Citizens' Issues
FTIL founder Jignesh Shah arrested by ED
The Enforcement Directorate (ED) arrested Financial Technologies India (FTIL) founder Jignesh Shah under the Prevention of Money Laundering Act (PMLA), an official said here late on Tuesday.
 
Shah was arrested late on Tuesday as he refused to cooperate in the investigations after he was grilled all day.
 
He will be produced before the Special PMLA Court on Wednesday, ED sources said.
 
The ED claims to have clinching evidences of money laundering against Shah and will seek his custody, the sources said.
 
The ED had lodged criminal cases against the National Spot Exchange Ltd and 67 others in 2013 under the PMLA for alleged money-laundering of over Rs 3,700 crore.
 
In its chargesheet filed early last year, the ED had detailed the criminal conspiracy by the officials of NSEL which led to the cheating of around 13,000 depositors.
 
Commenting on the developments, BJP MP Kirit Somaiya said he would ensure the case is taken to its logical end.
 
Shah was earlier arrested in August 2014 by the Mumbai Police Economic Offences Wing and later released on bail.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Nifty, Sensex momentum continues to be up – Tuesday closing report
We had mentioned in Monday’s closing report that Nifty, Sensex momentum is up, but the market is overbought. The major indices of the Indian stock markets continued their upward move and closed with healthy gains over Monday’s close. Trading volumes were also high in the NSE. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
 
 
Positive global cues, combined with short covering and healthy monsoon rains, buoyed the Indian equity markets to new intra-day highs in the last 11 months on Tuesday. Consequently, the key indices traded on a higher note during the late-afternoon session, as healthy buying was witnessed in banking, metal and consumer durables stocks. However, the BSE market breadth was tilted in favour of the bears -- with 1,519 declines and 1,243 advances. Initially on Tuesday, the indices opened on a firm note in sync with their Asian peers, especially the Japanese markets. Healthy progress of the monsoon season and expectations of further economic reforms enhanced investors' risk-taking appetite. However, gains were capped due to profit booking at higher levels and uncertainties over upcoming macro-economic data like factory output -- Index of Industrial Production (IIP) -- for May and inflation figures for June. Market analysts observed that pharma sector stocks were facing resistance at higher levels due to profit booking. Most auto sector stocks were trading firm on lower levels of buying.
 
Coal India Board approved a buyback of over 10 crore shares at a price of Rs335 per share for an aggregate consideration not exceeding Rs3,650 crore, the company said on Tuesday. The buyback offer is, however, subject to approval from shareholders and other regulators and government authorities. "The Board of Directors of Coal India Limited (CIL) at its meeting held on Monday has subjected to the approval of the shareholders of the company by way of special resolution through postal ballot and subject to approvals of statutory, regulatory or governmental authorities as may be required under applicable laws, approved the buyback of not exceeding 10,89,55,223 equity shares of the company," the board said in a filing to Bombay Stock Exchange on Tuesday. According to the company, the offer will not exceed 25% of the aggregate fully paid-up share capital and free reserves of the company as per audited accounts for the financial year ended 31 March 2016. Government holding in the company was at 79.65% as on 31 March 2016. Coal India shares closed at Rs316.85, down 1.14% on the BSE.
 
The US dollar climbed against the Japanese yen on Monday as investors raised expectations for further fiscal stimulus in Japan after Japanese Prime Minister Shinzo Abe's ruling coalition won the local elections. On Sunday, Japan's ruling coalition won a landslide victory in upper house elections. Analysts thought that this makes it likelier that Abe will be able to push through further monetary easing measures. The greenback added 2.24% against the yen on Monday in late trading, the biggest one-day gains since April. Moreover, investors were still digesting the newly-released nonfarm payroll report. Total nonfarm payroll employment increased by 287,000 in June, beating market consensus of a 175,000-gain, and the unemployment rate rose to 4.9%, the Labour Department reported on Friday. Analysts said the June nonfarm report mollified concerns of an economic slowdown in the USA, as May's payroll rose only by 38,000 and notched the fewest monthly job gain in almost six years. With the US dollar firming up, foreign institutional investors are likely to show greater interest in emerging markets like India.
 
