Investor Issues
Investors can get monetary relief during claim proceedings: SEBI

Investors with claims of less than Rs10 lakh, would get certain amount during their claim proceedings from the investor protection fund

Market regulator Securities & Exchange Board of India’s (SEBI) said it will give monetary relief to investors having claims up to Rs10 lakh, during the course of proceedings from the Investor Protection Fund (IPF) of stock exchanges.

 

According to a release, SEBI said, the Investor Grievance Redressal Committee (IGRC) in the stock exchange would be empowered to look into admissibility of claims in addition to conciliation process. If IGRC concludes that the complaint cannot be resolved through conciliation process, then the stock exchange would block the claim amount admissible to the investor from the deposit of the concerned member. The member would get seven days to pursue next arbitration. If the member does not opt for arbitration, then the stock exchange would release the blocked amount to the investor after the seven day's timeframe.

 

SEBI said, in case, the member opts for arbitration and the claim value admissible to the investor is not more than Rs10 lakh, the monetary relief from IPF would be given to the investor as mentioned below:
 

i. 50% of the admissible claim value or Rs75,000, whichever is less, shall be released to the investor from IPF of the stock exchange.

ii. In case the arbitration award is in favour of the investor and the member opts for appellate arbitration then a positive difference of, 50% of the amount mentioned in the arbitration award or Rs1.5 lakh, whichever is less and the amount already released to the investor at clause (i) above, shall be released to the investor from IPF of the stock exchange.

iii. In case the appellate arbitration award is in favour of the investor and the member opts for making an application under section 34 of the Arbitration and Conciliation Act, 1996 to set aside the appellate arbitration award, then a positive difference of 75% of the amount determined in the appellate arbitration award or Rs2 lakh, whichever is less and the amount already released to the investor at clause (i) and (ii) above, shall be released to the investor from IPF of the stock exchange.

 

Separately, SEBI said, in order to address the complaints regarding 'unauthorised trades', the stock exchanges would ensure that the contract note issued by member for transactions owing to non-compliance of margin calls would bear a remark specifying the same. The member would maintain a verifiable record of having made such margin calls and that the clients have not complied with the same, the market regulator said.

 

SEBI has also asked stock exchanges to set up facilitation desks at all investor service centres to assist investors in obtaining documents or details from stock exchanges wherever so required for making application to IGRC and filing arbitration.

 

The market regulator has also reduced the amount payable by investor for appellate arbitration to Rs10,000 from Rs30,000.

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About 30% of MPs and MLAs are involved in criminal cases, of which 14% are serious ones

An analysis by ADR and NEW reveals that most political parties have been continuously doling out election tickets to candidates who have declared charges of promoting enmity between religious groups, destruction of religious places and committing acts intended to hurt religious sentiments

During the Lok Sabha elections of 2009 and various State assembly elections since 2008, out of the 4,807 elected Members of Parliament (MPs) and Members of Legislative Assembly (MLAs), 1,460 or 30% have declared criminal cases against them, out of which 688 or 14% have been declared serious criminal cases. However, only 24 out of the 4,807 MPs and MLAs admitted that they have been convicted, at some point in a court of law, reveals an analysis by Association for Democratic Reforms (ADR) and National Election Watch (NEW).

 

Were the staggering figures the reason behind the Union Government to bring out an Ordinance to protect convicted MPs and MLAs? Earlier this week, in order to nullify the Supreme Court judgement that erased statutory protection earlier available to MPs and MLAs, the government brought out an ordinance. In its judgement on 10th July, the Apex Court had said if an MP or MLA was/is convicted in a serious crime and sentenced to two years imprisonment or more, he/she would be disqualified immediately.

 

Calling the move to bring out an ordinance by the Cabinet as 'making convicted law-makers as show-pieces of white elephants', noted Right to Information (RTI) activist Subhash Chandra Agrawal said, "This means that the nation will have to bear uselessly on the heavy dose of privileges available to these white elephants from now onwards to be kept as show-pieces in the temples of democracy. The Union Cabinet has left no stone unturned to prove that India has a unique type of democracy, where it is a system for the politicians, by the politicians and of the politicians. President Pranab Mukherjee should rise to the occasion by refusing to sign anti-public Ordinance."

 

Replying to Mr Agrawal's email Fali S Nariman, senior advocate to the Supreme Court and president of the Bar Association of India, said it must be checked first if there is any precedent of a Bill pending in Parliament which then got referred to a Select Committee and, then during a recess, got pushed through as an Ordinance.

