Consumer Issues
JetLite to pay Rs45,000 for loss of valuables in baggage

Pulling up the airline for its careless attitude in handling the flier's grievance, the Consumer Forum held that once the baggage was handed over to JetLite, the carrier was responsible for its safety and security

New Delhi: Low-fare airline JetLite has been ordered by a consumer forum to pay Rs45,000 to a passenger as compensation for the loss of valuables from his baggage during transit from Guwahati to Delhi, reports PTI.

 

Pulling up the airline for its “careless attitude” in handling the flier’s grievance, the South West District Consumer Disputes Redressal Forum held that once the baggage was handed over to JetLite, it was responsible for its safety and security.

 

“Once the bag is submitted by a passenger to the custody of the opposite party (airline), it is responsible for its safety and security. In the instant case, it is apparent that during the custody of the opposite party, the bag of the complainant was unlocked and the valuables were removed from it.

 

“Complainant has suffered financial loss and harassment due to careless attitude of opposite party which amounts to deficiency in service and he is entitled to be reasonably compensated,” a bench presided by Narendra Kumar said.

 

It directed the airline to pay the passenger Rs25,000 for the loss of valuables and Rs20,000 as compensation.

 

The forum’s order came on the plea of Delhi resident Girish Kumar Jain who had said that he had travelled by JetLite from Guwahati to Delhi on 12 June 2008 and on arriving he found his bag was damaged and valuables, including an expensive camera, were missing.

 

JetLite, now known as JetKonnect, in its defence had said that as per the conditions of carriage printed on the ticket valuables are to be carried in the cabin luggage.

 

The forum rejected the contention saying the conditions on the ticket are “only an advisory” and “it is not mandatory” that valuable articles have to be kept in the cabin luggage.

 

“We are not convinced with the defence taken,” it said.

 

It also expressed surprise that JetLite took no action on Jain’s complaint.

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Consumer affairs ministry opposes tax on commodity derivatives

Consumer affairs minister KV Thomas said that a tax on commodities derivatives trade, on the lines of securities transaction tax or STT, will hamper the growth of the organised commodity market in India

New Delhi: Amid demand from some banks to impose a tax on commodity derivatives in the forthcoming Budget, food and consumer affairs Minister KV Thomas has written to the finance minister saying that any such move will distort the nascent market, reports PTI.

 

Last year too, he had requested the then finance minister Pranab Mukherjee not to reopen the old proposal made in Budget 2008-09 to levy a 0.017% tax on commodity derivatives (Rs17 on Rs1 lakh worth transaction).

 

According to sources, Thomas has written to finance minister P Chidambaram saying his ministry would “like (him) to defer, if there is intent to introduce commodity transaction tax (CTT) on the commodity derivatives in the ensuing Finance Bill 2013”.

 

The minister said that a tax on commodities derivatives trade, on the lines of securities transaction tax (STT), will hamper the growth of the organised commodity market in India.

 

Introduction of CTT will distort the market, sources added.

 

In the letter, the minister has also made a reference to the views of former consumer affairs minister Sharad Pawar and Prime Ministers Economic Advisory Council (PMEAC) chairman C Rangarajan, who had opposed CTT when it was announced in the 2008 Budget.

 

The ministry of consumer affairs regulates commodities market through the Forward Markets Commission. There are five national and 16 regional commodity exchanges.

 

Thomas' observation came in reaction to recommendations made by some banks in the pre-Budget discussions with the finance minister that the government should consider either imposing CTT or abolition of STT on equity markets to bring both markets at par.

 

The CTT of 0.017% on commodity derivatives was proposed in the 2008-09, but was not operationalised. The proposal was kept in abeyance following apprehensions aired by Pawar and the PMEAC.

 

Commodity players and industry chambers like Assocham are also opposed to the introduction of CTT. They fear it would divert hedgers and speculators to rampant “dabba trading” (illegal trading). The tax would also impact the volume and liquidity of commodity exchanges.

 

They said while stock markets channelize investments for capital formation, commodity markets are price discovery and risk management platforms.

 

The commodity, before it comes for trading on exchange platforms, is already taxed to the tune of almost 12%, with levies such as mandi tax, cess, handling costs and warehousing charges, they added.

 

The total turnover of the commodity futures market, which has been in existence since 2003, has declined marginally to 129.6 lakh crore in the April-December period of the current fiscal.

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SEBI to strengthen surveillance system

SEBI has begun a process to rope in an IT service provider for monitoring of its integrated market surveillance system network through a network monitoring centre that would operate on a 24x7 basis

New Delhi: With an aim to deploy latest technology and know-how to tackle ever-changing nature of threats to investor interest, market regulator Securities and Exchange Board of India (SEBI) is looking to overhaul its market surveillance and network monitoring systems, reports PTI.

 

In this regard, the capital markets regulator SEBI has begun a process to rope an IT service provider for monitoring of its integrated market surveillance system (IMSS) network through a network monitoring centre that would operate on a 24x7 basis.

 

The IT service provider would be contracted by SEBI for a period of three years, which can be later extended for six years, a senior official said.

 

SEBI undertakes its market surveillance functions through IMSS, which went live in 2007 and collects data for suspicious market activities through multiple sources, including its network systems at stock exchanges and depositories.

 

The IT service provider would need to monitor this network on a daily basis and would be required to have a highly competent Security Monitoring Operations Centre, which would operate on a 24/7 basis.

 

This Security Monitoring Operations Centre would be used for remote monitoring of security and surveillance infrastructure of IMSS, provide periodic security status reports to SEBI and real-time status reports through an online facility, and propose changes in light of latest security best practices and latest security threats.

 

SEBI would consider only those companies for the job that have been in the business for at least ten years, have had a minimum net worth of Rs100 crore in last three years and a workforce of 25,000 personnel or more.

 

The service provider would need to deploy its qualified resident engineers at SEBI's IMSS data centres, as also for managing various other network systems.

 

The move is aimed at helping SEBI in its efforts towards a stronger continuous monitoring of manipulation attempts in the stock market and analysis of daily transaction data.

 

The IMSS system has also proved very useful in situations of high volatility, and the times when the attention is mostly focussed on major market-moving developments.

 

The market manipulators tend to be more active in these situations, thinking that the oversight machinery would be mostly focussed on monitoring issues like risk-management systems and proper settlement of payment obligations.

 

However, the IMSS keeps working on an auto-pilot like basis and an upgraded system would further help in the surveillance activities of the regulator.

 

The system collects transaction and master data from stock exchanges and depositories on a daily basis to generate alerts for predefined market manipulation scenarios.

 

It also provides data analysis and benchmarking tools, which are used in various policy decisions of the SEBI.

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