Insurance
Haryana blacklists SBI Life for delaying annuity payments

Haryana blacklisted SBI Life Insurance Company and cancelled the bid awarded to it for delaying the entire process of distribution of annuity to the land owners

 

Chandigarh: SBI Life Insurance Company has been ‘blacklisted’ by the Haryana government for allegedly delaying the process of distribution of annuity to land owners under the resettlement and rehabilitation (R&R) policy of the state government, reports PTI.

 

While giving this information in a release, an official spokesman of the state finance department said, “Haryana government has blacklisted SBI Life Insurance Company Limited and cancelled the bid awarded to it for delaying the entire process of distribution of annuity to the land owners under the state’s R&R policy.”

 

He further said stringent actions, including debarring SBI Life Insurance from doing any further business with the state or any of its department could also be taken as per the law.

 

The official spokesman said that an expression of interest (EOI) was issued in February 2011 inviting bids from insurance companies or Banks for purposes of providing services for disbursement of annuity to the land owners under R&R policy of the state government.

 

The bid-cum-tender document was submitted by SBI Life Insurance on 31 March 2011.

 

He said that after receipt of the bid documents, several rounds of negotiations and discussions were held with respect to various stipulations and conditions stated in the draft service level agreement (SLA) including the obligation of the noticee as service provider with respect to collection and validation of data of the beneficiaries.

 

The spokesman further said decisions regarding the contract were taken by the government on 25 July 2011 and 11 August 2011 for making payment of annuity under R&R policy by allocation of work amongst the selected insurance companies. A letter of intent (LoI) was issued to noticee on 6 September 2011.

 

The said LoI was also issued on specific and unambiguous stipulation that the LoI would be subject to execution of service level agreement (SLA).

 

This was expressly communicated to the noticee that the government reserved its right to withdraw the said LOI in the event of failure of noticee to execute the SLA, he added.

 

He said that the state government in performance of its obligation as expressed under the LOI duly advanced payment in favour of noticee towards 50% purchase consideration and allocated area of operation to noticee.

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SEBI slaps Rs2 lakh fine on Minal Industries in bonus shares case

SEBI slapped a fine of Rs2 lakh on Minal Industries for the delay in notifying the stock exchanges about its proposal for declaration of bonus shares and Rs1 lakh fine for failing to disseminate price sensitive information on a continuous and immediate basis

 

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a total penalty of Rs2 lakh on Minal Industries for alleged violations of the insider trading norms regarding its proposed issue of bonus shares during the year 2010, reports PTI.

 

As per the order, SEBI slapped a fine of Rs2 lakh on Minal Industries for the delay in notifying the stock exchanges about its proposal for declaration of bonus shares.

 

SEBI imposed another Rs1 lakh fine on the company for its failure to “disseminate price sensitive information on a continuous and immediate basis”, as required under the norms.

 

The regulator said it is imposing a “consolidated penalty of Rs2 lakh on Minal Industries Ltd” as per the provisions.

 

SEBI said that the agenda for meeting of the company’s board to discuss the bonus issue of shares was circulated along with notice to all the directors on 1 July 2010.

 

However, it was only on 6 July 2010 that the company informed BSE that a meeting of board of directors would be held on 9 July 2010 to consider bonus issue of equity shares.

 

As per the norms, a company is required to give notice simultaneously to the stock exchanges in case the proposal for declaration of bonus is communicated to its board of directors as part of the agenda papers.

 

Further, the rules also mandate that all the listed companies have to disseminate price sensitive information on a continuous and immediate basis.

 

“Considering the facts and circumstances of the case and the evidence made available on record as discussed... it can be concluded that the noticee (Minal Industries) has not complied with the provisions of Prohibition of Insider Trading regulations.” SEBI said.

 

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COMMENTS

Vaibhav Dhoka

4 years ago

The penalty is too MEAGER.

Vaibhav Dhoka

4 years ago

The penalty is too MEAGER.

SEBI drops charges against individual in Bank of Rajasthan case

SEBI said allegations of breach of various regulations by Dinesh Shyamsing Saini could not be established and therefore he is been absolved of the charges

 

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed off a case against an individual for his alleged involvement in irregularities on part of Bank of Rajasthan’s (BoR) former promoters, reports PTI.

 

SEBI said allegations of breach of various regulations by Dinesh Shyamsing Saini "do not stand established" and therefore he is been absolved of the charges.

 

Saini had served as director of five companies -- 21st Century Entertainment, Ahmednagar Investments, Cyber Info Zeeboomba.com, EDC Securities and Giriganga Investment -- alleged to be promoter group companies of BoR.

 

SEBI had alleged that incorrect disclosures were made by the promoters of BoR and their persons acting in concert (PACs) between June 2007 to December 2009.

 

However, in its order issued yesterday, SEBI said Saini was not the director of the companies during the period for which the probe was conducted by the regulator.

 

"...transactions by the five companies were made upto March 2009 and the noticee was appointed director of the company on 19 December 2009 i.e., much before his appointment as a director of the five companies," SEBI said in its order issued yesterday.

 

A probe by SEBI had found that BoR's then promoters, led by Pravin Kumar Tayal, along with some companies that were connected to him and his relatives, by way of their continuous disclosure publicly announced that their stake had come down from 44.18% at the end of three months period ended June 2007 to 28.6% as on quarter ending December 2009.

 

However, in reality, the holding of the promoters increased with the active collusion of front entities.

 

Shareholding of promoters of BoR with PACs had increased from 46.8% in June 2007 to 63.15% in December 2009.

 

BoR was later acquired by ICICI Bank.

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