Dena Bank scraps processing fee on home, auto loans till 31st December

Dena Bank cut its processing fee on home, auto, personal and gold loans till month end

Mumbai: State-run Dena Bank has scrapped processing fee for housing and auto loans for a limited period till month-end, reports PTI.
The fee on personal loans and gold loans have also been halved, a statement issued here said, adding the offer is valid till the end of the month.
Apart from that, it will also be giving a 50% concession in processing fee for trade finance scheme for credit facilities of up to Rs2 crore, it said.
Doctors availing credit facilities of up to Rs2 crore will also get to enjoy 50% cut in the processing fee, the bank said.
At present, the rate of interest for the bank's housing loans range from 10.45 to 11%, 11-12% for auto loans, while personal loans come at 13-14%, the statement said.
Demand from the corporate side has dried up due to gloomy economic conditions, which has forced bankers to shift focus towards the retail segment, where demand continues.


SEBI-Sahara case: Supreme Court defers hearing till tomorrow

A bench headed by Chief Justice Altamas Kabir granted one more day to Sahara which sought additional time to make a statement on when it would return Rs27,000 crore invested by people in its two companies

New Delhi: Sahara group was on Tuesday given a day more by the Supreme Court to spell out when it would return Rs27,000 crore invested by people in its two companies, reports PTI.
A bench headed by Chief Justice Altamas Kabir granted one more day to Sahara which sought additional time to make a statement on the issue before the apex court.
Senior advocate Gopal Subramaniam, appearing for one of the Sahara group companies, made the plea following which the bench deferred the hearing of the case till tomorrow.
Sahara Group had been yesterday directed by the apex court to apprise it on the issue of refunding the money to investors.
The court had pulled it up for not refunding the money despite its order and had asked Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to inform the court by today whether they would be able to refund the entire amount to their investors within a week.
Justice Kabir had come down heavily on the companies for not implementing the apex court's order and said they are not entitled to a hearing, but finally agreed to hear Sahara's plea saying he is more concerned about investors' money.


Collective Investment Scheme: SEBI cannot remember its own rules

In 2008, SEBI declared that art funds are collective investment schemes as per its regulations issued in 1999. In 2012, it dismissed a complaint filed by an investor against Osian's Art fund saying that the case does not fall under its purview. What exactly is happening?

Collective Investment Schemes (CIS) are rampant across the country but the market regulator Securities and Exchange Board of India (SEBI) which regulates CIS is unable to spot them. But when it does a flip flop over the most celebrated recent case of CIS, on wonders does it really intend to apply the CIS rules seriously. Indeed, the way it has changed its stance over the years regarding regulation of art funds, especially Osian's Art Fund, makes one wonder, whether the market regulator is under some kind of amnesia.


  • CIS rules came into effect in October 1999 after rampant loot by the so-called plantation companies such as Anubhav Plantations, AVI Plantation and Floriculture (SEBI’s data on companies who run CIS, contains 605 names, mostly of the plantation companies. SEBI’s CIS regulations stated that “any person proposing to carry any activity as a Collective Investment Management Company on or after the commencement of these regulations shall make an application to the Board for the grant of registration in Form A.”
  • In 2006 Osian’s launched an art fund which pooled money to invest in art. This was an open and shut case of CIS. But Osian’s did not care to be registered under SEBI’s CIS rules. The SEBI chairman then was M Damodaran, a member of Indian Administrative Service (IAS).
  • In November 2007, SEBI served a show-cause notice on Osian’s asking as to why the Fund should not be regulated. There was no consequence of this notice.
  • Osian’s half-yearly report released in February 2008, states, “Osian’s presented the case to SEBI through its legal galaxy, explained their viewpoint at length on legal as well as industry-specific issues and made submissions; since then, there has been no further communication from SEBI. No directions for registration under the CIS Regulations have been issued to the Art Fund or Oseta Investment Trustee Co Pvt Ltd as of date”. In other words, SEBI couldn’t care much.
  • In February 2008, though, SEBI issued an official advisory that art funds were collective investment schemes and would have to be registered with it or be liable to civil and criminal action. The advisory states that “in terms of section  12 (1B) of the SEBI Act, 1992, no ‘person’ shall sponsor or cause to be sponsored or cause to be carried on a collective investment scheme unless he obtains a certificate of registration from the Board in accordance with the regulations.” SEBI clarified that for a collective investment scheme to raise money from the public it is prerequisite that the entity must (a) be a company, and (b) registered with SEBI as a Collective Investment Management Company. “Therefore, the launching/ floating of the  ‘art funds’ or schemes without obtaining a certificate of registration from the Board in  terms of the provisions of the Regulations amounts to violation of the provisions of Section 12 read with Section 11 and 11AA of the SEBI Act and the Regulations. For such violations, appropriate actions, civil and criminal, under the SEBI Act may be taken by SEBI against such funds/companies,” the advisory said. Strangely, despite this, it took no action against Osian’s.
  • It woke up and granted Osian’s an opportunity for a hearing before the whole-time director of SEBI on 5 September 2008. Again, there was no further communication from SEBI after the hearing. By this time, SEBI chairman was another illustrious member of the elite IAS, CB Bhave, whose Sebi reign has been among the worst.
  • While SEBI seemed uninterested to act against Osian’s, AK Muthuswamy was knocking on SEBI’s doors about the failure of the Osian’s Art. The three-year fund was supposed to return investors’ money by 2009 but did not do so. SEBI dismissed this complaint by arguing that the case did not fall under its purview! Yes, the February 2008 advisory notwithstanding.
  • Mr Muthuswamy approached the Securities Appellate Tribunal (SAT) which asked SEBI to re-examine the issue but this time SEBI came up with another excuse. It pointed to a Madras High Court of 16 April 2012 which ostensibly ruled that the regulator does not have power to review its own orders.
  • This was somewhat of a white lie. The SAT noted that the High Court has categorically stated that its order “shall not bar the petitioner to challenge the order passed by SEBI, if so permissible in law, by filing an appeal or taking other remedies to address the grievance.”


You wonder what will be SEBI’s next step and when it will take that step. After all, the regulator is not accountable to work within a specific timeframe. Osian’s Art Fund was a three-year close-ended fund launched in June 2006.


It raised Rs102.40 crore from 656 unit-holders across 39 cities, most of them high net-worth individuals (HNIs). The scheme used to declare NAVs showing 30% returns, but when it was time for redemption, the money wasn’t forthcoming. The scheme was wound up on 10 July 2009.


The turn of events, change in stance by SEBI in the Osian's case makes one wonder, what exactly is happening. Is the market regulator under amnesia so much so that it does not even remember its own regulations, advisory and stance taken earlier? Or are Osian’s lawyers too ‘persuasive’?



Bosco Menezes

4 years ago

The word "tragicomedy" was designed for exactly this sort of thing - it would be hilarious if not so tragic !!

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