Action by SEBI under ordinance remains valid, says Meena

Any action initiated by SEBI as per the ordinance issued last year remains valid and the consequent effects of the same will continue, says the minister

Any actions taken by market regulator Securities and Exchange Board of India (SEBI) under the government ordinance against capital market manipulations, will remain valid and the consequent effects of the same will continue, Parliament was informed on Tuesday.


Last year, President Pranab Mukherjee had promulgated an ordinance amending the securities law that provided SEBI with more powers to check fraudulent investment schemes and other market manipulations.


However, the ordinance had lapsed on 16 January 2014 as the Bill in this regard could not be passed in Parliament.


"An ordinance promulgated by the President is of the same force and effect as an Act made by the Parliament," minister of state for finance Namo Narain Meena said in written reply to the Rajya Sabha.


"Therefore, any action initiated as per the ordinance issued remains valid and the consequent effects of the same will continue," he added.


The Securities Laws (Amendment) Ordinance, 2013, was promulgated in July, and for the second time in September.


As per the minister, SEBI had issued norms under the ordinance related to collective investment schemes (CIS), procedure for search and seizure as well as settlement of administrative and civil proceedings.


In his interim budget speech in the Parliament, Finance Minister P Chidambaram had regretted the non-passage of the Securities Laws Amendment Bill.


To a separate query on whether there was a delay in action against illicit CIS by Saradha Realty India from SEBI, Meena gave out the details of the procedures followed by SEBI since 2010 when the Economic Offences Investigation (EOW) Cell had informed it about the fund raising activities by the company.


Meena said: "As per the procedure in quasi-judicial proceedings, any party to be proceeded against has to be served with a show cause notice and be given a fair and reasonable opportunity before an adverse order is passed in accordance with the principles of natural justice since the orders of SEBI are subject to judicial review."


After being informed about the CIS activities of Saradha Realty by EOW Cell, SEBI had on various occasions in 2010 written to Saradha Realty seeking details of its schemes and funds raised from investors, as per the minister's reply.


The regulator had issued a show cause notice to Saradha Realty in December 2011 based on prima facie evidence of unauthorised CIS activities by the company.


Subsequently, as Saradha Realty failed to furnish documents with SEBI, among others, the market regulator had issued orders against the company on 23 April 2013.


Moneylife Quiz -174





Premium Content
Monthly Digital Access


Already A Subscriber?
Yearly Digital+Print Access


Moneylife Magazine Subscriber or MSSN member?

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
NPAs of 40 listed banks rise 35% to over Rs2.4 lakh crore in Q3

According to, almost 11 banks out of 40 posted a 50% plus growth in their gross NPAs during the nine months that ended on 31 December 2013

Gross non-performing assets (NPAs) or bad loans of 40 listed banks increased 35.2% or by Rs63,386 crore to over Rs2.4 lakh crore during the December 2013 quarter. This jump of 35.2% was much higher than the 27% witnessed during the first six months of financial year 2013-14, says


According to a study conducted by the portal, 10 out of the 40 listed banks accounted for nearly 70% of the total gross NPAs of Rs2.43 lakh crore. State Bank of India (SBI) at 28% or Rs67,799 crore has the largest share in the total gross NPAs of the 40 listed banks, followed by Punjab National Bank (PNB) with 7% share at Rs16,596 crore. Bank of Baroda and Central Bank of India, both have 5% share each in the NPAs.


As of 31 December 2013, Bank of Maharashtra posted the largest increase in gross NPAs of 209% to Rs3,516 crore from Rs1,138 crore as on March 2013.  United Bank of India also reported a 188% jump in its gross NPAs at Rs8,546 crore at end of December quarter. Almost 11 banks posted a 50% plus growth in their gross NPAs for the nine months ending 31 December 2013, said.

"The fourth quarter of 2013-14 will continue to be bad for banks on the NPAs front, but most banks will resort to higher levels of provisioning so as to bring down their net NPA levels. The first quarter of next financial year too will continue to be bad for banks with regard to NPAs. The high concentration of banks’ debt to the top 50-100 corporates is also a major concern area. A clearer picture about the future of the Indian economy will emerge post the central elections due in May," said Devendra K Jain, chairman and managing director of Atishya Group that owns


The growth in net NPAs at 49% for the nine months ended 31 December 2013 as against a 38% rise in the first six months of 2013-14 is also alarming. Net NPAs have gone up to Rs1.38 lakh crore as of December end from Rs93,116 crore at end of March 2013.


"There is no respite for banks in India from the onslaught of higher interest rates and slowdown in the Indian economy leading to further increase in loans turning bad from corporate as well as retail segments,” Jain added. said gross NPAs of listed banks have doubled since September 2011; while net NPAs have risen by 2.4 times or 140% during the same period.



We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In


The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)