Dhanuka Panel Report By Sept 2
The Dhanuka Committee set up the Securities and Exchange Board of India (Sebi) for suggesting changes in the securities related acts is in favour retention of section 43(A) of the Companies Act in the existing form. The committee had met on June 28 to discuss some of the recommendations to be forwarded to Sebi.
The panel will be submitting its report by September 2.
According to section 43 (A) of the Companies Act, private limited companies can be deemed as public limited companies under certain situations; such as if the turnover of the company exceeds a certain value. We feel that any change in the act would be prejudicial to the public interests, said Justice Dhanuka.
Also, the committee was in favour of imposition of stiffer monetary penalties being meted out to companies for violation of Sebi acts .This would act as a deterrent to the market players, it was felt.
Justice Dhanuka said that the Committee is in the process of finalising the recommendations and would be meeting again on July 4 do discuss the pending issues.
The Committee has accepted various proposals from officials of the BSE, NSE, OTCEI, Ambi, Amfi and Institute of Chartered Accountants of India.