Govt to decide on idle coal blocks with 82 firms

New Delhi: The government today said it would decide the fate of captive coal blocks lying idle with 82 companies next month, including ArcelorMittal, Tata Steel and NTPC, who have been issued notices for not developing them within the stipulated time, reports PTI.

"We have received their (companies') replies and are compiling them. We will take the final decision in January on the issue," coal minister Sriprakash Jaiswal told PTI.

Since October, the government has issued notices to 82 firms to weed out non-serious players who have failed to develop, within the stipulated time, the coal blocks allotted to them for captive use.

While threatening to withdraw their coal blocks, the government had asked the firms to explain their positions.

"Enhancing coal production is a priority for the government and we can take the coal blocks back, if they are not developed in a given time-frame," Mr Jaiswal said.

The other companies which were issued show-cause notices include Navin Jindal-led Jindal Steel and Power, Vedanta Group firm Sterlite Industries, Sajjan Jindal-led JSW Steel and GMR Energy.

In a similar drive undertaken earlier, the government had de-allocated 11 coal blocks.

The coal ministry had also taken a review meeting in July with the concerned companies, who have been allocated a total of 207 coal blocks for captive use under various power, cement and steel projects.

In 2009-10, India produced about 532 million tonnes of coal. However, efforts to raise coal production suffered a setback this year due to an environment ministry directive to put a large number of coal blocks under 'no-go' mining area.

According to Coal India, its production will fall short of target by 16 million tonnes this fiscal and may miss the expected output by 39 million tonnes in 2011-12 due to extension of tough environmental norms.

User

CLSA’s Wood predicts asset bubble in Asia

The more anemic that the Western recovery turns out to be, the longer it will take for Western interest rates to normalise, increasing the likelihood of Asia entering an asset bubble, says Christopher Wood of CLSA

Christopher Wood says that neither US consumption nor US employment recovery will be healthy and that this should become apparent by the first half of 2011. "This also seems to be the message from the US government-bond market, which has remained relatively well bid, despite the ongoing rally in the S&P500 amid rising optimism. The US bond market continues to send an entirely different message from the US stock market," Mr Wood writes in a global strategy piece in CLSA's Asia Themes 2011 report.



US bond prices have been falling from early November while yields have been rising. According to a Bloomberg News survey of the Fed's 18 primary dealers, investors buying benchmark 10-year notes will gain about 1% in 2011 once interest payments are re-invested, as the yield rises to 3.65% after averaging 3.2% in 2010. US treasuries have given a positive return in 2010 versus negative returns in 2009. But the best year was 2008, when US government debt was in great demand, as investors sought it as a refuge from the financial crisis.

Wood predicts that Western policy will remain 'super easy' due to the lackluster outlook for consumption and employment in the American economy and Europe's sovereign debt crisis. This will create an asset bubble in Asia, where China will be the epicenter. Asian governments are likely to progressively tighten their monetary policies, but this will be mainly to curb inflation. Over the longer term, this asset bubble will eventually give way to a deflationary bust says Wood.

In this same report CLSA's Eric Fishwick says, "QE2 will drive down the cost of capital globally and thus Asia is likely to see credit growth and accelerating domestic consumption and construction activity in 2011."
About India, the report says that "while the market looks vulnerable to a tactical correction on a continued commodity rally, the fragile state of some of the largest global economies raises question on the sustainability of high commodity prices. We would thus be less worried about the likelihood of a lasting impact on the market or economy."

Even so, the report warns of inflation fears, the hardening price of crude (India being particularly vulnerable), and the rising fiscal deficit raising the risk perception of the country. Also, higher commodity prices will put margins of Indian companies under pressure.

Despite these warnings, the broker expects investment upturn to further strengthen in 2011-12 due to the combined effect of higher infrastructure spending and an increase in private-sector capex. The firm urges investors to put their money in "best-managed Indian firms that leverage rising commodity prices" such as Hindalco, Tata Steel and Cairn India. One of CLSA's top long-term picks is Maruti Suzuki, but it is hesitant about it near-term, mainly because of the price wars with Toyota. The firm is overweight on the Indian banking sector.

Consumer plays are also big on its list-China, India and Indonesia's consumer sectors should exhibit J-curve hyper-growth over the next 5-10 years on rising incomes and propensity to consume and take risks. Even in the face of slower global growth, their consumers remain upbeat and will benefit from strong liquidity inflows and wage inflation in 2011.

