Regulations
CIC directs SEBI to disclose penalised companies

CIC Satyananda Mishra also directed SEBI to make public statistical details of number of cases in which penalty has been imposed and the number of cases which have been closed without any penalty

 
New Delhi: The Central Information Commission has directed the Securities and Exchange Board of India (SEBI) to make public the list of companies which have been penalised by it and those which have been let off without any fine, reports PTI.
 
Chief Information Commissioner (CIC) Satyananda Mishra also directed SEBI to make public statistical details of number of cases in which penalty has been imposed and the number of cases which have been closed without any penalty.
 
Kanpur-based Right to Information (RTI) applicant Tatwesh Agarwal had sought to know details of investigations carried out by SEBI into scrips of companies during the four-year period of 2006-10.
 
SEBI refused to part with the information saying investigations were undertaken by various entities for violation of various provisions of law and the probe resulted, either in imposition of penalty or closure of the case.
 
He said such details are not maintained centrally and are scattered across case files.
SEBI said details of an individual case can be provided if the applicant gives specific details of a case.
 
“After carefully considering the facts of the case and the submissions made before us, we are of the view that the CPIO/SEBI has not made sufficient efforts to provide any information in this case. The CPIO had merely refused to disclose the information by taking recourse to the exemption provision contained in the subsection 1(h) of section eight of the Right to Information Act,” Mr Mishra said.
 
He said statistical details about the number of cases taken up for investigation during a particular year and number of cases in which any penalty was imposed or the case was closed should be available with the SEBI and should be disclosed.
 
“Apart from this, the list of entities against whom penalties have been imposed and those whose cases had been closed must be provided,” Mr Mishra said.
 

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COMMENTS

sun

4 years ago

very good decision by the CIC. the SEBI ought to disclose all the erring companies and the penalties imposed by the SEBI to them. this news should be brought to the Investing public and then only everbody know who are the real culprits. the companies simply evading all their wrong doings and with the help of officials they are covering it up.

SEBI imposes Rs1 lakh fine for synchronised trading

SEBI carried out investigation into alleged irregularity in trading in the shares of 12 entities

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs1 lakh on Sunil Kumar Mehta for alleged indulging in synchronised trading activities in shares of 12 companies including Ushdev International and Lotus Eye care Hospitals, reports PTI.
 
The alleged synchronised or circular trading in these companies happened from 1 March 2009 to 15 December 2009 on the Bombay Stock Exchange (BSE).
SEBI, in an order dated 31 August 2012, slapped Rs1 lakh fine on Sunil Kumar Mehta.
 
“In my view, the penalty imposed on the noticee (Sunil Kumar Mehta) is commensurate with the defaults committed by him,” adjudicating officer PK Kuriachen said in the order.
 
Synchronised or circular trading refers to a practice where the seller and buyer may have an understanding between them on trading of specific shares.
 
SEBI carried out investigation into alleged irregularity in trading in the shares of 12 entities—Allcargo Global Logistics, Asian Star Company, KSL & Industries, Mavens Biotech, Panoramic Universal, Rasi Electrodes, Sat Industries, Ushdev International, KBS Capital Management, Lotus Eye care Hospitals, MVL and Anil Products.
 
The probe revealed that a group of entities namely, Sunil Kumar Mehta, Manish Mathur, Bhavesh Kothari, Suresh Hanswal, Hitesh Mahendra Jain, Rakesh H Jain, Bhavesh Jain, Jitendra Kumar Jain and Hemlata Ramesh Hankare were linked with each other. They, acting in collusion, traded in the shares of the 12 companies.
 
According to the order, Mr Mehta on his own account has traded only in one scrip—Panoromic—in which he bought 1,800 shares and sold 1,600 shares.
 
“The amount of loss caused to an investor or group of investors also cannot be quantified on the basis of the available facts and data,” it added.
 
