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“The company is dealing in real estate and not in chit funds,” CEO Jyoti Narayan today said
Reacting to media reports of a chit fund fraud allegedly perpetrated at the company, PACL India Ltd (Pearls) group CEO Jyoti Narayan today said the firm is a real estate developer and never indulged in any type of chit fund business to make double or triple the money.
He strongly condemned the news published by a section of the media that claimed a chit fund fraud has been unearthed at the company and its directors are not traceable.
Narayan emphasised that all of PACL's directors are sitting in the company's offices in New Delhi and the company holds some of the biggest land and property assets in the country.
He said if there were any doubts of the conduct of the company directors, they could be contacted for clarification.
Narayan also assured all depositors that if anybody wants to take back their deposits against houses or any other cause, they should come forward with a request to take the money back.
He said the company is dealing in real estate and not in chit funds, with offices all over India. He also appealed to the public to contact only company-authorised people.
The RBI in its ‘Monetary Policy Statement for 2011-12’ had directing banks to cap their investments in the liquid schemes of mutual funds at 10% of their networth
The Reserve Bank of India on 5th July extended the 10% ceiling of bank investment in liquid schemes of mutual funds to include short-term debt funds.
The bank investment in such debt schemes of mutual funds with weighted average maturity of portfolio of not more than one year, would be subjected to the cap, RBI said in a notification.
"With a view to ensuring a smooth transition, banks which are already having investments in these (liquid) schemes of mutual funds in excess of the 10% limit, are allowed to comply with this requirement at the earliest but not later than six months from the date of this circular," it said.
The RBI in its 'Monetary Policy Statement for 2011-12' had directing banks to cap their investments in the liquid schemes of mutual funds at 10% of their networth.
"This is an effort to increase the purview of earlier circular. RBI is focusing on stability of banking and mutual fund industry," SMC Global Securities Strategist & Head of Research Jagannadham Thunuguntla said.
The RBI said same money was circularly moving between banks and the debt-oriented mutual funds (DoMFs), which could potentially lead to systemic risk.
Banks normally put in their surplus funds in liquid schemes of mutual funds, which invest in debt securities having maturing within 90 days. Also short term debt schemes of duration of less than a year gives banks higher returns within a short period. In turn, DoMFs invest heavily in certificates of deposit (CDs) of banks.
"Such circular flow of funds between banks and DoMFs (debt-oriented mutual funds) could lead to systemic risk in times of stress or liquidity crunch. Thus, banks could potentially face a large liquidity risk," the RBI had said.
Experts said the fund flow into the over 7.43 lakh crore mutual fund industry, which is still battling with the entry load ban of 2009, could further slowdown with the implementation of this circular.
The aim of DoMFs is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, government securities and money market instruments.