SEBI finds 22 PSUs violating norms

SEBI finds 22 PSUs violating norms To bookmark you need to sign in A total of 17 companies 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. Market regulator Securities and Exchange Board of India (SEBI) has found 22 public sector companies including giants like Oil and Natural Gas Corp (ONGC), Coal India and Indian Oil Corp (IOC) to have violated various capital market guidelines. State Bank of India (SBI), the country's largest lender, however, filed for settlement of a case against it with the regulator, Parliament was informed Friday. Rural Electrification Corp, ONGC, NHPC, NTPC, Neyveli Lignite Corp and Steel Authority of India (SAIL), are among the 17 PSUs found to have violated these board of directors norms by capital market regulator SEBI. Others include SAIL, ITDC, HMT, Shipping Corporation, NTPC, NHPC, STC, Nalco and EIL. A total of 17 companies 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. SBI 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 (PSUs) were submitted in a written reply by Minister of Finance Arun Jaitley to the Lok Sabha. Other companies are Chennai Petroleum Corp, SJVN Limited Mangalore Refinery and Petrochemicals, Natural Fertilizers, National Aluminium Company Engineers India, Shipping Corp of India, Container Corp of India and State Trading Corporation of India (STCI). "SEBI in a letter dated 7 November 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 units -- Indian Tourism Development Corporation Limited (ITDC) and HMT Limited -- had failed to submit annual audited financial results within the prescribed time limit. SEBI had rejected pleas from the companies 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 Corp. Accordingly, the company 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% public holding. Public sector units Sicom Limited and Dena Bank were found to have violated disclosure norms.