrived in Chhattisgarh on Sunday to check the situation on the instructions of Union Home Minister Amit Shah. Although Kuldeep did not acknowledge the flaws in the intelligence or tactics of the operation, he acknowledged that the paramilitary Cobra forces had lost their way in the surprise attack. Other top officials also said the Maoists had ‘trapped’ the army. A report in this regard will be sent to Chief Minister Bhupesh Baghel and the Center on Monday.
At least 25 CRPF personnel have been killed in a Maoist attack in Chhattisgarh. On Saturday, the joint forces conducted separate operations in Sukma and Bijapur in South Bastar, a Maoist-dominated area. The Maoists retaliated as soon as they started the operation with a team of about 2,000 soldiers and officers. The clash lasted for about three hours. At least 25 soldiers were martyred. Many Maoists have also been killed