An independent director earns a sitting fee and commission on the profit of the company. But he won't get any stock options of the company.
Promoters of companies wanting to enter into special profitsharing deals with funds can only do so after obtaining approval from its board and shareholders.
The Tata-Mistry boardroom battle playing out on several Tata Group companies has put the spot light on the role and responsibilities of independent directors.
"I have received stock tips via text messages which I'm sure goes to thousands of people.Investors are being mislead and Sebi can't stay silent on that,"Sebi chairman U K Sinha said.
Sebi is also examining whether price-sensitive information was disclosed to Tata Sons directors and Tata Trusts nominees before it was approved by the boards of operating companies.
The base deal size for an up to 1.5 percent stake in L&T is worth about $297 million while the upsized deal for an up to 3 percent stake could be worth as much as $594 million.
We are taking note of every development and will act immediately if there is any hint of a possible violation of corporate governance, a senior official said.
For instance, even a copy of an executed agreement has to be stamped for its full value if the original agreement has not been stamped in the state, according to the Maharashtra Stamp Duty Act.
In case of the HDFC Life-Max Life merger, the non-compete fee of Rs 850 crore had sparked an uproar with proxy advisory firms and the mutual fund body voicing concerns.
The regulator has also proposed to bring brokers, portfolio managers,chartered accountants and company secretaries who give incidental advise to their clients.
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