The report also says that Australia presents a good investment opportunity, since it provides Asian exposure without the emerging market risk. "China and other emerging markets are driving demand for energy and materials, of which Australian companies are among the leading providers. A range of secondary beneficiaries will also see topline growth. The key risk is labour- cost inflation."

User

This MLM openly flouts SEBI norms and offers 120% returns in a year through stock market investment!

Stockguru.India and its group companies are self-styled investment advisors, offering Rs22,000 on an investment of Rs10,000 in one year

As if there were not enough potholes on the stock market route, here is a multi-level marketing (MLM) company that is promising 20% returns per month! The company Stockguru.India describes itself as the country's 'Premier Financial Consultancy', offering trading solutions in equity, derivatives, currency futures, commodities trading, initial public offerings (IPOs), insurance (life/non-life), general insurance, mutual funds, portfolio management services, terminal handling all under one roof.

Stockguruindia.com (the company's portal) has only one standard line of advice in all market situations-whether it is a bull market or a bear market, range-bound market or volatile market. It says, "We advise our clients to buy shares at a low price and sell them at a higher price. Selecting the right share at the right price and entering the capital market at the right time is an art. We help all our clients to make huge profits by investing in good shares for very short/short/medium/long term depending upon the client's requirements. Trading/investment for minimum intraday to T+5 days may give you a handsome return of 5% to 25% on your capital investment."

This MLM company's investment (!) plan is simple. You pay a minimum Rs10,000 as investment and Rs1,000 as registration fees. There is no limit on the maximum amount one can invest. Stockguruindia.com offers a return of 20% per month for up to six months and the principal amount invested is returned in the next six months. It also gives post-dated cheques of the principal and a promissory note as security. In short, on an investment of Rs11,000, the company offers to pay you Rs12,000 in six months and the rest Rs10,000 over the next six months, a total of Rs22,000 or a 120% return in a year.

So how does Stockguruindia.com offer such a high return where even leading investors like Rakesh Jhunjhunwala found it very hard to earn even 20% return from the stock markets? Here is the company's logic..."If you have gained Rs1,000 somebody has lost Rs1,000. If you have lost Rs1,000 somebody has gained Rs1,000. Most of the people you meet say (around 90%) that we have lost a lot of money in the financial markets. But that means around 90% people you do not know have made huge profits. For every seller there is a buyer."

If this sounds to be too good to be true, it lures investors with an additional 3% per month income through a binary plan of 27 levels. Binary plans of MLM companies are the new clients you bring in, who are placed below you in rank in a right and left combination. It's nothing but a trap. All MLM companies promise say you rewards if you complete the left leg-right leg cycle. But in practice this does not happen. There are very few people who manage to do this in a proper way. A majority of those participating fall in the category where they lack a single member in one leg, or a member becomes inactive thus freezing the spread of that leg and the business.

How do MLM companies operate without a trading license from the regulators, the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI)? Why has there been no action against Stockguru.India, Stockguruindia.com and its subsidiaries? Market regulator SEBI had, on its part, issued SEBI (Investment Advisers) Regulations, 2007 (the 'Draft Regulations') to regulate the advisory activities of investment advisers in India. But till date it has remained a draft only.

According to R Balakrishnan, a columnist for Moneylife, India probably is the only market in the world where a distributor needs to pass an exam, but absolutely no qualifications are required for someone to become a fund manager. The same is applicable for investment advisors as well. As a result, there are a number of 'self-styled investment advisors', including wealth managers, private bankers, chartered accountants and even some MLM companies like Stockguru.India.  

According to the SEBI Act 1992, "No stock-broker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with the securities market shall buy, sell or deal in securities except under, and in accordance with, the conditions of a certificate of registration obtained from the Board in accordance with the regulations made under this Act."
 
In addition, the Act says, "No person shall sponsor or cause to be sponsored or carry on or caused to be carried on any venture capital funds or collective investment scheme (CIS) including mutual funds, unless he obtains a certificate of registration from the Board in accordance with the regulations."

Stockguru.India and all its group companies are openly flouting the norms and rules. It is not registered with SEBI as investment adviser and still offers to trade on behalf of its clients. According to information available over the internet, Stockguru.India and its chairman and managing director Lokeshwar Dev, will help anyone to open a demat account with Sharekhan so that they can manage the investor's money. We checked with Sharekhan and the brokerage said, neither Stockguru.India nor Lokeshwar Dev have any relations with or any demat account with them.

