Delisting norms to become simpler: SEBI The Securities and Exchange Board of India (Sebi) is planning to review norms with respect to delisting of companies to make the process smoother, said chairperson Madhabi Puri Buch in an event on Thursday. In addition, the regulator is looking to revise regulations for perpetual insiders, which include founders/promoters and senior executives. She pointed out that currently there exists no window for them to trade shares. “It was believed that we will not review the delisting norms and will stay with the reverse book-building process. We floated a consultation paper and have received feedback; we will take the proposal to our board during the next board meeting.” Sebi had, on August 14, issued a consultation paper for reviewing the voluntary delisting norms. She asserted that the regulator is not guided by dogma but only by data and logic. In case of perpetual insiders, she said that while there exists a regulation called the ‘Trading Plan’ for such perpetual insiders, nobody has ever filed the same. “Humara regulation hi galat hai (Our regulation itself is wrong),” she added. As a result, it is under review following public consultation and will be taken up in the upcoming board meets. “It was believed that Sebi is very dogmatic about insider trading and the trading plan. We operate on fundamental principles and data, and so again we had a consultation paper on reforming the ‘trading plan’,” she said. This proposal, too, could be taken up in December or January by the Sebi board. She also responded to the feedback that the regulator was on a hyperdrive and consultation papers were being issued every third day by saying that it was reflection of change in regulatory attitude for the better. Between 2003 and 2013, only 7% of circulars issued by the market regulator were consultation paper. However, over the next nine years, it rose to 17%, clearly indicating that it was consulting more. And in the past year, this number has almost doubled to 33%. According to her, it was fine if decisions are delayed but no regulation will come out without analysis of data. “So, it is not that we are imposing more regulations on the market, you are getting that feeling because Sebi is consulting more,” Buch said. “If you tell us, we will not consult,” she added in jest. Buch also made it clear that the Sahara case would continue despite the demise of founder Subrata Roy. According to PTI, she said that the Sahara matter was about an entity’s conduct and added that it would continue regardless of whether an individual is alive or not. (With inputs from PTI)
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.