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SEBI hints at tighter norms for corporate governance, delisting

Securities and Exchange Board of India will introduce a system of electronic filing of information by companies, while looking at tighter norms on delisting and corporate governance.

Securities and Exchange Board of India will also start a nationwide investor education campaign shortly to increase awareness among investors, its chairman G N Bajpai told reporters at the PHDCCI in New Delhi on Friday.

SEBI will start a pilot project of electronic filing of company information involving 200 companies by June this year and extend it to 2,000 companies by April 2003.

"The system of electronic filing of information will reveal quarterly information, segment reporting and shareholding pattern," Bajpai said.

State-owned NIC is developing the software for the new system, he informed.

Bajpai also hinted at more stringent norms for corporate governance.

Although it is still a thought, he said initially the government may provide the funds for getting corporates rated by credit rating agencies on the basis of their performance in implementing corporate governance.

Later on corporates can get themselves rated, he said in reference to the prevailing system of rating debt instruments.

Bajpai stressed on strengthening enforcement saying, "Once the ground rules are laid down, we will like to enforce it."

He also said that SEBI was having a relook at the surveillance system. "We will be looking at the efficacy of all the regulations and decide which one is to be amended."

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