Bourses go slow on pay norms for executives

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MUMBAI:Three months after market regulator Sebi came out with a notification on the salaries of stock exchange officials, progress has been slow on this front at the bourses. Thanks to the recommendations of the Bimal Jalan committee on the ownership and governance of stock exchanges, the Sebi board had adopted on April 2 several of the panel`s proposals, including putting in place a remuneration committee at every stock exchange with public interest directors (independent directors) dominating such committees.

Even after the remuneration committee sets the salary packages, Sebi will still have the final say on the same.

Lawyers point out that Sebi`s new rules includes a `claw-back` clause, which under special situations can force an official to return part or whole of the salary drawn from the exchange.