A two-member Supreme Court bench, however, agreed to hear their petition challenging the jurisdiction of the special court to hear the case on the ground that corruption charges have not been slapped on them like other accused in the multi-crore rupee scam
New Delhi: In a setback to the Essar group and Loop Telecom, the Supreme Court today refused to grant interim stay on the summons issued against them and their officials by a special Central Bureau of Investigation (CBI) court to appear before it on 22nd February for their alleged involvement in a second generation (2G) spectrum scam offshoot case, reports PTI.
A bench of justices GS Singhvi and SJ Mukhopadhaya, however, agreed to hear their petition challenging the jurisdiction of the special court to hear the case on the ground that corruption charges have not been slapped on them like other accused in the multi-crore rupee scam.
“We would quash the proceedings if we come to the conclusion that the court has no jurisdiction to hear the case,” the bench said.
The bench also issued a notice to CBI and other parties and asked them to file their responses within two weeks on the companies’ plea.
The two telecom firms, in their petitions, had said they have been charge-sheeted under Section 420 (cheating) and 120B (criminal conspiracy) of the IPC and the charges were triable by a magistrate and not by the special court constituted under the Prevention of Corruption Act for hearing the 2G case.
Other accused named in the third charge-sheet are Essar group promoters Anshuman and Ravi Ruia along with Loop Telecom promoters Kiran Khaitan, her husband I P Khaitan and Essar Group director (strategy and planning) Vikash Saraf.
They have been asked to appear before special CBI judge OP Saini on 22nd February.
The companies and their promoters have denied any involvement in the scam.
Dhanalaxmi Bank is in the news for wrong reasons. First, employees union accused the lender of manipulating of accounts and later its MD & CEO resigned due to serious differences with other Board members
The already troubled Dhanlaxmi Bank faced another blow after it reported a net loss of Rs36.87 crore for the quarter ending December 2011 compared with a net profit of Rs7.26 crore a year ago period.
In a filling to the Bombay Stock Exchange (BSE), the Kerala-based lender said that capital adequacy ratio for the third quarter of 2011 stood at 9.88% from 13.39% a year ago. The non-performing asset also fell to Rs33.82 crore from Rs40.42 crore in December 2010.
The bank has been the centre of controversy after its union accusing it of manipulating the accounts. Recently the managing director and chief operating officer (CEO) Amitabh Chaturvedi resigned from the bank over his differences with the management.
Moneylife was the first one to report the All-India Bank Officers Confederation (AIBOC) alleged that the bank has manipulated accounts and provisioning, has a mismatch in asset-liability resources, maintains poor capital adequacy ratio and has huge dependence on call money borrowing. It has also accused the bank for ignoring social banking and financial inclusion. Subsequently, last year in November, the RBI conducted an inspection and issued a 15-point Monitorable Action Plan (MAP) to Dhanlaxmi Bank.
Recently, the Dhanlaxmi Bank Officers Organisation (DBOO), the trade union of the bank has hit out hard on him the recently resigned managing director (MD) and chief executive officer (CEO) Amitabh Chaturvedi and its management for the poor plight of the bank and meticulously hiding all the facts from the public. In a circular issued, DBOO said that the bank which booked profit of Rs57 crore in 2009, is about to show dismal result for the December 2011 quarter.
Goldman Sachs plans to launch an equity diversified scheme which offers nothing different from the 216 similar schemes which are currently available in the market
Goldman Sachs Mutual Fund which took over Benchmark Mutual Fund last year plans to launch an equity diversified scheme—Goldman Sachs India Equity Fund according to the offer document filed with the Securities and Exchange Board of India (SEBI). This would be the first diversified equity scheme launched by the mutual fund company. The new fund would join the list of three other equity-oriented schemes managed by the company which include Goldman Sachs Derivative Fund, Goldman Sachs Equity & Derivative Opportunities Fund and an index fund— Goldman Sachs S&P 500. These funds were part of Benchmark Mutual Fund. The India Equity fund will invest greater than 80% of its assets in equity and equity related securities and the remaining in debt securities and money market instruments. The performance of the scheme would be benchmarked against the S&P 500 index.
The new scheme will add on to the list of 200 plus equity diversified schemes already available in the market and this is excluding index funds and sector funds. The holdings of many equity diversified funds are remarkably similar. Moneylife did an analysis of equity diversified funds that have declared their holding in December 2011. 207 funds that declared their holding invested in a total of just 637 stocks. 43 of these stocks are repeated in 50 or more schemes. Reduce the number of stocks and you will find that 10 stocks are present in more than 100 schemes. ICICI Bank is present in around 145 schemes and Reliance Industries is present in around 139 schemes. Around 46 schemes invest in a same set of 10 stocks and around 175 schemes pick from a set of just 20 stocks.
However, even with selection of the same stocks, what separates the best from the rest is proper market timing and asset allocation, which only a few fund managers possess. We all know that investing in equities is risky, but investing in the wrong fund can be even worse. Therefore it is essential to analyse the portfolio of the equity fund before investing and not to forget the long-term past performance of the fund.
As for Goldman Sachs, there is no long-term history of fund management company in India, managing money for retail investors. This fund comes under the new management of Benchmark altogether. The only other equity oriented funds that are managed by the company include two arbitrage funds and one index fund, all of which were launched by Benchmark Mutual Fund. All the three funds have underperformed the benchmark in the last one-year, two-year and three-year period ending 10 February 2012. Prashant Khemka, chief investment officer (active equity), would be the new fund manager and this would be the first scheme managed by him. He comes in with 14 years of experience.
Though Goldman Sachs is a big name in global investment banking, securities and investment management worldwide, one should be wary before investing. As in a recent study conducted by Moneylife showed that many big names in the industry owned funds that turned out to be the worst performers (Read: Equity Mutual Funds to avoid at all costs).
We would suggest invest in funds with a proven track record through a systematic investing plan. Investing in this fund can wait.