In addition, neither Stockguru.India nor any of its group companies possess a certificate of registration from SEBI for CIS, but they are still collecting huge amounts from clients under the pretext of stock market investment. Are the regulators sleeping on this one?

User

COMMENTS

shankar

6 years ago

All that SEBI can do is to make hard Law against Mutual Fund Agents IFA. who do their job Honestly.Nothing more than that SEBI can do....Shame on SEBI.India mei Brahctachar ke liye bohut jagah hai lekin Imandari Honesty ke liye koi jagah nahi

sanjay giri

6 years ago

NO

KANAK PANDEY

6 years ago

after suicide of stock guru india's clients , the law book is read by govt. official, and not before 5 yrs when it was lunched. neither a single govt. official had inspected the office nor the govt of haryan a, delhi made obligation for giving certificate.

riteone

6 years ago

I have invested money in SGI. Let me be true, what is the function of govt. and RBI; tax your income and put it in pocket of richest like Anil, Mukesh, Tata and so on. (Check their wealth on forbes with tax holiday they enjoy.) Listen to 'Robert Kiyosaki'; if you still dream govt. or SEBI etc to save you. They are here to take your money legally. If this is wrong, are aware about meetings by bigshots(so called investment firms) to manipulate price everyday before market opens? Have your mutual fund manager shown you, how much they have earned and manipulated and what a miserable piece of profit thrown to you? There are manipulators who earn 20% daily(40% on FOREX - ofcourse not on USD~INR - which is only legal). Every share can go up to max 20% up or down in a day, and you say 20% per month is impossible? Think again, how FII make our market dance,huh!

Jeeshanali

6 years ago

Hi, so it mean the company is fraud....? then how they can show the legal documents on their website...? like PAN/TAN no's etc..,.? plz tell us details bcz m investing 3 lakh rupees...? so should i avoid to invest..,? 8983185152

REPLY

PAN

In Reply to Jeeshanali 6 years ago

bhai, showing PAN/TAN does not allow one to collect money from anyone. What eh company is doing is collecting money, then circulating it at the top and then leaving you alone without any money. Dont invest.

Manoj

6 years ago

Thank you for promptly removing the ad.

Nagesh KiniFCA

6 years ago

A smart cookie from Citibank Gurgaon pulls an exteremely fast one on not less than 20 HNI - don't tell me they were so docile and not extremely greedy - to commit as much as Rs.400 crores.
This guy was smart enough to forge both SEBI and bank's own internal circulars!
Goes to validate - "Duniya Jukti hain, Jhookanewala chayehe".
The Yanks boast of foolproof systems, operating procedures and what not, but it took a smart desi to circumvent all of them for long.
What happens to audits, inspections and K(Kick)YCs?

Manoj

6 years ago

Moderator/Editor,
How can you allow ads in your comments section -especially if that ad is for the very person / firm you are castigating in your article.

shankar

6 years ago

SEBI can only do is to BAN the ENTRY LOADS OF MUTUAL FUNDS AND BAN THE RURAL AND SMALL BUDGET PEOPLE FROM INVESTING IN MUTUAL FUND BY MAKING ANY KIND OF REGULATION ANY MOMENT.WHAT WILL PEOPLE DO.SO THEY INVEST IN MLM COMPANIES WHICH OFFERS GOOD RETURN.IN MUTUAL FUND ALSO THERE IS NO GAURANTEE OF FIXED RETURN BUT IN MLM CAMPANIES THERE IS FIXED RETURN.RISK IS IN BOTH THE INVESTMENTS.

Nagesh KiniFCA

6 years ago

It is in deed a sad commentary on our so-called Regulatory oversight.
If Stockguru can operate so blatantly flouting Sharekhan name who deny any relations. It will not take it long to go the Harshad Mehta/Ketan Parekh/CR Bansali way dragging many greedy gullibles.
It is rightly said "Duniya Jhukti hai, jhukanewalla chayehe" ! Enter Stockguru.

Nitin Gupta

6 years ago

Is SEBI sleeping ? Double your money in 12 months.

REPLY

Rajesh

In Reply to Nitin Gupta 5 years ago

What SEBI its always sleeping..

This idiot nation only allowing all fraud company's. Can this kind of fraud MLM company having the power to do this fraud with other nation...

Idiot indian goverment only allow all kind of business in this market , becaus of this only some middle and poor people coming for fraudlent.

regards
rajesh

Manoj

6 years ago

Here is one more example of someone openly offering portfolio management service without sebi registration:

http://www.ratechnicals.com/services.htm...

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