9911796707
TMI BlogRestructuring of the Subsidiary ManagementX X X X Extracts X X X X X X X X Extracts X X X X ..... cturing of the Subsidiary Management The small stock exchanges were permitted to promote / float a subsidiary / company vide SEBI Circular no. SMD-II/Policy/Cir-37/99 dated November 26, 1999. SEBI has inspected subsidiary companies and has reviewed their functioning. SEBI is of the view that the Management Structure of the subsidiaries needs to under go change in order enable them to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all not hold any position concurrently in the stock exchange (parent exchange). The appointment, the terms and conditions of service, the renewal of appointment and the termination of service of CEO shall be subject to prior approval of SEBI. Reconstitution of Governing Board The Governing Board of the subsidiary company shall have the following composition: a) The CEO o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arket. e) For purpose of nomination as Public Representatives the Governing body of parent exchange may forward the names of the persons to the SEBI for its approval. The SEBI shall, however have the right to nominate persons, whose names have not been forwarded by the governing body of the stock exchange. f) The Public Representatives to be appointed as directors shall hold the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany The parent exchange shall be responsible for all risk management of the subsidiary company and shall set up appropriate mechanism for the supervision of the trading activity of subsidiary company. Such mechanism shall include: a) Verification of compliance of margin payments and other risk management measures applicable to the subsidiary company as a broker member of anoth ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
