Daily Market View : A slow climb

The market has started a laboured rise subject to dips

The market made a splendid recovery today, rising from the three-month closing low witnessed on Tuesday. The strong opening by its Asian counterparts and a clutch of good corporate news kept the momentum in the positive terrain in the early session. Added to this, the positive opening in European benchmarks supported the gauges in the post-noon session, enabling them to close slightly off the day’s high. The Sensex ended the session at 16,387.84, up 365.36 points (2.28%) while the Nifty settled at 4913.05, up 106.30 points (2.21%).

Markets in Asia rebounded after a slide yesterday, as investors chose to brush aside the worries about the debt crisis in Europe and focus on economic recovery. Gains in commodity prices also supported the upmove.

Asian markets, barring the KLSE Composite, settled in the green. The Shanghai Composite rose 0.12%; the Hang Seng added 1.11%; the Jakarta Composite surged 7.27%; the Nikkei 225 advanced 0.66%; the Straits Times soared 1.71%; the Seoul Composite jumped 1.36% and the Taiwan Weighted increased 1.14%.

On the other hand, the KLSE Composite declined by 0.10%.

US markets closed marginally in the red on Tuesday despite good news from the economy. The Conference Board, based in New York, said that its Consumer Confidence Index rose to 63.3, up from a revised 57.7 reading in April, showing a rise for the third straight month. The other component of the index, which measures how shoppers feel about the economy, rose to 30.2 from 28.2.

The Dow closed lower by 22.82 points (0.23%) to 10,043.75. The Nasdaq lost 2.60 points (0.12%) to 2,210.95 and the S&P 500 closed marginally higher by 0.38 points (0.04%) at 1,074.03.

Back home, the government today decided to speed up the process for appointment of merchant bankers for its Rs40,000 crore disinvestment plan.

Appointment of market intermediaries will be taken up simultaneously with the clearance for disinvestment of stake in a public sector undertaking (PSU).

“The appointment of merchant bankers and other intermediaries will now be taken up simultaneously with the process of seeking the Cabinet Committee on Economic Affairs (CCEA) approval as soon as the minister in charge has approved the case,” the CCEA said in a statement after a meeting.

The top gainers on the Sensex included Hindalco Industries (up 7.30%), TCS (up 5.36%), Tata Motors (up 5.28%), Jaiprakash Associates (up 5.17%) and ICICI Bank (up 4.72%).

The laggards on the benchmark were Grasim Industries (down 20.52%), Reliance Communications (down 2.56%), ACC (down 1.34%), BHEL (down 0.36%) and Maruti Suzuki (down 0.23%).

All sectoral indices on the BSE settled in the positive terrain today. Information technology was up 3.48%, realty was up 3.01%, metal was up 2.98%, technology was up 2.48% and auto surged 2.02%.

Banks may soon face a liquidity crunch as demand for funds is increasing on account of the telecom operators’ huge outgo towards the payment for third generation (3G) spectrum. The government is set to get revenue of over Rs67,700 crore from the recently concluded 3G auction as compared to the Budget estimate of Rs35,000 crore. Telcos have been asked to make the payments by the end of the current month.

The top gainers on the Nifty were Hindalco Industries (up 7.44%), IDFC (up 6.73%), Jaiprakash Associates (up 5.63%), Tata Motors (up 5.36%) and ICICI Bank (up 4.78%).

The losers on the Nifty were Reliance Communications (down 2.88%), Sun Pharma (down 1.69%), Idea (down 1.65%), ACC (down 1.62%) and ONGC (down 0.78%).

Foreign institutional investors were net sellers of Rs1,464.19 crore in the equity markets on Tuesday, while domestic institutional investors were net buyers of stocks worth Rs406.12 crore. The Indian rupee extended its rise on Wednesday on the back of gains in the equity market and the losses in the dollar against other major currencies.

At the time of writing, UK’s FTSE 100 was up 2.07%, Germany’s DAX was up 1.93% and CAC of France was up 2.73%.


SEBI questions Artha Group’s Blue Mountain Estates scheme

The market regulator has sought details from Artha Property for its Blue Mountain Estates scheme in Ooty to see if it falls under the ambit of a collective investment scheme

Market watchdog Securities and Exchange Board of India (SEBI) has initiated a preliminary enquiry into the Artha Group’s Blue Mountain Estates project, according to SEBI sources. The enquiry is aimed at finding out whether the project in Ooty falls under the ambit of a Collective Investment Scheme (CIS), and if so, whether it should be registered under the CIS rules of SEBI. The company had told Moneylife earlier that the scheme does not fall under the CIS category.

