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SC rejects Pyramid Saimira's plea to lift trading ban

The apex court dismissed the company’s plea for lifting the 7-year ban from accessing the market, which was imposed by SEBI last November following irregularities in the company's IPO in 2006

The Supreme Court (SC) today dismissed a petition by Madras-based entertainment company, Pyramid Saimira, challenging a seven-year trading ban imposed on it by market regulator Securities and Exchange Board of India (SEBI), reports PTI.

The bench, headed by chief justice S H Kapadia, dismissed the petition filed by the company, PS Theatre, requesting the court to lift the seven-year ban from accessing the market, which was imposed by SEBI last November following irregularities in the company's initial public offering (IPO) in 2006.

"We do not want such firms to continue... in the matter of fraud, we do not do anything," the bench said while declining the company's plea.

The company had challenged the order of the securities appellate tribunal, which had on 10 November, 2009, upheld the SEBI order.
 

(Read more about Pyramid Saimira... http://www.moneylife.in/article/8/4970.html , http://www.moneylife.in/article/8/4649.html and http://www.moneylife.in/article/3724.html)
 

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COMMENTS

padmanabhan s

6 years ago

What about the small investors who had
invested in the PSTL and is there any
way out for those existing investors
from the promoters' clutches? Let ROC/SEBI/GOI do something to alleviate
sufferings whose investments were locked in the company and dwindling
day after day.

After mutual funds and ULIPs, will NPS get a makeover?

The pension regulator has suddenly initiated a consultation process with market participants for the formation of new administrative guidelines for the New Pension Scheme. Does it set the stage for a makeover of the NPS?

After the mutual fund and insurance regulators have done their bit for investors, is it now time for the pension regulator to leave its mark? The Pension Fund Regulatory and Development Authority (PFRDA) which got a new chairman in Yogesh Agarwal (former chairman of IDBI), on 7th June, has invited comments from various market participants and the public at large on the first draft of administrative guidelines proposed to be issued for the New Pension Scheme (NPS). These include guidelines for the Central Recordkeeping Agency, Custodian and Depository Participant, fees and charges, New Pension System Trust, Points of Presence and the Subscribers Education and Protection Fund. The guidelines would be further reviewed in light of the comments received and any other developments.

Commenting on the purpose for bringing out new guidelines, a PFRDA official said, "We want to know what we have missed out in the past and enhance the scope of the scheme in terms of regulation. We wish to provide sufficient opportunity to the public to participate in this process. We expect to benefit from the comments received from various market participants in this regard. Once this is completed, it will offer guidance to the participants."

Rani Nair, executive director of PFRDA said, "We have invited comments to see whether there is anything which has not been covered yet. As we are moving on, we are bringing various value-plus services for our customers. This is a part of such services. We are putting in place some legally enforceable guidelines for various market intermediaries to ensure that customers are protected and not misled. Customers will be made aware of the responsibilities of different intermediaries, once the guidelines are in place." Asked whether any major policy shifts are being planned, she said that the basic architecture for the NPS would remain the same.

NPS allows one to save regularly in a scheme until the age of 60. The scheme mixes investment in safe debt and equity stocks (of Sensex and Nifty) in different proportions. However, NPS has so far received a very poor response from the general public. There is nobody to explain and sell the scheme, since there is no commission involved in selling it.

The PFRDA may not be willing to admit it, but some sweeping changes seem to be on the cards for the nascent pension scheme. Pension fund managers (PFMs) have sought major changes in the fee structure. According to a media report, in a recent meeting with the PFRDA chairman, the PFMs complained that the low management fees (0.0009% of assets under management) are not healthy for the system. It is another matter that the PFMs themselves bid for these prices and are now crying wolf.

The new chairman seems willing to look at the NPS afresh. He is on a drive to collect feedback from the participants so as to make NPS more popular. After mutual funds and Unit-linked Insurance Plans, now NPS may undergo significant change. Only, it will be in the opposite direction. While the stock market regulator has cut down on upfront commissions as incentive for mutual funds and the insurance regulator has made ULIPs cheaper by reducing incentives, PFRDA would want to do the opposite - add a bit of incentive to make NPS work.

User

COMMENTS

Abhishek Ratan

6 years ago

After the Margins cut on the Mutual funds and Ulips the market participants will definetly look into the NPS only when they get any of the benefit out of it. As a responsible advisor to the Clients it is the Responsibility of the Advisors to Look into the Portfolio of the Clients and Distributes his Investment accordingly.NPS is a major part of the Portfolio Investment but due to lack of any incentive advisors generally do not reccomend to their clients. Now as the Mutual fund and Insurance Companies have shown their cards ,it is the right time for the NPS to enter the market with a bang through the market participants by offering them at least some lucrative offers.also the PFMs shouls be remunerated appropriately to keep their morals high.

I totally agree with the norms if some monetary gains will be distruibuted to market participants then definetly pension funds will rock!!!!!

abhijeet

6 years ago

The scheme in its entirety including costs, benefits and other features needs to be made available to the target client in a simple manner. Only then will NPS succeed. Incentivising it will only lead to a vicious circle faced by the mutual fund and insurance industry.

nitin parikh

6 years ago

Its plesure that pension fund is their alon entities. how ever its slowly but in future and specially new genration effectively use the scheme

Keshav B Bhat

6 years ago

Dear all,
The reality is how ever the product may be (good or Bad), it requires to be marketed to reach and get acceptance by the enduser.
Hope the people in PFRDA, SEBI realise this insted of going for a chindi saving( sorry for the mumbai local word) in the name of giving better returns to the clients.
If the fund has to give good return the fund should get enough inflow of funds and it requires maketing and marketing can not be done by sitting in luxurious offices, it requires hardworking and devoted people or intermediatories and nobody will become intermidiatories unless the are sufficiently compansated for their work. there are good no of higfhly educated people who think paying 0.5% commission is good enough to the intermediatories in MF and they themselves shold be paid a hefty advisory fee because they sit in A/C offices and use computors and use latest software to produce financial planing without taking any responsibility of anything.
The actual facts can be seen by the current state of MF industry.
The earliest they open their eyes the Better.
Regards
Keshav B Bhat

Roopsingh

6 years ago

This article clearly proves my earlier stand stated many times earlier that our Govt is greedy of peoples money by all hooks and crooks-firstly they tried to curtail growth of MF by all crooked means which had become most popular in shortest span-then they took ULIPs-FM even put a 'carrot'' of rs 1000 per annum as extra payment(from tax payers pocket obviously)and finally DTC step-which will make EET for all options except NPS which will be EEE-
this all rubbish methods are not going to help this NPS(non performing schemes) because people will get locked their hard earned money till age of 58 years-and they would never know what could be fate of this amount-looking to stock market gambling-
just see the history in japan and hongkong-Nikke index of Japan is just between 9000 and 10000 now which was 40000 2 decades back and Hengseng is just 20000 now which was almost 38000 in 2008- and their seems no chance in future of these levels to be attained again-
our markets will perform well only for next-5-10 years-and same will be NPS-what about at age of 58 years for a person contributing from age of 30 or 40 years of age?
god save this country from corrupt politicians who have become ''vampires''of blood and flesh of common men-

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