Hindi English Translation || Editorial || Remiss regulator: On the NSE fiasco and protecting small investors

Remiss regulator: On the NSE fiasco and protecting small investors

After the NSE fiasco (असफलता, विफलता, गड़बड़ी), SEBI must reaffirm (पुष्टि करना, साबित करना) that it remains focused on protecting small investors

The Securities and Exchange Board of India (SEBI) (It was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. It is the regulator of the securities and commodity market in India owned by the Government of India) earlier this month passed a significant order relating to the country’s largest stock exchange, the National Stock Exchange (The National Stock Exchange of India Limited is the country’s leading financial exchange, with headquarters in Mumbai. It was incorporated in 1992 and, since then, has evolved into an advanced, automated, electronic system offering trading facilities to investor across the country. In 2015, this exchange system ranked the fourth place in the world according to the metric of its trading volume. Trading commenced in 1994 with the launch of the wholesale debt market and a cash market segment shortly thereafter) (NSE) of India. As the markets regulator (an association/statutory body that supervises a particular business activity), whose primary mandate (अधिदेश, मांग) is to ‘protect the interests (ब्याज) of investors in securities (investments, shares, holdings, equities, bonds; securities (shares) of a company formally admitted to the trading platform of the (Stock) Exchange)’, SEBI’s 190-page order raises more questions than it resolves. In particular (विशेष रूप से), it spotlights (लोकप्रियता, सुर्खियों) the regulator’s tardiness (मंदी, विलंबता) in adjudicating (निर्णय करना, सुलझाना) a sensitive matter involving the manner of appointment of a top-level NSE official as well as possible regulatory (नियामक, संगठनात्मक, पर्यवेक्षी) violations (उल्लंघन, तोड़ना, गैर-अनुपालन) by the then CEO and MD Chitra Ramkrishna in sharing confidential internal information with an unknown person. By SEBI’s own admission (प्रवेश, मान्यता, अभिव्यक्ति, घोषणा), the first complaint alleging (आरोप लगाना, राज्य, पुष्टि, दावा) governance (शासन, प्रशासन) issues in the NSE’s April 2013 appointment of Anand Subramanian as Chief Strategic Adviser was received in December 2015. After an exchange of e-mails on the issue between the regulator and the NSE in 2016, SEBI tasked (assign a task to) the exchange’s board (committee, council, panel, directorate, commission, group, delegation) with determining if there had been violations of norms (आदर्श, मानक, सम्मेलन). In November 2017, the NSE sent back a report by the board’s Nomination and Remuneration Committee (Every Listed Public Company’s Board of Directors of the Company (Board) constituted the committee (in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and Regulation 19 of Listing Regulation) to be known as the Nomination and Remuneration Committee consisting of three non-executive directors out of which two shall be the Independent Directors. The Chairman of the Committee shall be an Independent Director. The Nominations and Remuneration Committee is responsible for evaluating the balance of skills, knowledge, experience and diversity of the Board, and periodically reviewing the Board’s structure and identifying potential candidates to be appointed as Directors, and preparing a description of the role and capabilities required for a particular appointment) which flagged (indicate, identify, point out) several irregularities (impropriety, incorrectness, illegitimacy, inappropriateness, unacceptability; inconsistency, variability) pertaining to (concern, relate to, be connected with) his appointment including his lack of relevant experience and that Ms. Ramkrishna alone had interviewed him. Separately, but interconnected, SEBI had in the course of (during (the particular time/activity)) its probe into another matter at the NSE stumbled upon, in 2018, documentary evidence (any evidence that is, or can be, introduced at a trial in the form of documents, as distinguished from oral testimony/evidence) pointing to Ms. Ramkrishna having been in e-mail communication and sharing sensitive information with an unknown person.