 

"The Ordinance route versus Bill-in-Parliament-route is an either/or exercise. Otherwise the Executive would be doing indirectly what it could not do directly: a pending Bill referred to a Select Committee cannot be converted into an Ordinance since the wish of the House is that the pending Bill requires maturer consideration before being enacted as law. The effect of an Ordinance under Article 123(2) is that it ’shall have force and effect as an Act of Parliament’–something totally inconsistent with the existing fact viz a pending Bill already referred to a Select Committee for further consideration," Mr Nariman said.

     

Coming back to the elected representatives, as per the analysis by ADR and NEW, out of the total 47,389 candidates who have contested various elections since 2008, only 155 or 0.3% have declared, in their affidavits, that they have been convicted at some point in a court of law.

 

However, not all convictions lead to disqualification of sitting MPs or MLAs. Only convictions related to the cases registered under those violations mentioned in sections 8(1), 8(2) and 8(3) come under the purview of the Supreme Court judgement.

 

According to the report, it is possible that a candidate contesting an election may be refraining from declaring conviction in his/ her affidavit once an appeal, in a higher court, is admitted challenging the conviction. "In such a case this candidate may merely mention that an appeal is pending in a court and may not declare the conviction in the appropriate section of the affidavit. It is also possible that candidates may be suppressing or hiding the conviction altogether because as of now there is no reliable mechanism in place to scrutinise these affidavits," the report says.Sitting MPs with cases under IPC 153A:
 

11 Sitting MPs have declared cases under IPC Section 153A
 

9 out of the 11 MPs are from the Lok Sabha and 2 are members of the Rajya Sabha
 

Sitting MLAs with cases under IPC 153A:
 

26 Sitting MLAs have declared cases under IPC Section 153A
 

Sitting MPs with cases under IPC 295A:
 

3 Sitting MPs have declared cases under IPC Section 295A
 

(There may be an overlap between MPs and MLAs with cases under IPC 295A, IPC 295 and IPC 153A i.e. they are not mutually exclusive)
 

Sitting MLAs with cases under IPC 295A:
 

9 Sitting MLAs from various states have declared cases under IPC Section 295A
 

(There may be an overlap between MPs and MLAs with cases under IPC 295A, IPC 295 and IPC 153A i.e. they are not mutually exclusive)
 

Sitting MPs with cases under IPC 295:
 

3 Sitting MPs have declared cases under IPC Section 295
 

(There may be an overlap between MPs and MLAs with cases under IPC 295A, IPC 295 and IPC 153A i.e. they are not mutually exclusive)
 

Sitting MLAs with cases under IPC 295:

 

5 Sitting MLAs have declared cases under IPC Section 295
 

(There may be an overlap between MPs and MLAs with cases under IPC 295A, IPC 295 and IPC 153A i.e. they are not mutually exclusive)
 

Partywise MPs and MLAs with cases under IPC 153A:
 

Among all parties:

14 BJP MPs and MLAs (7 MPs and 7 MLAs);

5 AIMIM MPs and MLAs (1 MP and 4 MLAs);

4 MPs and MLAs from SP (1 MP and 3 MLAs);

4 MLAs from TRS;

2 MLAs from JD(U);

1 MLA each from INC, DMK, RJD, PMK have declared cases under IPC Section 153A.

1 MP each from TDP and VCK has also declared cases under Section 153A
 

Statewise MPs and MLAs with cases under IPC 153A:
 

12 Uttar Pradesh MPs and MLAs (4 MPs from Lok Sabha, 1 MP from Rajya Sabha and 7 MLAs);
 

10 Andhra Pradesh MPs and MLAs (1 Lok Sabha MP, 1 Rajya Sabha MP and 8 MLAs);
 

4 MLAs from Bihar;
 

4 Karnataka MPs and MLAs (2 MPs and 2 MLAs);
 

3 Tamil Nadu MPs and MLAs (1 MP and 2 MLAs) have declared cases under IPC Section 153A
 

Partywise MPs and MLAs with cases under IPC 295A:
 

Among all parties:
 

5 BJP MPs and MLAs (1 MP and 4 MLAs);
 

5 AIMIM MPs and MLAs (1 MP and 4 MLAs) have declared cases under IPC Section 295A.
 

(There may be an overlap between MPs and MLAs with cases under IPC 295A, IPC 295 and IPC 153A i.e. they are not mutually exclusive)
 

Here is the list of MPs and MLAs who have declared convictions in their affidavit…

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COMMENTS

Vaibhav Dhoka

4 years ago

The easiest way for congress is scrap Supreme court.It will take care of Lalu's membership of parliament.