“This is not (a) collective investment scheme. Each customer buys his/her own piece of land, which will be demarcated and be identifiable. The nature of transaction is that of outright purchase of land and Artha facilitates the purchase of plots and hence (this) is not an investment scheme but land purchase,” asserted Suresh Rangarajan, managing director and chief executive officer of the Artha Group in an email to Moneylife. Artha Group has interests in real estate, insurance, loans and an online money management service. It has been substantially funded by the Times of India group.

SEBI defines CIS as: “Any scheme or arrangement made or offered by any company under which the contributions, or payments made by the investors, are pooled and utilised with a view to receive profits, income, produce or property, and is managed on behalf of the investors is a CIS. Investors do not have day-to-day control over the management and operation of such scheme or arrangement.” Any company floating a scheme, which invites deposits from the public as a CIS has to obtain SEBI’s permission. No entity can mobilise any money from the public or from investors unless the scheme is assigned a rating from a credit rating agency registered with SEBI. 

“Blue Mountain tea estates are sold as plots of land. Customers have full freehold legal titles for the land and can freely transfer the sale deeds. It is typical of a property purchase and does not guarantee any recurring returns. Nor does it guarantee any fixed capital appreciation. It is like a typical property asset purchase and the customer is free to use the same in the manner he/she deems it fit. Upon payment of full consideration, the plot of land is transferred and registered in the name of the customer. The objective of this project is to offer customers an opportunity to own half or one acre of a plot of land at a hill station and combine holidays with capital appreciation,” said Mr Rangarajan.

According to Artha, after investing in a plot, the person becomes a co-owner of the land. The customer is also entitled to a 50% share in profits from all the produce generated from the plot of land.The day-to-day maintenance like planting, harvesting and processing can be contracted to a care taker.The scheme claims to offer a regular income. The customer has an option to sell the land anytime. The land costs Rs9.9 lakh for one acre. Moneylife gathers that the Artha scheme has been cleverly formulated by the company so as to apparently fall outside SEBI’s rules.




3 years ago

I have seen a full page ad in TOI today where in they are selling plots in the same property. The pric is 7.8 lacs per plot. After reading the above article Iam confused is it the same property. Please check the link of the company.Not much informaion is shared.Its a one page site.Looks very dubious.


5 years ago



5 years ago

what is the status of the enquiry?
they are advertising this project quite strongly now, so does that mean they are cleared?
What about their other project 'Mountain View'?

Pradeep Bhageria

6 years ago

Its really worth noting the smartness of few people like Rangrajan. Lke ways, memberships of Country club are being openly sold with plots.. People form coroprates of the like City Limozines, etc come out with fraudulent ideas and cheat people openly... Is there collusion between these people and authorities.. The legal system is being taken for granted.. When will the government awake and create awareness among people... People need to awake..

rakesh varma

6 years ago

can someoner please explain what is meant by a co-owner here in the last paragraph. After buying the plot for an instance will the buyer not be the sole owner of the plot ? Also does a buyer violate any agricultural laws if he/she wants to costruct a house on the plot instead of the plantation work ?


6 years ago

Artha seems to have had big hopes of making millions ($) from the equity / MF/ Investment business that they got into initially. That didn't happen so now they are getting into all this..


6 years ago

Blue Mountain offered by Artha Property is an excellent opportunity to own a tea garden and they have not promised any guaranteed income...

Ramesh Karel

6 years ago

Believe it or not, biggest collective investment scheme in disguise is Club Mahindra.

Its salesman are biggest liars. They promise you so many things. When package actually comes from company, nothing promised is there.

package always comes late but if u want to cancel, within their legal time limit, it is too late.

ask for draft contract/terms before signing and they will never give u!!! but still u r supposed to sign application where u have to say "I have read and understood all terms in agreement"!!!

yes, we sign such agreements at many places but here cost is of lakhs of rupees.

too many customers chasing too few properties.

too high commission to salesman and no supervision over them and no complaint resolution.

just check on net so many complains.

they promise you watch, cash rebates, tv, discounts, etc. Then u have to fight fight fight for all this. But u get only 10% of promised after fight.

Too much cost also on advertisement. But u dont ever get the places advertised becoz they are always booked by "someone".

They say their resorts are "exclusive". But you call up and say u want to rent them as non-customers and they will rent u same place!!!

too many hidden costs. u have to pay for rci membership, apart from exchange fees.

Stanley D'Souza

6 years ago

People who wish to invest in such property must be careful. I myself have lost lot of money in such land purchase near ooty and hosur. This was many years back, a company called VHF had approached many people specially in Gulf countries promising regular returns on sale of produce grown there and appreciation of property as well. Only for a year or two people received money (peanuts) from the proceeds of sale of produce. It is now ZARO. Many people have written off this investment.
Investors please keep away.

parackal thomas

6 years ago

It is a trick to say it is out right purchase- If so the owner should have the RIGHT to cutivate what ever he wants- not Tea or anything else others are growing- also note - the purchaser becomes a CO_OWNER- that shows it is not an outright purchase.. monely life should make representations to the authorities.- SEBI and such others dealing with LAND TITLE; and COMPANY LAW.


