Noise pollution – it’s strange to think how much it affects every one of us whether rich or poor; young or old; men or women; drivers or pedestrian or Minster or a worker; there is hardly any escape from such ubiquitous noise pollution. Noise pollution is making NOIDA/Delhi and any other Metros audibly intolerable places to live in. I am very sure that our brethrens dwellers from various other urban and semi-urban cities worldwide would also have the similar experiences and predicament to narrate. Noise pollution in our country is emerging as a major threat not only to individual health but also to social harmony and well-being and is likely to have both economic and societal consequences.
Pause and ponder how much we IGNORE IT.
A decade ago, on 14th February 2000, the Union ministry for environment and forests (MoEF) enacted the Noise Pollution (Regulation and Control) Rules, but was hardly ever holistically implemented. The Act recognizes that there is “increasing ambient noise levels in public places from various sources, inter alia, industrial activity, construction activity, generator sets, loudspeakers, public address systems, music systems, vehicular horns and other mechanical devices” and further states that these have “deleterious effects on human health and the psychological well-being of the people”. Consequently, the government also considered it “necessary to regulate and control noise producing and generating sources with the objective of maintaining the ambient air quality standards in respect of noise”. As per this Act; the ambient air quality standards in respect of noise for different areas/zones have been specified in the box.
Ambient Air Quality Standards in respect of Noise
Area Code Category of Areas/ Zone Limits in dB(A) Leq *
Day Time Night Time
(A) Industrial Area 75 70
(B) Commercial Area 65 55
(C) Residential Area 55 45
(D) Silence Zone 50 40
Notes:
1. Day time shall mean from 6.00 a.m. to 10.00 p.m.
2. Night time shall mean from 10.00 p.m. to 6.00 a.m.
3. “Silence zone” is defined as an area comprising not less than 100 metres around hospitals, educational institutions and courts. The silence zones are zones which are declared as such by the competent authority.
4. Mixed categories of areas may be declared as one of the four above mentioned categories by the competent authority.
* dB(A) Leq denotes the time weighted average of the level of sound in decibels on scale A which is relatable to human hearing.
A – “Decibel” is a unit in which noise is measured.
“A”, in dB(A) Leq denotes the frequency weighting in the measurement of noise and corresponds to frequency response characteristics of the human ear.
Leq : It is an energy mean of the noise level, over a specified period.
Act empowers State Governments to take measures for abatement of noise including noise emanating from vehicular movements and ensure that the existing noise levels do not exceed the ambient air quality standards specified under these rules. The authority has been made responsible for the enforcement of noise pollution control measures and the due compliance of the ambient air quality standards in respect of noise. The law also empowers the local police station officer to take action whenever complaints are received. It is, however, not often common public is compelled to come forward to approach the police.
The problem of noise pollution act presently is more concerned with how it impacts public well-being, rather than how it affects the economics. However, there has been a study by OECD, an international organization helping governments tackle the economic, social and governance challenges of a globalised economy, which reports on the social costs from transport noise:
• Lower property values.
• Health care costs can spiral when dealing with loss of sleep, hearing problems or stress.
• Affecting one’s work income due to poor concentration, communication difficulties or fatigue due to insufficient rest.
Ever since the liberalization of 1991, the economic activities in the country have grown at pace, which has also accelerated the growth of automobile, and maintains at double digit figures. The number of vehicle on the road have increased exponentially and contributing to intolerable noise pollution, if left uncontrolled will grow monstrously beyond the control and our society will have to pay dearly.
The decibel levels the noise pollution has already reached levels which doesn’t need any substantiations; the two video clippings of traffic on a road having a hospital and two schools – which comes under “Silence Zone”; uploaded at the web site ‘Youtube’ at the following URLs, speaks volumes:
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It’s recently, during March 2011, MoEF has initiated an action of monitoring the noise levels in various cities and 35 numbers of real time ambient noise monitoring systems (five each in seven cities of India, viz., Delhi, Lucknow, Hyderabad, Kolkata, Mumbai, Chennai and Bangalore) have been installed in phase – I and during phase – II another 35 will be installed in this year [2011] in the same seven cities. The phase – III; 90 more monitoring stations in 25 cities, are scheduled for installation next year.