The NSE’s conclusion (decision, judgement, inference, interpretation, reasoning) based on findings (conclusion arrived at (as a result of an inquiry)) in a forensic (relating to the application of scientific knowledge & methods to legal problems and legal proceedings) audit by Ernst & Young (it is one of the Big Four accounting firms in the world that provide audit, transaction advisory. The Company offers assurance, audit, tax, financial, and business advisory services to various industries. A multinational professional services network with headquarters in London, England. EY is one of the largest professional services networks in the world) that this unknown person was none other than Mr. Subramanian was sent to SEBI in October 2018. And yet it took the regulator a further 40 months to inexplicably (in a way something can not be accountable/explainable/understandable) conclude that the unknown person ostensibly (in a way that something appears or is officially stated to be true/real, but it might not be; apparently, seemingly, allegedly, professedly, supposedly, purportedly) guiding Ms. Ramkrishna was unlikely (doubtful, implausible, improbable, questionable) to be Mr. Subramanian — the biggest beneficiary (recipient, receiver) of the guidance by getting promoted as Group Operating Officer and receiving annual pay increases that vaulted (jump over, cross over, leap over) his annual compensation (payment, settlement) to ₹4.21 crore by April 2016, from ₹1.68 crore in April 2013. To be sure, SEBI acknowledges (accept, recognize, realize) that it was hamstrung by the NSE’s dilatory (delaying, postponing, deferring) approach in responding to its missives (official communication, press release, bulletin, message, advisory, statement, report, notification, announcement). That the board of a Market Infrastructure Institution (MIIs, which include stock exchanges, clearing corporations and depositories, are “systemically important institutions as they inter-alia (among other things), provide infrastructure necessary for the smooth and uninterrupted functioning of the securities market”), charged with (assign a duty (responsibility, task, job); order, command, direct, instruct, tell, demand, require) safeguarding the trust of millions of investors, distressingly failed to exercise crucial oversight over the conduct of its CEO apart, SEBI too hardly (barely, almost not) covers itself in glory. The regulator spills far too (way too, much too) much ink in almost voyeuristically (in a method that relates to enjoyment/pleasure from watching other’s pain/suffering) sharing the contents of the e-mail exchanges between Ms. Ramkrishna and her ‘unknown guide (adviser, counsellor)’ even as it concludes (come to the conclusion, deduce, infer, decide) that it is unable to establish any “specific loss caused to investors” by the NSE and Ms. Ramkrishna. The onus is now on SEBI to reaffirm that there are no ‘holy cows (an exclamation/sudden utterance of surprise/excitement/shock)’ in its regulatory regime and that it remains laser focused on protecting small investors.

Courtesy: The Hindu

Important Word List With Meaning

1.remiss (adjective)

Hindi Meaning - बेपरवाह, लापरवाह
English Meaning - careless, neglectful, lax, irresponsible, inattentive, heedless.

2.fiasco (noun)

Hindi Meaning - असफलता, विफलता, गड़बड़ी
English Meaning - failure, mess, blunder; disaster.

3.reaffirm (verb)

Hindi Meaning - पुष्टि करना, साबित करना
English Meaning - assert, state, say again strongly.

4.mandate (noun)

Hindi Meaning - अधिदेश, मांग
English Meaning - requirement.

5.interest (noun)

Hindi Meaning - ब्याज
English Meaning - common concerns (in politics/business).

6.in particular (phrase)

Hindi Meaning - विशेष रूप से
English Meaning - particularly, specifically, especially.

7.spotlight (verb)

Hindi Meaning - लोकप्रियता, सुर्खियों
English Meaning - highlight, underline, underscore; draw/focus attention to.

8.tardiness (noun)

Hindi Meaning - मंदी, विलंबता
English Meaning - belatedness, unpunctuality, lateness/delay.

9.adjudicate (verb)

Hindi Meaning - निर्णय करना, सुलझाना
English Meaning - adjudge, judge, decide, settle, resolve.

10.regulatory (adjective)

Hindi Meaning - नियामक, संगठनात्मक, पर्यवेक्षी
English Meaning - organizational, supervisory.

11.violation (noun)

Hindi Meaning - उल्लंघन, तोड़ना, गैर-अनुपालन
English Meaning - contravention, breaking, non-compliance.

12.admission (phrase)

Hindi Meaning - प्रवेश, मान्यता, अभिव्यक्ति, घोषणा
English Meaning - acknowledgement, acceptance, recognition, expression, declaration, confession, revelation.

13.allege (verb)

Hindi Meaning - आरोप लगाना, राज्य, पुष्टि, दावा
English Meaning - state, affirm, claim, indicate; charge, accuse (without proof).

14.governance (noun)

Hindi Meaning - शासन, प्रशासन
English Meaning - administration.

15.norm (noun)

Hindi Meaning - आदर्श, मानक, सम्मेलन
English Meaning - standard, convention, rules of conduct.

16.Securities and Exchange Board of India (SEBI) (noun)

English Meaning - It was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. It is the regulator of the securities and commodity market in India owned by the Government of India.

17.regulator (noun)

English Meaning - an association/statutory body that supervises a particular business activity.

18.National Stock Exchange (NSE) (noun)

English Meaning - The National Stock Exchange of India Limited is the country’s leading financial exchange, with headquarters in Mumbai. It was incorporated in 1992 and, since then, has evolved into an advanced, automated, electronic system offering trading facilities to investor across the country. In 2015, this exchange system ranked the fourth place in the world according to the metric of its trading volume. Trading commenced in 1994 with the launch of the wholesale debt market and a cash market segment shortly thereafter.

19.securities (noun)

English Meaning - investments, shares, holdings, equities, bonds; securities (shares) of a company formally admitted to the trading platform of the (Stock) Exchange.

20.then (adjective)

English Meaning - earlier, previous.

21.of one’s own admission (phrase)

English Meaning - according to oneself.

22.task (verb)

English Meaning - assign a task to.