6 years ago

Yet another Plantation Schemes and Time Share type working.. It has been very popular in the past and most of the promotors are evasive till date after collecting several hundred crores from investors. But ultimately its the investors greed which is to be blamed..

R Balakrishnan

6 years ago

Scam like characteristics. Why cannot they sell full interest? No difference between many plantation schemes that hit the gullible public. If it is my land, why should I not be able to sell it clean next day ? SEBI should ban this immediately

Ramesh Karel

6 years ago

Good article. Has all the hallmarks of a typical Collective Investment Scheme. Outright purchase schemes do not give 50% share of profit.

Important would be to ask, not the company, but the customer. To ask them whether any fixed return are assured. To ask them whether they are really interested in the property or profits or they are interested in return of principal with assured returns. And most important, what is commission level of agents.


6 years ago

Artha is from Times group, and i dont know why they are doing all the unrelated things like selling plots near Hosur and other non related things.
But i am sure nothing will come out of it since times group is involved

When KYC norms go for a toss with prepaid mobile connections

Unless all documents are verified, one is not supposed to use a prepaid SIM card to make and receive calls. However, in reality, you can use any prepaid card without getting your documents verified, for one or two days

Regulators like the Reserve Bank of India, the Securities and Exchange Board of India (SEBI) and the Telecom Regulatory Authority of India (TRAI) are insisting on strict implementation of know your customer (KYC) norms. However, in practice, these norms are not being followed vigorously.

In the case of prepaid subscriber identity module (SIM) cards, it is observed that you cannot only buy, but also use these cards for making and receiving calls for a few days before the verification of documents. Usually, verification of documents for a new prepaid SIM card takes one or two days and the subscriber can make and receive calls during this period. This may be used by anti-social elements for any purpose like extortion and even by militants for spreading terror.

"We just need documents like a filled-up application form, address proof and photo-identification from a customer for selling prepaid SIM cards. We do not bother to check whether the person buying a prepaid SIM is the same person whose documents have been submitted," said a retailer, who did not want to be named.

Agents, who roam from one retailer to the other, collect these documents and send them to the company. The representative from the mobile service provider then checks these documents for any error and marks it as verified. In case there is an error, then the representative calls up the subscriber and asks for rectification. In the meantime, the subscriber can use his new SIM card for making or receiving calls. In short, this can be used by anti-social elements as a 'use-and-throw' type of service.

According to a customer care executive from Reliance Communications, the company tries to provide permanent connection on the same day. Its representative visits the subscriber's place and then sends a positive address verification report (AV report). In case the report is negative, then the customer is asked to submit the correct documents. "Usually when we feed the document details in our systems, we immediately come to know whether that particular address is valid or not. In case it is not valid then we immediately deactivate the number," the executive said. However, he admitted that during the buying and verification process, the customer can make and receive calls, without any problem.

Further, since there is no check on whether the buyer is the same person whose documents have been submitted, the connection can be misused. This could become a constant worry for people who have lost their ID proof like driving licence or PAN card as one is not sure if the document is being misused for buying SIM cards or not.

Unfortunately, there is no central database of mobile subscribers. So you cannot check if any other mobile number has been issued in your name.

In case you have lost any of your documents that can be used for purchasing a mobile connection, file a first investigation report (FIR) at the nearest police station. It may come in handy in case someone is misusing your documents for buying and using a new prepaid SIM card. 



R. Balakrishnan

6 years ago

A few months after getting yr pre paid, you could get a sms to resubmit photo, address proof etc., I think this is an admission by the phone co that they have lost ur records. TRAI must look in to this. As a customer, it is irritating to give the same documents twice over.


Ashit Shroff

In Reply to R. Balakrishnan 6 years ago

It is not an admission by the phone co that they have lost the record. Most of the times it is the DOT who has asked for a subscriber reverification and therefore the documents are called for once again. We have to bear in mind one thing that the prepaid connections are taken by the lower strata of the society and migrants who do not have any supporting local documents like proof of identity and even the proof of address but wants a connection. Therefore the bulk of the users and the actual susbcribers are different. Besides the life cycle of a prepaid connection is just 3 months. Users who do not have any documents but still want a connection either borrow the documents from their friends or the retailers help them out.It is a big security risk because it is extremely easy to get a prepaid sim card but extremely difficult to get a post paid card.

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