With India needing about a trillion dollars for infrastructure development, India's Minister of Road Transport, Highways and Shipping Nitin Gadkari has highlighted investment opportunities in India for US investors. With Prime Minister Narendra Modi making the country's infrastructure development the top-most priority of the government, "This is a golden opportunity to invest in India," he told a roundtable organised here Monday by the US-India Business Council (USIBC). "We are committed to improving the country's road, highways, and port connectivity in a time-bound, result oriented, corruption-free and transparent manner that includes e-governance and fast-tracking decision-making," Gadkari said. "The pace of road construction has accelerated to an all-time high of 20 kilometres per day and next year we plan to increase it to 41 km per day," he said. Gadkari told Indian media that thanks to recent government decisions there are no road blocks to investment in transportation sector with 95% of issues facing investors resolved. "Previous image of investment climate in India is completely changed." During his meeting Monday with US Secretary of Transportation Anthony Foxx, he had discussed at length all the problems facing India in the transportation sector. S&P BSE India Infrastructure Index closed at 170.18, up 1.06%
 
The two-day strike call given by major unions in the banking sector have been deferred following an restraint order by the Delhi High Court, said a top leader of All India Bank Employees' Association (AIBEA). "In view of the Delhi High Court restraint order, our strike on 12th and 13th July stands deferred," said AIBEA General Secretary CH Venkatachalam. Bank Nifty closed at 18,667.60, up 1.50%.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

User

Brexit: Lodha and Indiabulls with UK assets face risks, says Fitch
Indian homebuilders with significant investments in the London property market will face near-term challenges from Britain's vote to leave the EU on June 23, says Fitch Ratings. Indiabulls Real Estate Ltd and Lodha Developers Pvt Ltd have significant exposure to the luxury residential and commercial property segments in London. Both companies made sizeable investments in London's Mayfair and suburbs in 2013 and 2014.
 
In a report, the ratings agency says, "Demand for luxury residential properties and commercial properties - the segments some Indian homebuilders have invested in - may remain weak at least over the coming six to 12 months as buyers postpone purchases and banks trim loans amid increased economic uncertainty." 
 
"Of the two, Indiabulls is less exposed to demand volatility in the next six to 12 months because it only expects to start developing its properties in 2017. Lodha could be more exposed to near-term property-market turbulence because it has already launched the smaller of its two investments," the ratings agency says.
 
According to Fitch, Lodha's rating already factors in the uncertainty around presales in its projects, both at home and overseas, as well as our view that near-term operating cash flows may not be sufficient to reduce its high leverage. Indiabulls' rating factors in its demonstrated ability to reduce leverage over the last 12 months, as well as the modest improvement in sales momentum in its key domestic property projects, it added.
 
Asking prices of London's luxury residential properties have fallen by 5%-20% over the last few weeks by some market estimates. This is in spite of the British pound trading at all-time lows against the US dollar - foreign investors make up a considerable part of the demand for London's luxury residential properties. 
 
"However over the longer term, these risks may be moderated by the tight supply of new residential developments, particularly in Central London, owing to challenges in securing regulatory approvals on new projects," Fitch says.
 
Commercial property demand has also weakened, and in some instances, prompted investors to exit commercial property-focused investment funds. This has led to some funds freezing withdrawals to enable a more orderly closure, while others have offered withdrawals at steep discounts to the net asset value to reflect the potential impact of having to sell assets quickly. Furthermore, many foreign and domestic banks have also cut credit exposure to London property investors by reducing loan-to-value ratios or freezing new loans altogether. 
 
Fitch says, the risk to Indian homebuilders will depend on the extent leverage was used to fund their London projects, and whether project construction and marketing sales coincide with the ongoing market volatility. Homebuilders may choose to defer marketing launches until investor sentiment improves, cut prices to spur higher sales, or sell equity stakes in the projects to reduce leverage, it added.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)