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Sebi Finds 22 PSUs Violating Norms; SBI Files For Settlement

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Sebi has found 22 public sector firms including giants like ONGC, Coal India and IOC to have violated various capital market guidelines, while banking major SBI has filed for settlement of a case against it with the regulator, Parliament was informed today.

Others include SAIL, ITDC, HMT, Shipping Corporation, NTPC, NHPC, STC, Nalco, EIL, REC and Neyveli Lignite.

A total of 17 firms were found to be non-compliant with the norms pertaining to the composition of the board of directors. These rules were related to minimum number of independent directors.

State Bank of India has filed for a consent application to settle adjudication proceedings against for alleged violations of debenture trustee norms.

It is alleged to have had outstanding loans with certain companies when it acted as debenture trustee for their issues.

The details of violations by these Public Sector Units were submitted in a written reply by Minister of Finance Arun Jaitley to the Lok Sabha.

Indian Oil Corporation (IOC), Rural Electrification Corporation, Oil and Natural Gas Corporation (ONGC), NHPC, NTPC, Neyveli Lignite Corporation and Steel Authority of India are among the 17 PSUs found to have violated these board of directors norms by capital market regulator Sebi.

Other firms are Chennai Petroleum Corporation, SJVN Ltd, Mangalore Refinery and Petrochemicals, Natural Fertilizers, National Aluminium Company, Coal India, Engineers India, Shipping Corporation of India, Container Corporation of India and State Trading Corporation of India.

"Sebi vide letter dated November 7, 2014, informed the Ministries concerned about the non-compliance... Sebi also requested the Ministries concerned to expedite the appointment of independent directors in these 17 PSUs," Jaitley said.

Two state-run firms -- Indian Tourism Development Corporation Ltd and HMT Lts -- had failed to submit annual audited financial results within the prescribed time limit.

Sebi had rejected the firms plea for extension of time and were further advised to publish an announcement disclosing the reasons for the delay as well as indicate the timelines for announcement of the results, Lok Sabha was informed.

Other violations by PSUs include non-compliance of minimum public shareholding norms by Haryana Financial Corporation.

Accordingly, the firm has been imposed with various restrictions from Sebi such as it cannot offer corporate benefits like bonus shares dividends to its non-public shareholders, till it achieves 10 per cent public holding.

Public sector units Sicom Ltd and Dena Bank were found to have violated disclosure norms.

Sicom was imposed with a penalty of Rs 5 lakh earlier this year, while Dena Bank had settled the case with Sebi on payment of Rs 10 lakh in 2011.

(Agencies)
 


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