Thanks to Blog Reader Shahzad Vasaigara for this one…….and thanks Shahzad for ‘still’ reading my blog! In July 2011,SEC had communicated a four pager to Nasdaq listed and Beijing based,Yongye International Inc,a Chinese Company requiring them to reply to the points raised on the accuracy and adequacy of the Financial and Accounting Information that they had filed…quite analytical really and requiring more specific and better non conflicting disclosure….and clearly beneficial to Investors http://www.sec.gov/Archives/edgar/data/1398551/000000000011041193/filename1.pdf Likewise,surely in due course our Capital Markets Regulator SEBI and the two major Exchanges BSE and NSE will be pushed to go deeper and more analytical into the Mandatory Filings by Listed Companies and require more information and clarifications on the disclosures….. in the best interests of Investors Surely it will be sound and comprehensive inhouse Objective and Subjective Analytical and Assessment Skills that will help SEBI regulate better and the Exchanges run more efficiently and effectively by requiring and insisting that Listed Companies and those seeking Listing comply fully with all Disclosure Norms….maybe such Norms need to be redefined to be made more comprehensive and even analytical……to meet the prime twin objectives of Investor Education and Protection…I have observed that over the years ,SEBI has really got more stringent and demanding on Prospectus Content and Disclosures by Companies who are planning a Public Issue of Shares….but More serious Work needs to be done to ensure timely,accurate and adequate Company Filings with Exchanges ….what happens now for Secondary Market Listed Companies is simply this
- Companies issue Clarifications,proactively or when sought, to the Exchanges where they are listed, on Media Reports on them
- Companies simply comply with the Listing Agreement and other mandatory requirements to file regularly with the Exchanges any announcement on results,board meetings to discuss and decide on capex,expansion or diversification,changes in capital structure etc
Sent from my iPhone
On Apr 14, 2012, at 22:09, “Gaurav Parikh” wrote:
Lovely to hear from you…this is a inspiring illustration of the depth that SEC in USA goes to in their endeavour to both Protect and Educate the Investor by requiring and ensuring good Corporate Governance and Full Disclosures and Performance Analysis from listed Companies
May I reproduce your email to me on my blog with this SEC link and my comments ?
—– Original Message —–From: ShahzadTo:GauravSent: Saturday, April 14, 2012 4:34 PMSubject: SEBI should learn a few things from SEC
Hello Sir,Hope u are doing well. Have been still reading your blog.Sir, i just went thru one SEC document in which they have raised many questions over the corporate governance and compliance issues of a Chinese agri company listed in NASDAQ. They have literally tried their best to make the company bow down, after doing proper analysis of their annual reports.The whole letter is very crisp and to the point. When i read it, i could really imagine some big Judge throwing continuous questions on the CEO of this company.I thought even you would like to read it.Although, i have never come across any such document by SEBI, i think this one is a real tough one and i am waiting gor the day when even our regulators start getting strict in the markets for betterment of investors.—
Thanks & Kind Regards
Shahzad Jimmy Vasaigara_________________________________________________________________________________PS : Just Spoke to Another Faithful…and he reminded me that this was the reason why Reliance ,when it tried,was perhaps unable to list on Nasdaq when Infosys could !…inability to make adequate disclosure !!! ?