The statistically relevant result will take few more years to initiate a policy decision and the real implementation will hopefully take another few more years and surely another decade will elapse, by that time some of us will definitely lying peacefully under the grave. It is a well known fact that almost (100%) of private buses, CVs, SUVs, etc., gets fitted with pressure horns immediately on taking deliveries. A simple conventional noise monitoring methods can immediately predict existing noise levels for taking an immediate prudent strong willed decision to initiate administrative actions for banning of manufacture, supply/selling, and installation of nuisance making horns and strong implementation thereafter.
It is thus imperative from the foregoing that the individual estrangement caused by the noise pollution can have negative and harmful societal and economic consequences. It’s high time that governments should take immediate steps to completely ban manufacture, supply and installation of Pressure Horns in all types of motor vehicle to mitigate the nuisance of Noise Pollution and the laws are implemented as strictly as air pollution norms and ban of plastic bags are being implemented.
Furthermore, as a long term solutions awareness programmes should be launched country wide, looping in the NGOs, media, schools & colleges and others to sensitize the public on the problems of vehicular and all other sources of noise pollution and take them out from syndrome of habitual honking and noise making.
SEBI has issued a circular which permit Stock Exchanges to introduce derivative contracts (Futures and Options) on foreign stock indices in the equity derivatives segment. This circular comes into force from today. It is available on SEBI website Click Here: at http://www.sebi.gov.in/circulars/2011/cirdnpd022011.pdf
Eligibility Criteria: The minimum market capitalization mandated is USD 100 billion and the stock exchange may introduce derivatives on a twenty four foreign stock index if the derivatives on that Index is available. Index should be is “broad based”, that is, the Index consists of a minimum of 10 constituent stocks and no single constituent stock has more than 25% of the weight, computed in terms of free float market capitalization, in the Index.
Trading in derivatives on Foreign Stock Indices shall be restricted to residents in India.
- In: Competition Law | Economic Reforms | Ethics | Governance | Inflation | Policy
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“Economics can be made more productive by paying greater and more explicit attention to the ‘ethical’ considerations that shape human behavior and judgments.” Says Nobel laureate Dr. Amartya Sen.
It is almost three years now since I took a conscious decision to retire prematurely from an exceptionally fulfilling and absorbing professional career of more than thirty and half years to pursue my subjects of interests. However, the recent past high inflation has already started making holes into my pockets, forcing me to rethink on that decision and join back the services.
The latest release of the statistics on inflation blames high prices of food items, especially now on onions, led to a sharp spike in India’s annual food inflation to 18.32 percent for the week ended Dec. 25, 2010, compared to 14.44 percent the week before. The fifth straight week of rise in food inflation rate, based on wholesale prices, was pushed back to double digits in the second week of December, according to weekly data released by the commerce and industry ministry.
In the recent past some of our eminent economists, policy makers and lawmakers at seminars had opined that the double digit inflation is caused by some of exogenous factors; is a worldwide phenomenon and due to present high growth rate of economy – vociferously condemning Monsoon as one of the biggest culprit (when every excuse has exhausted blame it on “God–Varuna” – is the best adage) and had suggested prophetically that inflation will be brought down to around 6% before the end of the year [2010], but did not have any foreseeable technically viable Road Map either ‘A’ or ‘B’ in place to demonstrate their tall claims. The roles of others–who are also partners in the overall Supply Chain Management (SCM) in more than dozen other states and are condemning high price rise at the top of their voice, and recently executed “Bharat Bandh” successfully…!?, reasoning steep government expenditures being the cause…, were also totally confused and wanting, and don’t have any viable alternative techno–political solutions either.