As per the order, it was alleged that Mr Mehta, acting in collusion with others, orchestrated the manipulation of trading volume and price of various scrips with the use of trading account/bank account of a number of entities (some of whom were his front entities) in violation of norms.
 

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COMMENTS

sun

4 years ago

one lakh fine!!!!!!!!!!!!!!! It is a peanut? there were circular trading taken place and the Watchdog found out and then penalized with one lakh fine. Great joke. how much monies involved in this circular trading. this is not enough. this is the weakness of our System. Now god only have to safeguard and to protect the Indian retail investors.

Karnataka in the limelight for all the wrong reasons?

While parts of Karnataka are reeling under severe drought, 14 MLAs, some accompanied by their family members, have taken an overseas “study tour” to South America!

 
Karnataka is suddenly in the news for several reasons. The first major news is the clearance received from the Supreme Court for some mining companies in ‘A’ category to recommence their operations.
 
It may be noted that Category ‘A’ mines are those where the miners have either committed no or minor illegalities during the operations; but this permission is subject to their compliance with statutory clearances such as the approvals from the mining department, environmental and pollution clearances. They would need to undertake the responsibility for proper rehabilitation and reclamation of the depleted mines in a time bound manner. Not a small order to comply, but this pronouncement is at least a great leap for the activities to recommence in Karnataka iron ore mines.
 
Due to the erratic and poor monsoon conditions in many areas of the state, which have been declared as “drought affected”, farmers have been assured of assistance.
 
It may be recalled only recently, a six-member central drought team visited affected villages, many of which are short of potable water necessitating the long three km walk to get them every day. We had also mentioned, in our earlier coverage, that the villagers have been assured of potable water supply “within a month”, though, this team chose to come to the site in a helicopter at great cost. (Farm subsidies should go to make farmers self-sufficient in the long run)
 
Farmers had also complained of fodder shortage and had sought assistance to increase the wages to Rs250 per day instead of Rs155 under the Mahatma Gandhi National Rural Employment Act.  Northing has been done or heard on this score.
 
Additionally, the farmers had also demanded waiver of loans taken from nationalized banks instead of giving crop loss compensation, for which they had already paid insurance premium for over a year.
 
A protest for non implementation of the tank filling project in Baleshwar taluka upset the farmers so much they began a fast, led by local MLA MB Patil. The farmers do not want any lip service but demand actual implementation of the promises made. They are expected to launch a fast till 10th September, after which it is likely to become indefinite fast covering neighbouring villages, as more and more farmers are expected to join this agitation.
 
In the meantime, Shobha Karadlaje, the state energy minister, has charged lukewarm response from the Union government in the allotment of coal to Karnataka’s thermal power stations. She had urged the Centre to ensure regular supply of coal to power stations at Bellary, Yadlapur and Yermaras.
 
Because of the poor monsoons, Karnataka is forced to purchase power from independent private power generators. One wonders why Karnataka has not thought of involving Neyveli Lignite Corporation of Tamil Nadu into some sort of joint venture so that an independent thermal power station be established, using lignite as fuel and supply the generated power to the southern states, bulk of which be given to Karnataka as the principal partner?  Surely such a proposal is worth investigating further, as this could be helpful to the “Southern Sisters”.
 
In the meanwhile, instead of austerity measures, and without paying heed to the entreaties of chief minister Jagdish Settar, 14 MLAs, some of whom accompanied by their family members, have taken an overseas “study tour” to South America! Times Now, which has the visuals of this luxury jaunt by the MLAs, has been telecasting the visit for more than 24 hours now. It is now clear how these MLAs know how to blow tax payers money in such overseas jaunts under the guise of undertaking a “study tour”.  Click here to watch the video.
 
Now that the documented visit has been seen on the TV by millions of voters in Karnataka, as a face-saving measure, a ‘study’ or “project visit” will have to be organized by their ‘local’ connections. It is time that the voters decide what is good for them and record a suitable welcome to the delegation when they return, by voting them out of the office!
 
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US. He can be contacted at [email protected].)
 

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