Citizens' Issues
Bangalore Stock Exchange to shut down after SEBI 'exit' order

The Bangalore Stock Exchange becomes the seventh stock exchange to exit operations under the SEBI policy dealing with defunct or sick exchanges

 

Securities and Exchange Board of India today passed exit orders, enabling the winding up of the Bangalore Stock Exchange (BgSE). 
 
“In terms of clause 2.2 of the Exit Circular, 2012, a stock exchange, where the annual trading turnover on its platform is less than 1,000 crore, can apply to SEBI for voluntary surrender of recognition and exit, at any time before the expiry of two years from the date of issuance of the said circular,” the order quoted.
 
The BgSE reportedly earned a mere Rs5.45 crore in income last financial year. 
 
Following an Annual General Body Meeting on 21 September 2013, the BgSE made a request to SEBI to exit as a stock exchange. SEBI through its order approved the exit while listing down the guidelines and conditions to be adhered to in terms of the exit process.
 
“Further, the Income Tax Authorities, Ministry of Corporate Affairs and the State Government of Karnataka are being intimated about the exit of BgSE, for appropriate action at their end,” SEBI said in a release.
 
The BgSE was set up in 1957 and gained permanent recognition to operate as an exchange in 1983. However, like many other exchanges including the Interconnected Exchange, the BgSE had little activity for long periods. 
 
The complete withdrawal of trading on most stock exchanges came with the National Stock Exchange cornering most of their market share and going on to become the largest by volume in many asset segments. Finally, with online trading and software from various brokerages freely available, local stock exchanges have become redundant and most trades pass through the two major exchanges.

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Traders to intensify fight against online stores

According to CAIT, brick and mortar shops are subject to various acts, laws, rules and regulations whereas online retail business do not have any specified rules and regulations, and thus are taking undue advantage 

 

The Confederation of All India Traders (CAIT) has decided to intensify their fight against online shopping portals like Flipkart, Snapdeal, Amazon and eBay. As part of their fight, the traders’ body has sent letters to all chief ministers, seeking a meeting to explain the revenue loss being suffered by the states.
 
"State Governments all over the Country are suffering significant revenue loss on account of consumption of goods in respective States purchased through online retail platform. Such business of online retail reflects abuse of dominance, predatory pricing, avoidance of tax liabilities, dubious funding structure and unhealthy business practices and in many cases contravention of FDI policy of the Union Government," CAIT said in the letter.
 
According to the traders’ body, brick and mortar shops are subject to various acts, laws, rules and regulations whereas online retail businesses do not have any specified rules and regulations, which give them more advantage to play business as per their own will and wishes.
 
Praveen Khandelwal, National Secretary General of CAIT said, retail traders, except online retailers are mandated to conduct business under 15 different acts. This includes Value Added Tax (VAT) Act, Central Sales Tax (CST) Act, Legal Metrology (Packaging Commodity) Act, Central Excise Act, State Excise Act, Provident Fund Act, Minimum Wages Act, ESI & Gratuity Act, Shop and Establishment Act, Consumer Protection Act, Service Tax and Cess, Income Tax Act, Essential Commodities Act, Food Safety and Standards Act and Entry Tax.
 
"On the other hand, online retailers are absolved of most of the above Acts, Taxes and paper formalities, which certainly gives them an advantageous position in comparison to offline trade and thus creating an uneven level playing field," he said.
 
According to CAIT, taking advantage of the situation, online retailers are selling goods much below the actual cost under the guise of consumer benefit. It said, "In order to control and dominate the market, they (online retailers) are selling goods even at suffering the losses. But once they are able to monopolize their business, they will certainly exploit consumers by charging high rates due to absence of any competition. We have living examples of travel and book business, which was conducted by large number of people in the country few years back and now the whole business is being controlled and monopolised by few online platforms. Such a scenario is certainly against the interests of consumers and established brick and mortar shops."
 
"Under the circumstances and keeping into consideration the protection of interests of the consumers and making the competition between equals, we urge that specified rules and regulations must be framed for conducting business activities on e-commerce portals,” the traders’ body said.

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COMMENTS

K M Rao

3 years ago

On a macro scale, is not e-commerce a welcome change to bring down the over all cost? Why should we feed all these middlemen / traders/ govt inspectors? May be the Govt. should think of imposing a small tax to make good the loss to the exchequer. Let the traders find some new occupation!

Kiran Aggarwal

3 years ago

the brick and mortal stores r also
extra smart !!
I still have memories of being
- given bad service
and excuses by
Brick n mortal stores.

Now when they are made to bleed by e- commerce - they are remembering all kinds 0f rules.

Well If rules give the industry a structure it is good .
I still like to buy books from stores but They have a problem
- They are profiteering in mindset
and less on value for money .
That should be changed .
Like Home delivery / Flat discount on new titles / Magazine options
- I do not find Moneylife and other good magazines bcoz book store is not open to arrange it .

Vinita Deshmukh gets the 'Laadli Award' for gender sensitivity

Moneylife's consulting editor Vinita Deshmukh won this year’s Laadli Award for her articles on Pune constable Jayashree Mane, who was assaulted by her senior for using RTI

 

Vinita Deshmukh, the consulting editor of Moneylife was Wednesday felicitated with the Laadli Media and Advertising Award for Gender Sensitivity from the western region for 2013-14. She received the Award for her story on a woman constable from Pune who was assaulted for using the Right to Information (RTI) Act. (Read: Pune constable Jayashree Mane, an RTI user, slapped by her senior )
 
The Laadli Media and Advertising Awards for Gender Sensitivity highlights, acknowledge and celebrate the commendable efforts by various media at providing gender-just perspectives, portrayals and analysis. Vinita is among the 27 journalists selected by the jury from 588 entries received from western region.
 
Dr AL Sharada, director of Population First, said, "Many stories are written by journalists but Vinita went beyond news column. She took up the cudgels to bring justice to the lady cop who was assaulted for using RTI". Laadli is a campaign launched by Population First in 2005 to address the mindsets that discriminate against women, promote inequalities and justify gender-based violence.
 
Vinita Deshmukh said, "The fight for the woman cop is far from over as Pune Police has slapped a departmental enquiry on the constable for approaching media. I, along with RTI activists from Pune are firmly standing behind her."
 
This year’s awardees include, Femina magazine, Kunal Rajnikant Purohit from Hindustan Times, Shwetha Kannan (Afternoon Despatch & Courier), Gujarat Guardian, Himmat Kataria (Abhiyaan), Kamini Sanghvi (Mumbai Samachar), Ketan Dave (Nav Gujarat Samay), Kutch Mitra Daily, Bhuvanesh Pandya (Rajasthan Patrika), Suman Kachhawa and Varsha Mirza (Daily News), Mohan Maruti Maskar-Patil (Lokmat), Mrinmayee Ranade (MADHURIMA and Divya Marathi), Vrushali Magdum, Tara Kaushal (Governancenow.in), Dr Abha Sharma (bbc.co.uk/hindi), 94.3 My FM, Vinayak Gaikwad, Priyanka Desai and Alka Dhupkar (IBN Lokmat).
 
The winners in Special Jury Citation include, Sukhada Tatke (The Hindu), Marisha Shah (Nav Gujarat Samay), Raj Bhaskar (Sadhana Magazine), Hamari Awaaz (Vividha), Dipti Raut and Priyanka Desai (IBN Lokmat). For social awareness, Aditi Desai from Gujarati theatre has been selected for a Special Award.
 
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