It’s high time that holistic solutions to these problems, like addressing SCM relating to agriculture – cultivation, production, storage and distribution, harnessing nexus of cartelization…; are genuinely well thought-out ‘jointly’ by all on long term basis and implemented at the earliest to ameliorate the sufferings of the “Aam Admi”.
- In: Corporate Governance | Ethics | Fraud
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Securities and Exchange Board of India (SEBI) has issued Master Circular on Anti Money Laundering (AML) and Combating Financing of Terrorism (CFT) – Obligations of Intermediaries under the Prevention of Money Laundering Act, 2002 and Rules Framed there under which consolidates all the requirements/instructions issued by SEBI with regard to AML/CFT. This Circular is being issued to all the intermediaries and shall also apply to their branches and subsidiaries located abroad.
It’s available at the SEBI’s web site @ Click here.
This Master Circular is divided into two parts; the first part is an overview on the background and essential principles that concern combating money laundering (ML) and terrorist financing (TF). The second part provides a detailed account of the procedures and obligations to be followed by all registered intermediaries to ensure compliance with AML/CFT directives.
Master Circular: http://www.sebi.gov.in/circulars/2010/cirisdaml2010.pdf
The most extensive delineation of board responsibilities has been enumerated in the Canadian guidelines, which has identified beside other components the following two specific components:
1. Adoption of a strategy planning process.
2. Management of Risk.
The role of the board of directors in ERM oversight includes:
1. Determining a risk-adjusted corporate strategy and adequate metrics to track executive performance in the pursuit of such a strategy,
2. Approving a risk inventory and fundamental ERM parameters (such as risk measurements, risk appetite and tolerance levels) as part of the annual business plan.
3. Being about the effectiveness of designed procedures.
In determining its risk oversight structure, the board should conduct a preliminary analysis of corporate governance practices. Specifically, it should consider the following issues:
1. The independence, professional expertise, and time availability of board members; 2. The assignment of board oversight functions to specialized board committees; and 3. The quality of the information flow between board members and management.
Delegating Responsibilities within the Organization: A growing number of companies have been assigning such leadership responsibilities to a dedicated chief risk officer (CRO). But companies should assess the time availability of existing executive positions, evaluate skills and expertise needed, determine the need to promote visibility and authority, and weigh a number of other issues before deciding whether such a position will prove a valuable contribution to the ERM efforts.
From the foregoing it is essential that, the board cannot and should not be involved in actual day-to-day risk management. Directors should instead, through their risk oversight role, satisfy themselves that the risk management processes designed and implemented by executives and risk managers are adapted to the board’s corporate strategy and are functioning as directed, and that necessary steps are taken to foster a culture of risk-adjusted decision-making throughout the organization. Through its oversight role, the board can send a message to the company’s management and employees that corporate risk management is not an impediment to the conduct of business nor a mere supplement to a firm’s overall compliance program but is instead an integral component of the firm’s corporate strategy, culture and value generation process.
Given the increased significance of the risk oversight role in the current risk environment, a company’s risk management system should function to bring to the board’s attention the company’s most material risks and permit the board to understand and evaluate how these risks interrelate, how they affect the company, and how management addresses these risks. It is important for directors to have the experience, training and knowledge of the business necessary for making a meaningful assessment of the risks that the company faces, however complicated they may be.
The board should also consider the best organizational structure to give risk oversight sufficient attention at the board level. In some of the companies, this may include creating a separate risk management committee or subcommittee. In others, it may be sufficient to have the review of risk management as a dedicated, periodic agenda item for an existing committee such as the audit committee, in addition to periodic review at the full board level. While no “one size fits all” it is important that risk management be a priority and that a system for risk oversight appropriate to the company be put in place.
Right to Information act – a best thing that has ever happened to, we Indians: Let us not be frivolous or mischievous in our deeds to damage it irreversibly forever.
