The MCI would be replaced by a seven-member body of eminent doctors, which will look after the functions of the council
The government would soon bring in a law for the formation of a body to regulate medical education in the country and till then a seven-member panel of doctors will replace the scam-tainted Medical Council of India (MCI), which has been dissolved, reports PTI.
Health secretary Sujatha Rao today said a draft law for the formation of such a body would be formulated within a month.
"We have suggested an over-arching body, which will be responsible for maintaining standards and regulation of medical colleges," she told reporters adding that the draft law would be a legislative response to the credibility crisis which the MCI was in.
The Union Cabinet is understood to have yesterday decided in-principle to dissolve the MCI whose chief Ketan Desai has been arrested by the Central Bureau of Investigation (CBI) on graft charges.
Rao said that an ordinance in this regard was awaiting the President's assent. An ordinance is required since the MCI was created by an act of Parliament.
Desai was arrested on 22nd April by CBI for allegedly accepting bribe of Rs2 crore to give permission to a Punjab medical college to recruit a fresh batch of students without having requisite infrastructure. He has already submitted his resignation to MCI vice-president PC Kesavankutty Nair.
In Mumbai, health minister Ghulam Nabi Azad when asked about the ordinance, indicated that this was required as there was no law by virtue of which action could have been taken against the MCI.
Mr Azad said the MCI was created by an Act of Parliament.
"That had given them absolute power. In that Act there was no provision of suspension or even a show-cause notice".
"So we have to take some action," he said.
Sources said the MCI would be replaced by a seven-member body of eminent doctors, which will look after the functions of the council. Among the names doing the rounds for heading the panel are former AIIMS director P Venugopal.
The main functions of the MCI, set up under the Indian Medical Council Act, 1933, are to ensure uniform standards in medical education and grant of recognition to medical degrees awarded in India and abroad.
The government had earlier proposed an amendment to the MCI Act in 2005 to ensure some amount of government control over the body. But the proposal had been negated by the Parliamentary Standing Committee.
Currently, MCX enjoys market leadership with a share of over 75% in volumes traded on commodities exchanges in India
The country's top commodity bourse Multi Commodity Exchange has received the permission from commodity market regulator Forward Markets Commission (FMC) for launching the initial public offer (IPO), reports PTI.
"The Commission on 22 April 2010 has granted the permission/no objection certificate (NOC) to MCX for its proposed IPO subject to certain conditions," FMC said in a statement.
Two years back, MCX had got the NOC for launching the IPO from the regulator, after which the exchange sought the approval from the capital market regulator Securities and Exchange Board of India (SEBI). However, in August 2008, the exchange decided to scrap its IPO plan to sell six million shares as turbulent stock markets sapped investors' appetite for risk.
As the NOC expired recently, the exchange had applied for its renewal. Under FMC rule, it is mandatory for commodity exchanges to get NOC from the regulator for launching its IPO.
Asked if MCX would file fresh prospectus, the exchange's spokesperson told PTI, "We have not filed any draft red-herring prospectus (DRHP) and have not finalised any timeframe. So we cannot comment now."
Currently, MCX enjoys market leadership with a share of over 75% in volumes traded on commodities exchanges in India. The turnover of the exchange was Rs6,03,455 crore in April.
SEBI’s new rule asks mutual funds to disclose a summary of investor complaints, but investors almost never complain directly to AMCs. Most complaints are resolved by mutual fund agents
Market watchdog Securities and Exchange Board of India (SEBI) had yesterday asked all asset management companies (AMCs) to disclose investor complaints on their respective websites as well as in their annual reports in a bid to protect investor interest and bring in more transparency. Fund houses have been asked to disclose last year’s complaints by 30 June 2010. The disclosure includes the type of complaints and whether they are resolved or pending.
Although SEBI’s intentions are sound, it is unlikely that the move will do much good for investors. While some financial experts believe that this move will increase accountability on the part of fund houses, others say that it won’t have a major impact and will only increase compliance work.
Rajesh Jha, CEO, Jain Investment told Moneylife, “Six months back, there was some problem with CAMS back-up of one of the AMCs. In one month there were some 400 complaints against that AMC. It was a specific problem and we sorted it out with their operations head.” He added, “There are very few people who go on the AMC site and register complaints. Most of the complaints are resolved by our back-office team. We resolve it through the registrar or AMC. A majority of the complaints are resolved through us.”
Distributors say that complaints registered with them are mainly fundamental complaints related to dividend payments, delay in dispatching account statements, incorrect address, redemptions and problems with systematic investment plans (SIPs).
“The complaints are pertaining to service, but the larger issue is not about servicing; it’s about mis-selling. A fund house cannot be held responsible for mis-selling. They are the manufacturers. Generally all fund houses’ services are good. The main intention of SEBI is to curb mis-selling. AMCs have a limit to which they can handle investor complaints. Most top-rung investors are left high and dry when there is nobody to service them. So they approach us. Most investors don’t have time to complain to fund houses. We sort their complaints without charging anything so that we retain our clients,” said Vivek Rege, MD, VR Wealth Advisors Pvt Ltd.
Speaking about the directive, Harish Mohan, MD, Time Financials said, “It’s a good move but just registering a complaint doesn’t solve the problem. I have sent emails to each and every AMC for which I don’t have any reply from their end. I am not sure whether it will be registered on their website. Nobody is taking responsibility. I send complaints to the relationship manager (RM) of the fund house. If the RM does not escalate it to the next level it may not get registered.”
From what experts are saying about the move, it appears that SEBI is barking up the wrong tree instead of going into the root of the matter.