SuchindranathAiyerS

4 years ago

It is hard to believe that only 30% of India's law makers are criminal.An absolute majority is more probable.

Parimal Shah

4 years ago

Let us vote against 3C - Criminals, Corrupt, and communal
-Parimal

Ramesh Iyer

4 years ago

It is a pity our Constitution is mum on such crucial provisions. With Indian politics being dominated by muscle &/ money power, besides dynastic rule, barring those with criminal backgrounds ought to have been enshrined in the Constitution, instead of the present govt having to bring in an ordinance to appease certain allies. It's a travesty of democracy !

Rekha Jagannath

4 years ago

It is really senseless to go by Supreme Court statement on 'Aadhaar'. Aadhar is an ICT effort to bring an identity to all people of India.Unorganised sector could be turned around to organized sector. it could be instrumental to inclusive dvelopment by being used in PDS, subsidies and T&D to prevent and detect leakage. in fact corruption could be reduced in several areas with Aadhaar systematic use.Security lapses could be detected and so reduced.Medical facilities could be accessed more systematically. Elections could be more systematic and corruption free.Banks could penetrate into all rural areas.So people should prefer to use Adhaar to make it a success, no matter what. Otherwise a very good solution will bite the dust alas!

Oil subsidy alone could push fiscal deficit over 5%, says Fitch Ratings

Adverse  currency  movement  can  widen  the  fiscal  deficit  through  higher  subsidy  outgo  if domestic oil and fertiliser prices are not adjusted to reflect the higher import cost, says Fitch Ratings in its research note

Rupee depreciation could increase oil subsidy by 0.1% to 0.4% of GDP in FY14. The oil subsidy alone could push fiscal deficit in excess of 5.0% from 4.8% (budget estimates) in FY14, points out Fitch Ratings in its research note. The under recovery of oil marketing companies (OMCs) will increase by Rs548 billion annually if the Indian crude basket price rises by Rs1,000/bbl. This would translate into an increase of Rs340 billion in the government’s oil subsidy burden.

 

Although the Indian crude basket price has increased only marginally in US dollar terms (7%), the sharp rupee depreciation has significantly increased the price in rupee terms (28%).  Consequently, diesel  under  recovery  increased  to  Rs14.50/litre,  effective  16 September 2013, despite a  rise of  Rs0.5/litre  in  its monthly  retail selling price. Diesel under recovery during the second fortnight of May 2013 was Rs3.73/litre.  Thus, the daily under recoveries of OMCs increased to Rs4.86 billion on 16 September 2013 from Rs2.52 billion in May 2013. The under recovery problem of OMCs is shown in the following chart.

 

 

Adverse  currency  movement  can  widen  the  fiscal  deficit  through  higher  subsidy  outgo  if domestic oil and fertiliser prices are not adjusted to reflect the higher import cost, says Fitch Ratings in its research note

 

The product-wise under recovery in the oil sector as calculated by Fitch Ratings is shown in the table below:

 

 

Fitch Ratings observes that soft international prices will help contain fertiliser subsidy. Global fertiliser prices declined  in  the  range  of  11.3%  year-on-year  (rock  phosphate)  to  23.9%  year-on-year  (urea)  over April-August 2013. Therefore, despite rupee depreciation, the subsidy on imported fertiliser is unlikely to be higher than the FY14 budgeted amount. Overall, the decline in global fertiliser prices augurs well for fertiliser subsidy, and consequently fiscal slippage.

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COMMENTS

S V TANEJA

4 years ago


Our Minister has suggested that the nation would save upto $5 billion if we start observing one day in a week as “public transport day’ and car pooling.lets take a futuristic view and imagine the quantum of import bill in 2020 of crude in relation to CAD. We should keep in mind the factwhat is mentioned in the Metros that this much lacs of people use the metro daily. It means that the nation is already saving lot of petroleum which had they used for buses/vehicles/two or three wheelers. Metro is already accepted as not only fast mode of conveyance but also convenient mode of transport. The country needs to explore alternate mode of transport. The government should bring changes in the Railways as faster trains, more trains, more facilities besides ensuring punctuality. This will encourage saving of petrol both being consumed in travelling by buses or air. The people which only contemplated travelling by air have worldwide started thinking of using faster and punctual rail as a equally good option. There are numerous examples of preferred rail journey from UK to France and faster trains in China which save substantial time, money, connectively and brings more productivity. Thinking of the billions the nation would save 5 to 10 years from now, we should take immediate measures to harness alternates of petrol as rail and use of hydrogen in cars.

REPLY

Evanylla Marbaniang

In Reply to S V TANEJA 4 years ago

I strongly agree with you!

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