I recently had the first hand and my first ever experience – how it (RTI Act) had punctured the imperious, macho and Machiavellians attitudes of the Navratna PSU company’s PIO & the HR head – in fact the whole ‘Board of Directors’ were over zealously supporting it behind the scene. One of the incidences, during these proceedings, which touched the most, was a ‘Muslim Judge’ using Hindu sentiments to make the message through to these authoritative and impervious establishment who audaciously questioned the simple and legitimate request for the information “… [Appellant] will tear it and immerse it in the ‘Ganges’…” – a most sacred river to us Hindus. Every Hindu desires that his/ her ashes after the cremations are immersed in the holy river “Ganges” to attain salvation – “Moksha”. The avoidance of logical and reasoned justification often comes from the top. Reticence has always appealed to those who are powerful public authority, usually unwilling to scrutinize the basis of their policies essentially fearing exposures and later ridiculed for being subverting rights and liberties of others. It is hoped that these Public Authorities would get encouraged from this example, amend their arbitrariness and condemnable actions.
The judgment elated a great satisfaction and happiness for its ramification to advance justice to the whole community of employees of government – state as well as central and the PSUs; though initially it was being pursued solely for the purpose of self interest to unearth an information – to know what really had conspired to inflict injustice and discrimination. The real motivation was the inequities and the subjugations suffered, consequently a good reason to resent with a perceivable remediable injustice, with an exemplary mechanism – the RTI Act, already in place to overcome this injustice.
It is also desirous that the Act is protected from being “tinkered” by vested interests. In the recent past, there had been a vigorous campaign of “Tinkering and diluting” the Act by these interests, which was very timely put to a stop by the Hon’ble Chairperson of UPA Madam Sonia Gandhi, who wrote back to Dr. Man Mohan Singh the Hon’ble Prime Minister of India on 10th November 2009:
“The RTI Act… as one of the most effective pieces of legislation, as instrument that has empowered people and made government more responsive… Much has been achieved in these initial years and while there are still problems of implementations, RTI has begun to change the lives of our people and the ways of governance in the country. It will of course take time before the momentum generated by the Acts makes for greater transparency and accountability in the structure of the government… It is important, therefore, that we adhere to its original aims and refrain from accepting or introducing changes in the legislations on the way it is implemented that would dilute its purpose”
It is imperative that the short comings like lack of public awareness about the RTI Act; untrained information officers/appellant authorities, harassment, intimidation, threatening and killing of RTI activists be addressed immediately by our law makers whole heartedly.
The Landmark Decision is available at the Central Information Commissioners (CIC) web site @ http://rti.india.gov.in/cic_decisions/5973_IC_A__2010_M_42690.pdf
Sustainable Development and peaceful movement of Dongria Kondhs of ‘Niyamgiri’
Posted on: August 28, 2010
Sustainable Development of Metallurgical Industries in India
It was heartening to read the news article in “The Economic Times” dated 24th August 2010 titled “Jairam puts last nail in Vedanta’s India plan”.
It’s an excellent example of Good governance on the part of the MoEF and should act as a deterrent for all others who had been taking, all these years, government clearances as fait accompli and should bring in radical changes in the[ir] company’s attitudes, thinking and rightful actions towards sustainable developments in the country. The companies need to shun away from the unregulated and unbridled greed for material gains at the cost of damaging of our eco-system irreversibly for the next generation to suffer and curse our generations.
This should now teach the[m] company a lesson and prevent them from further damage to our environment, by way of polluting our aquifers, flora and fauna from contamination from Cadmium, Mercury, Nickel, Cobalt, Selenium, Vanadium and other heavy metals, (it need not have to be elaborated here on the harmful effects of these metals, on the ecology and on the human beings, which is already well documented); normally co-occur and get simultaneously extracted in varying proportions along with the mining, mineral dressing and extraction of Zinc, Lead, Copper, Aluminium, etc., and are being discharged unregulated to our ecological system.