23.board (noun)

English Meaning - committee, council, panel, directorate, commission, group, delegation.

24.Nomination and Remuneration Committee (noun)

English Meaning - Every Listed Public Company’s Board of Directors of the Company (Board) constituted the committee (in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and Regulation 19 of Listing Regulation) to be known as the Nomination and Remuneration Committee consisting of three non-executive directors out of which two shall be the Independent Directors. The Chairman of the Committee shall be an Independent Director. The Nominations and Remuneration Committee is responsible for evaluating the balance of skills, knowledge, experience and diversity of the Board, and periodically reviewing the Board’s structure and identifying potential candidates to be appointed as Directors, and preparing a description of the role and capabilities required for a particular appointment.

25.Nomination and Remuneration Committee of NSE (noun)

English Meaning - Pursuant to Section 178 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the Board of Directors of NSE is mandated to constitute a Nomination and Remuneration Committee which shall, amongst other things, formulate the criteria for determining qualifications, positive attributes and independence of a Director and criteria for identifying persons who may be appointed in senior management and recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees. (‘Pursuant to’ means in accordance with).

26.flag (verb)

English Meaning - indicate, identify, point out.

27.irregularity (noun)

English Meaning - impropriety, incorrectness, illegitimacy, inappropriateness, unacceptability; inconsistency, variability.

28.pertain to (verb)

English Meaning - concern, relate to, be connected with.

29.lack (noun)

English Meaning - absence, unavailability, non-existence.

30.in the course of - (phrase)

English Meaning - during (the particular time/activity).

31.stumble upon (phrasal verb)

English Meaning - find something accidentally/unintentionally; come across something by chance.

32.documentary evidence (noun)

English Meaning - any evidence that is, or can be, introduced at a trial in the form of documents, as distinguished from oral testimony/evidence.

33.point to (verb)

English Meaning - indicate, suggest, denote.

34.conclusion (noun)

English Meaning - decision, judgement, inference, interpretation, reasoning.

35.base on (phrasal verb)

English Meaning - form, establish.

36.findings (noun)

English Meaning - conclusion arrived at (as a result of an inquiry).

37.forensic (adjective)

English Meaning - relating to the application of scientific knowledge & methods to legal problems and legal proceedings.

38.audit (noun)

English Meaning - assessment, evaluation, appraisal, inspection, examination, scrutiny.

39.Ernst & Young (EY) (noun)

English Meaning - it is one of the Big Four accounting firms in the world that provide audit, transaction advisory. The Company offers assurance, audit, tax, financial, and business advisory services to various industries. A multinational professional services network with headquarters in London, England. EY is one of the largest professional services networks in the world.

40.inexplicably (adverb)

English Meaning - in a way something can not be accountable/explainable/understandable.

41.ostensibly (adverb)

English Meaning - in a way that something appears or is officially stated to be true/real, but it might not be; apparently, seemingly, allegedly, professedly, supposedly, purportedly.

42.unlikely (adjective)

English Meaning - doubtful, implausible, improbable, questionable.

43.beneficiary (noun)

English Meaning - recipient, receiver.

44.vault (verb)

English Meaning - jump over, cross over, leap over.

45.compensation (noun)

English Meaning - payment, settlement.

46.to be sure (phrase)

English Meaning - certainly, surely; used to highlight something.

47.acknowledge (verb)

English Meaning - accept, recognize, realize.

48.hamstring (verb)

English Meaning - restrict, cripple, hinder, obstruct, slow down (the ability or efficiency of someone/something); to make ineffective, to make powerless.

49.dilatory (adjective)

English Meaning - delaying, postponing, deferring.

50.missive (noun)

English Meaning - official communication, press release, bulletin, message, advisory, statement, report, notification, announcement.

51.Market Infrastructure Institutions (MIIs) (noun)

English Meaning - MIIs, which include stock exchanges, clearing corporations and depositories, are “systemically important institutions as they inter-alia (among other things), provide infrastructure necessary for the smooth and uninterrupted functioning of the securities market”.

52.regime (noun)

English Meaning - system.

53.infrastructure (noun)

English Meaning - the basic physical or organisational structure or framework that a country or organization needs in order to function properly. For a whole nation, it includes all the physical systems such as buildings, roads & railways networks, utilities, etc.

54.charge with (verb)

English Meaning - assign a duty (responsibility, task, job); order, command, direct, instruct, tell, demand, require.

55.distressingly (adverb)

English Meaning - upsettingly, worryingly, affectingly.

56.oversight (noun)

English Meaning - supervision, surveillance, inspection, administration, management, direction, control.

57.conduct (noun)

English Meaning - behaviour, way of behaving, performance, way of working; actions, acts, activities, deeds.

58.hardly (adverb)

English Meaning - barely, almost not.

59.cover oneself in glory (phrase)

English Meaning - perform/do something very well.