AGMs cannot be 'chai-samosa' parties: Sinha

Stressing on a need for better governance practices at listed companies, U K Sinha, chairman of the Securities and Exchange Board of India (Sebi), on Friday said things were changing for good and shareholder meetings should not be like a "chai and samosa party". Sinha gave credit for this change to growing activism of institutional investors, stronger regulations and an improved surveillance mechanism at Sebi. He asked independent directors to act like "an extended arm of the regulator" when companies discuss business matters in their board meetings.

The Sebi chief also asserted the onus needs to be put more on the promoters or the top executives, rather than companies as a whole, when it came to penalties.