SEBI Issues Master Circular for Underwriters
The Securities and Exchange Board of India (“SEBI”) has issued a Master Circular on May 11, 2018, for underwriters registered with SEBI. An “underwriter” is an individual who engages in the business of underwriting an issue of securities of a body corporate, which means that the underwriter would subscribe to the securities of the body corporate when the existing shareholders or the public do not subscribe the securities offered to them. This Master Circular is a compilation of 11 prior circulars issued by SEBI and operational as of March 31, 2018.
SEBI Implements Recommendations on Corporate Governance
SEBI has issued a circular on May 10, 2018 to implement certain recommendations of the Committee on Corporate Governance (“Committee“). The Committee was constituted in June 2017, under the chairmanship of Mr. Uday Kotak. The primary objective of the Committee was to advise on improving corporate governance standards of listed companies in India. Specifically, the Committee was tasked with providing recommendations on diverse issues such as the autonomy of independent directors and their active participation in the functioning of the company, improving safeguards and disclosures pertaining to related party transactions. The Committee has via this circular, listed its recommendations with respect to disclosures on board evaluation, group governance unit and disclosure of medium-term and long-term strategy of listed entities.
Facebook Responds to MEITY’s Second Notice
The Ministry of Electronics and Information Technology (“MEITY”) sought a response from Facebook and Cambridge Analytica on whether personal data of any Indian user has been used by a third party to manipulate local and national elections in any way. The responses submitted by both entities were deemed contradictory. Furthermore, Cambridge Analytica’s reply was termed as “cryptic” and “evasive” by MEITY. A second follow-up notice was sent to both the firms seeking clearer and unambiguous answers by May 10, 2018. Facebook, in an email response to said notice reiterated that it is committed to protecting people’s information and safeguarding the integrity of elections in India. The response read: “We hope we have helped to answer important questions about the changes we have made to further protect user’s information as well as elections from abuse and exploitation including removing fake accounts, increasing ads transparency and reducing the spread of false news”. Cambridge Analytica has shut down effectively, therefore any reply from them is highly improbable.