Regulations
Government examining National Spot Exchange reply to show-cause notice

Commodities market regulator FMC, which analysed the trading data of NSEL, had found that National Spot Exchange allowed trading on its platform without verifying whether the seller has stocks with him or not, thus in effect allowing 'short sale' by members

 
New Delhi: The union government is examining the reply of Financial Technologies-promoted National Spot Exchange Ltd (NSEL) to a show-cause notice issued for offering commodity contracts allegedly in violation of law, Food Minister KV Thomas has said, reports PTI.
 
Spot exchanges, including NSEL, were allowed to offer one-day duration forward contract under Section 27 of Forward Contract Regulation (FCR) Act, subject to conditions, like the member of exchange would not resort to 'short sale' and outstanding positions at the end of trading day would result in delivery.
 
"A show-cause notice was issued to NSEL for non-compliance of stipulated conditions of the notification dated 5 June 2007. NSEL has submitted the reply to the notice, the same is under examination of the government," Thomas said in a written reply tabled yesterday in Rajya Sabha.
 
Commodity markets regulator Forward Markets Commission (FMC), which analysed the trading data of NSEL, had found that the exchange allowed trading on its platform without verifying whether the seller has stocks with him or not, thus in effect allowing 'short sale' by the members, the minister said.
 
Short-sale means selling commodities, which one does not own at the time of contract, with the hope of buying at a lower price before the delivery time. If the period of delivery is more than 11 days, it is called future trade.
 
The FMC had also found that the contracts traded on the exchange platform for which settlement period exceeded 11 days were non-transferable specific delivery (NTSD) contracts, which was in violation of provisions of FCR Act, he added.
 
Asked if a scheme promoted by member of NSEL resulted into an illegal non-banking financial company transaction (NBFC), Thomas said: "A complaint has been received by FMC that an investment scheme promising assured returns to retail investors is being marketed by a member of NSEL."
 
FMC is examining whether the scheme is violating the condition mentioned in the 2007 notification that all the outstanding positions of the trade at the end of the day should result into delivery, he said.
 
"Regarding the scheme resulting into an illegal NBFC transaction, the issue is being examined in consultation with Finance Ministry," the minister said.
 
The country has three national spot exchanges. NSEL and NCDEX Spot Exchange started operating since 2008, while National APMC Spot Exchange is yet to commence its operation.
 

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Lok Sabha Bill make sexual assault a gender-neutral offence

The amendment bill expands the definition so that cases of sexual assault where victims were male would fall under the same law along with cases where victims were women

 
New Delhi: Both men and women could soon be able to invoke the provisions of a criminal law in case of sexual assault, once a bill in this regard is passed by Parliament, reports PTI.
 
The Criminal Law (Amendment) Bill, replacing the word 'rape' by the phrase 'sexual assault' and seeking to widen the scope of the offence, was introduced by Home Minister Sushilkumar Shinde in the Lok Sabha on Tuesday.
 
The amendment bill expands the definition so that cases of sexual assault where victims were male would fall under the same law along with cases where victims were women.
 
At present, the offence is defined under section 375 of the Indian Penal Code as per which a man is said to commit 'rape' in case he has sexual intercourse with a woman against her will.
 
The bill also carries provisions which makes carrying out of acid attacks a separate offence punishable by a maximum of ten years' in jail. Attempt to do so could send the accused to jail for 5-7 years.
 
Under the bill, an offender can be jailed for life in cases of sexual assault, irrespective of the victim's gender.
 
The term 'sexual assault' has also been widened to include forced unnatural sex.
 
The bill lays down strict provisions under which persons below 18 making a complaint will not have to face the accused in court or police stations. It has raised the age of consent from 16 to 18 years.
 

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Opposition attacks UPA government over FDI in retail, wants rollback

Sushma Swaraj maintained that the concept of large supermarkets has failed in Western economies and wondered how the government was claiming it would create jobs in India

 
New Delhi: Slamming the United Progressive Alliance (UPA) government for allowing foreign direct investment (FDI) in retail, Opposition on Tuesday asked it to withdraw the decision in national interest fearing it would render retailers jobless, impoverish farmers and hurt consumers, reports PTI.
 
Initiating the debate on the issue, Leader of the Opposition Sushma Swaraj contended that Prime Minister Manmohan Singh, as Leader of the Opposition in Rajya Sabha in 2002, had opposed FDI in retail and questioned as to what has changed that the government is so determined to implement it.
 
In her nearly 90-minute speech, punctuated by repeated disruptions and heated exchanges, Swaraj maintained that the concept of large supermarkets has failed in Western economies and wondered how the government was claiming it would create jobs in India.
 
She asserted that Bharatiya Janata Party (BJP) was not opposed to FDI per se and as Leader of the Opposition she was willing to travel with the Prime Minister across the world to invite investments in other sectors like infrastructure. Singh was present when she spoke.
 
Appealing to parties like SP and BSP to support the motion moved by her and Khagen Das (CPI-M) against 51% FDI in multi-brand retail, Swaraj said any defeat during vote will not bring down the government but will force it to rollback the decision on FDI.
 
"Your fear that the government will fall because of this vote is unfounded," she said turning to members of SP and BSP, which have so far maintained ambiguity over their stand on voting.
 
Pressing for rollback of the "disastrous" FDI decision, she told the government "hum aapko hara ke jeetna nahin chahte, hum aapko mana ke jeetna chahte (We don't want the rollback by defeating you. We want the rollback by convincing you)," she said.
 

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