The Environment Ministry, has taken a landmark step forward in raising the bar for metallurgical, chemical, e-waste, and all other highly polluting industries to take up sustainability development as a way of life and there are no – any short cuts. This movement of tribal from Niyamgiri, has demonstrated that power is not back with the tribal, it has been taken back by them. The lessons from this peaceful Dongria Kondhs movement should encourage Vedanta to revisit some of their Sidhantas – and align with the “Ten Principles of UN Global Compact”.
It is heartening to know from the recent news (To read the full news article in the Economic Times dated 24th August 2010 Click Here : http://economictimes.indiatimes.com/markets/indices–regulation/SEBI-proposal-Independent-directors-face-board-cap/articleshow/6424040.cms ) that, SEBI is considering a proposal to limit the number of company boards that an independent director can sit on. The proposal aims to ensure that independent directors get enough time to analyze the agenda of the board meetings and make meaningful contributions during board meetings. In order to give enough attention to all business details, independent directors do need a considerable amount of time.
On going through some of the Director’s report on the Corporate Governance in Annual Reports of various Companies, like Biocon, L&T,etc., it is really shocking to see that some of the non- executive independent directors in these companies holds the post of directorship – Chairmanship / Alternate Non-executive of around ~50 companies, including, listed, unlisted and foreign companies.
Recently issued Voluntary guidelines by the Ministry of Corporate Affairs say that an independent director should not serve on the boards of more than seven listed companies. However, SEBI should consider including unlisted, holding, foreign and other companies as well in this numbers so as to increase effective engagement of IDs on the Boards.
It would be unbelievable that such director could judiciously provide time to even read the board meeting agenda papers, what to talk about the active role in discharging effectively his or her foremost duties towards the minority shareholders like us.
Assuming, with no unexpected crises, active board service, including preparation, takes up to on a conservative estimates of two and half times the number of hours spent at a meeting. So if, ideally a board and its committees meet six times a year for an average length of six hours, board business occupies 10 to 11.25 days of an individual director’s in a year per company. Now, one can easily calculate how many days will be required to be spent by an individual director, who is on the board of around fifty companies.
It may not be out of place to mention here that in each and every exceptional case of such type, the regulator need not be blamed, it is therefore, essential that the director’s appointment committee need to thoroughly evaluate all these factors before putting up the proposal for appointment finally by the shareholders. Shareholders, should also help themselves by ensuring that they question their directors at the AGM or in between, on the nature of behaviors in the boardroom and otherwise.
Ethical and tough directors will stand up for what is right. Unethical or weak directors will cave in to pressure and may do the wrong thing or simply turn a blind eye whilst others do the wrong things. The independent director must be sufficiently strong minded to withstand pressure, either overt or covert, to conform to the wishes of others. These are the ones, who are truthful, would stand up and face the corporate world; they are really not “qualified” to take up these roles.
It is impossible for regulators to regulate so that only ethical and strong people get onto boards. It is therefore, pertinent that the ethical side of directorship needs to be recognized and managed far more than it currently is. It is observed that things are improving slowly, but there is still much to do to get the entire deadwood cut out of the boardrooms.
- In: Blood Diamonds | Conflict Minerals | Corporate Governance | CSR | Dodd- Frank Act | Ethics | Fraud | SEC | Whistle Blower | Whistle Blowing
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There was an eruption of financial crisis in 2007-08, which originated in the USA and spread to other advanced economies. The financial crisis has seriously affected the growth prospects of emerging market and developing economies, also resulting in recession or slows down in growth in almost all economies of the world. Many of them are still struggling to roll back on tracks, despite the efforts of the central banks and governments of these countries. US had faced the worst financial crisis since the Great Depression of 1930. Millions had lost their jobs, businesses had failed, housing prices had dropped, and savings were wiped out.
The current economic crisis has eroded public and investor confidence in the governance. American corporations and the government had to take swift action to restore the public trust and to restore responsibility and accountability in their financial system to give them confidence that there is a system in place that works for and protects them.
