Midcap crash: SEBI says ban on Ramkripa Securities to continue

The probe relates to a sharp plunge of 20%-26% in the shares of Parsvnath, Tulip Telecom, Glodyne Technoserve and Pipavav Defence & Offshore on 26th July on the BSE and NSE

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has said the restraining order on Ramkripa Securities, relating to the plunge in mid-cap stocks of four companies, would continue as the entity failed to give plausible explanation for its alleged trades, reports PTI.


Last year, the market regulator through an interim order had barred Ramkripa Securities from the securities market, following an initial probe into the steep decline in share prices of mid-cap stocks of Parsvnath, Tulip Telecom, Glodyne Technoserve and Pipavav Defence and Offshore Engineering.


“...the submissions of the noticee (Ramkripa Securities) do not give any plausible reason/explanation, at this stage, for its trades in the scrip of Glodyne as alleged in the interim order,” SEBI said in its order dated 18th January.


“I am of the considered view that no intervention is called for, at this stage, in either vacating the interim directions or modifying it, with respect to Ramkripa Securities Pvt Ltd,” SEBI’s whole-time member Rajeev Kumar Agarwal said.


The regulator said the probe in the matter is going on and appropriate action would be taken after its completion.


The probe relates to a sharp plunge of 20%-26% in the shares of on 26th July on the BSE and NSE.


These stocks witnessed sharp intraday price volume movement even though no major corporate announcements or price sensitive information was disclosed to the exchanges by these companies during the previous 15 days.


RBI relaxes norms to utilise foreign currency account balance

RBI said the instructions would also apply to the resident foreign currency domestic and diamond dollar accounts

Mumbai: Relaxing the norms for exporters, the Reserve Bank of India (RBI) dispensed with the condition of fully utilising exchange earner’s foreign currency (EEFC) balance before accessing the market for purchasing foreign exchange, reports PTI.


The decision, RBI said, was being taken to remove operational difficulties faced by the account holders and the banks.


“It has been decided to dispense with the stipulation... that EEFC account holders henceforth will be permitted to access the forex market for purchasing foreign exchange only after utilising fully the available balances in the EEFC accounts,” the RBI said in a notification.


RBI said the instructions would also apply to resident foreign currency (RFC) domestic and diamond dollar accounts.


An EEFC is an account maintained in foreign currency with a bank dealing in foreign exchange.


Ghost of GAAR buried: Chidambaram

Last week, Chidambaram had announced that implementation of GAAR, which would have given unbridled powers to taxmen to check evasion of taxes by foreign investors, has been postponed to 2016

Hong Kong: India has buried the ‘ghost’ of general anti-avoidance rules (GAAR), Finance minister P Chidambaram said on Tuesday asserting that there is no threat of a rating downgrade in view of key economic decisions like allowing foreign direct investment (FDI) in multi-brand retail and hiking fuel prices, reports PTI.


He said there is revival of investor interest in India as a result of a number of measures taken by the government since September.


Chidambaram was also hopeful that fiscal deficit will be contained within the targeted 5.3% of the GDP this fiscal and trimmed to 4.8% in the next. Growth is likely to climb to 6%-7% from 5.7% expected in the current year, he said.


“There is a universal acknowledgement that we have handled the GAAR situation fairly effectively and buried the ghost that GAAR will be some kind of a monster,” he told PTI in an interview.


Here on a day’s visit for an investor conference, the finance minister said as expected investors raised issues relating to the controversial provision of GAAR that was introduced in the 2012-13 Budget by his predecessor.


The GAAR gave unbridled powers to taxmen to check evasion of taxes by foreign investors that created huge apprehensions among investors.


Last week, Chidambaram announced that GAAR implementation has been postponed by two years to 2016.


“On specific questions on GAAR and I took some time in explaining all the measures we have made to GAAR and told them how market has received it very well here. There is universal acknowledgement that we have handled the GAAR situation fairly effectively and buried the ghost that GAAR will be some kind of a monster,” he said.


Kicking off his campaign to woo investment, Chidambaram met over 200 top investors at the “India for Investment Conference” organised by the Citibank and BNP Paribas.


He made a strong case for their investment assuring that all their concerns were being addressed and that the government has taken all measures including to contain the fiscal deficit.


“It is a very well attended meeting. Virtually everybody who is anybody in the financial sector was here including wealth funds, sovereign funds, banks asset management companies. It gave me an opportunity to explain the economic situation in India, the steps we are taking to put the economy on high growth path,” he said.


Chidambaram, who will be in Singapore tomorrow on a similar mission, said India continues to post growth even now.


“We are undeniably growing faster,” he said pointing that out only China and Indonesia are ahead of India.


“But this growth is not sufficient for us. We need to accelerate it. So I told them steps we are taking to accelerate growth,” he said.


He said the first step in that direction is fiscal consolidation and commitment to the path of fiscal prudence.


“At that at the end of this year, we will achieve the target of 5.3% of fiscal deficit and next year I will budget for fiscal deficit no more than 4.8%,” he said.


He said he has also explained to the international investors the number of measures taken in this regard.


“I thought it was a fruitful conference. I could get a sense of the concerns of investors. Happily many of the concerns were addressed in the last three of four months,” he said.


Chidambaram said the investors were concerned about the rating down grade.


“I think the steps we have taken assured everybody that there will not be a rating down grade. They were concerned about our ability to stay the course after we announced the decisions. They are happy we stayed the course after announcing FDI in multi brand retails,” he said.


He said the investors and rating agencies were concerned that we will not correct fuel prices. “But even the small steps we have taken has given them confidence that we will correct the fuel prices. I think each of the measures has boosted their confidence in the Indian economy,” he said.


While the government had in September last capped the supply of subsidised cooking gas and raised the price of petrol and diesel steeply, last week it had virtually begun the process of deregulation of diesel price.


On GDP growth projections, he said “projections I have received is that economy will grow above six percent (in 2013). My own assessment is it will be between 6% and 7%. Will be happy if it is closer to 7% percent but we should be happy if it is 6% to 7% “.


On revival of investor interest, he said, “People are coming to us for inquiries, approaching banks. There is a clear revival. I am not saying there is investment taking place but there is a revival of interest”.


“There is revival of confidence that we will stick to our promises to contain the fiscal deficit and lowering it by 0.6% every year by the next five years,” he said.


The confidence is showing up even in the bottom rung of many companies. This quarter results of many companies are encouraging in some sectors demand for goods quite high. This means people are willing to buy more, he said.


“Next year we should see 6% and 7%. If investment gathers pace, year after we should get back to our growth rate of 8%. India's potential growth rate is above eight percent above. We have done it before. We will do it again,” he added.




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