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TMI BlogRestructuring of the Subsidiary ManagementX X X X Extracts X X X X X X X X Extracts X X X X ..... e / 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 able to provide a safe and transparent market and effectively discharge their responsibilities to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice, 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 of the subsidiary company shall be a director on the Board of Subsidiary. The CEO shall not be a sub-broker of the subsidiary company or a broker of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 office for a period of one year from the date of assumption of the office or till the Annual General Meeting of subsidiary company whichever is earlier. g) There should be a gap of at least on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : a) Verification of compliance of margin payments and other risk management measures applicable to the subsidiary company as a broker member of another exchange. b) Reporting requirements between the subsidiary and exchange, such as placing quarterly reports on the financial and accounts of the subsidiary and on review of operations of the subsidiary before the Governing Board of exchange at it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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