With the foregoing premises in mind, the Obama government took various initiatives and recently, U.S. House and Senate lawmakers released the final text of sweeping financial regulatory legislation which has been dubbed the “Dodd-Frank Wall Street Reform and Consumer Protection Act” after the chief negotiators for each chamber, Senator Christopher Dodd and Rep. Barney Frank.
The Wall Street Reform and Consumer Protection Act include the following major provisions:
“Consumer Protections: Creates the Consumer Financial Protection Agency (CFPA), a new, independent federal agency solely devoted to protecting Americans from unfair and abusive financial products and services.
Financial Stability Council: Creates an inter-agency oversight council that will identify and regulate financial firms that are so large, interconnected, or risky that their collapse would put the entire financial system at risk. These systemically risky firms will be subject to heightened oversight, standards, and regulation.
Dissolution Authority and Ending “Too Big to Fail”: Establishes an orderly process for dismantling large, failing financial institutions like AIG or Lehman Brothers in a way that ends bailouts, protects taxpayers, and prevents contagion to the rest of the financial system.
Executive Compensation: Gives shareholders a “say on pay” – an advisory vote on pay practices including executive compensation and golden parachutes. It also enables regulators to ban inappropriate or imprudently risky compensation practices, and it requires financial firms to disclose any compensation structures that include incentive-based elements.
Investor Protections: Strengthens the SEC’s powers so that it can better protect investors and regulate the nation’s securities markets. It responds to the failures to detect the Madoff and Stanford Financial frauds by ordering a study of the entire securities industry that will identify needed reforms and force the SEC and other entities to further improve investor protection.
Reward Tipsters and Protect Whistleblowers: A new Investor Protection Fund will create incentives to identify wrongdoing in the securities markets and reward individuals whose information leads to successful enforcement actions. This fund will also pay for educational initiatives designed to help investors protect themselves against securities fraud. Whistleblowers will be better protected from retaliation as well.
Regulation of Derivatives: Regulates, for the first time ever, the over-the-counter (OTC) derivatives marketplace. Under the bill, all standardized swap transactions between dealers and “major swap participants” would have to be cleared and traded on an exchange or electronic platform. The bill defines a major swap participant as anyone that maintains a substantial net position in swaps, exclusive of hedging for commercial risk, or whose positions create such significant exposure to others that it requires monitoring.
Mortgage Reform and Anti-Predatory Lending: Would incorporate the tough mortgage reform and anti-predatory lending bill the House passed earlier this year. The legislation outlaws many of the egregious industry practices that marked the subprime lending boom, and it would ensure that mortgage lenders make loans that benefit the consumer. It would establish a simple standard for all home loans: institutions must ensure that borrowers can repay the loans they are sold.
Reform of Credit Rating Agencies: Addresses the role that credit rating agencies played in the economic crisis, and takes strong steps to reduce conflicts of interest, reduce market reliance on credit rating agencies, and impose a liability standard on the agencies.
Hedge Fund, Private Equity and Private Pools of Capital Registration: Fills a regulatory hole that allows hedge funds and their advisors to escape any and all regulation. This bill requires almost all advisers to private pools of capital to register with the SEC, and they will be subject to systemic risk regulation by the Financial Stability regulator.
Office of Insurance: Creates a Federal Insurance Office that will monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis and undermine the entire financial system.”
“After losing eight million jobs and trillions of dollars in wealth, the American people are finally getting the Wall Street reform they have demanded from Washington,” the Congressman Tim Bishop voted the bill and said. “Reforming financial services is a critical step in our ongoing effort to create jobs and build a sound economy that rewards healthy risk-taking and long-term growth.”
The Act was passed by a bipartisan vote of 237 to 192. The legislation is now under consideration in the Senate and it is hoped that the stage is all set for the Senate to clear it.
Click Here for resource to the Wall Street Reforms and Consumer Protections Act: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/Financial_Regulatory_Reform062910.html
Keywords: Financial Reforms, Create a Sound Economic Foundation to Grow Jobs, Protect Consumers, Rein in Wall Street, End Too Big to Fail, Prevent Another Financial Crisis
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