Companies must conduct AGMs & send annual reports regularly: SEBI
The listed companies that do not conduct annual general meetings (AGMs) and are not sending annual reports regularly to its shareholders will face investigations, market regulator Securities & Exchange Board of India (SEBI) has warned.
On Monday, SEBI chairman UK Sinha stressed that he would ask his team to launch probe into all cases where annual general meetings haven't been called and annual reports haven't been sent.
Speaking at "Securities Market & the Common man" organized by National Stock Exchange (NSE), Mr. Sinha said, "If they are not sending annual reports and not conducting AGMs, these are clear cut violations." Mr. Sinha said in case a company is found in violation of those rules, the regulators would take it very seriously and deal with very quickly.
He added that listed companies can send the annual reports via electronic mode in case shareholders have agreed to it.
He also said that the regulator wanted mutual fund industry to roll out less number of newer schemes. It may be noted here that the regulator can not force mutual fund industry to stop introducing new schemes.
Slashing the number of days required to complete the initial public offer (IPO) process is also one of the current priorities of the regulator. At present, the IPO process takes twelve days for a company.
