“Earlier while the banks used to give loans to entities with score of 600 out of 900 in the profile rating, now they mostly prefer a higher rating of around 800,” CIBIL managing director Arun Thukral said
New Delhi: Credit Information Bureau (CIBIL) on Wednesday said financial institutions are making more enquiries about credit profile of entities post the financial crisis, and about 20% of them are about auto loans, reports PTI.
“More than 20% of all enquiries made at CIBIL by credit institutions for assessing new loan applicants are for auto loans, with Delhi NCR contributing to over 34% of all auto loan enquiries (made in bigger cities),” CIBIL managing director Arun Thukral said.
He said after the 2008 financial crisis, banks have tightened their credit policies and have reduced their exposure specifically to unsecured debt like credit cards and personal loans.
The banks, Thukral said, are now more cautious in giving housing loans to customers with a lower credit rating.
“Earlier while the banks used to give loans to entities with score of 600 out of 900 in the CIBIL profile rating, now they are mostly preferring a higher rating of around 800,” Thukral said.
According to CIBIL data, the main drivers of credit growth post June quarter of 2009 has been in the secured loans segment like auto, two-wheeler and home loans.
The data also showed that auto loans have been on a rise in smaller cities in India over the past three years.
The smaller cities contribute to over 57% of all auto loan enquiries and have shown the highest growth in number of auto loan enquiries in last three years, CIBIL said.
It said that while overall number of auto loans disbursed is growing, the average loan size has also been on the rise since the past three years.
CIBIL, India's largest credit information bureau maintains credit information of more than 22 crore consumers and one lakh businesses. CIBIL score helps borrowers gauge their current financial position and improve their chances of acquiring a loan.
Indian Overseas Bank will have access to a full suite of solutions to support its global cross-currency payable and receivable flows through Deutsche Bank’s cross currency payment solution FX4Cash
Chennai: Public sector Indian Overseas Bank (IOB) has inked a memorandum of understanding with Deutsche Bank for using its cross-currency payment solution FX4Cash to offer cash management services across 125 local currencies in more than 160 countries, reports PTI.
“By using Deutsche Bank cross currency payment solution FX4Cash, Indian Overseas Bank will have access to a full suite of solutions to support its global cross-currency payable and receivable flows”, Indian Overseas Bank said in a statement.
“FX4 Cash” would enable the bank to gain efficiencies with a streamlined automated process for dealing and payments, it said.
“The platform provides fast and reliable execution of payments made through leading client access channels up to 125 local currencies via wire transfer, cheque across 160 countries”, it said.
“By leveraging the bank’s FX4Cash payments solution, we will not only gain new efficiencies, but we will also add value to the services we provide to our corporate and retail clients”, Indian Overseas Bank, CMD, M Narendra said.
Being fully integrated with Deutsche Bank’s electronic banking platform, Indian Overseas Bank would be able to initiate real-time trading activity on FX4Cash, providing additional efficiency and flexibility.
“We are pleased to expand our long-standing relationship with Indian Overseas Bank. FX4Cash will bring significant benefits to Indian Overseas Bank's service offering”, Deutsche Bank, Global Transaction Banking, Head-India, Anjali Mohanty said.
A SEBI probe into the case found that the fraudsters had tricked the investors into putting in their money with a promise of 18% dividend, although the real assured dividend was a minuscule 0.12%
New Delhi: Referring to Supreme Court’s order against the Sahara group as a benchmark for cases of unauthorised raising of money from public, the Securities and Exchange Board of India (SEBI) has barred seven persons and one company from the markets for ten years for their involvement in the estimated Rs 1,500 crore “Stock Guru” fraud, reports PTI.
Besides, these entities would also have to refund the entire amount collected fraudulently from gullible investors, along with an interest of 15% per annum, SEBI said in an order after investigating the case.
The order follows a SEBI probe into complaints received by it regarding one Lokeshwar Dev and his accomplice Priyanka Dev, both of whom used several aliases, fraudulently raising more than Rs1,500 crore through sale of preference shares of a company named SGI Research & Analysis.
Names used by them included Ulhas Prabhakar Khaire and Raksha J Urs, Siddharth Jay and Maya Siddharth Marathe, Dr Raj and Priya Zaveri, Dr Rakesh Kumar and Prachi Maheshwari.
A SEBI probe into the case found that the fraudsters had tricked the investors into putting in their money with a promise of 18% dividend, although the real assured dividend was a minuscule 0.12%.
Besides, the money might have mostly been collected in cash to avoid any regulatory glare, as SGI’s bank account had entries for a total amount of just about Rs44 lakh towards subscription of its shares by 162 persons.
However, this was enough for SEBI to enforce the norms that make any offer for subscription of shares or debentures to 50 or more persons a public issue, thus making it mandatory to seek SEBI’s approval for any such offer.
Passing the order, SEBI’s whole-time member Rajeev Agarwal said that the Supreme Court order of 31 August 2012 in Sahara case has “held that an offer to fifty or more persons becomes public issue” by virtue of the relevant provisions of the Companies Act and needs compulsory listing.
Two Sahara group companies were asked by the Supreme Court to refund the money collected from investors through certain convertible debentures, after the firms approached the apex court against a SEBI order in this regard.
“In the present (Stock Guru) case, convertible preference shares were offered and issued to more than 49 persons” and therefore it qualifies as a public offer, he said, adding that SGI offered “specified securities” to public but did not comply with the applicable SEBI Regulations and Companies Act.
Agarwal further noted that it is a settled position, in view of the Supreme Court order in Sahara case, that the power to administer proceedings in cases of public issue of shares or debentures lies with SEBI.
SEBI’s investigations found that SGI had invited investors to subscribe to its convertible preference shares through its office in Delhi, its agents and representatives, associate concern “stockguru.india” and its website.
SEBI said that “these securities were of face value Rs10 each and were offered and subscribed at an exorbitant premium of Rs1,500 per share”. However, the promised dividend of 18% was found to be on face value of Rs10 and not on exact per share price of Rs1,510.
“In other words, subscribers were promised dividend of Rs1.80 on investment of Rs1,510 (which translates into 0.119% real dividend). Further, there was no reference of redemption premium to be paid to the subscribers,” SEBI said.
“There was no economic justification of payment of so high premium with minuscule dividend...” it added.
SGI did not issue any share certificate to subscribers even on payment of money and made various “misrepresentations and false statements containing misleading and distorted information that the said convertible preference shares shall soon get listed after SEBI approval and the listing price would be around Rs2,000 per share”.
SGI was incorporated on 10 June 2010, while the issue of its convertible preference shares opened for subscription in October 2010 and continued till January 2011.
The investigations revealed that Stockguru.india and its partners had also floated “multi level marketing” or ‘Ponzi’ schemes and raised money from public through dubious schemes in different part of the country using different names.
The Economic Offences Wing, New Delhi has arrested them and they are investigating the frauds committed by them.
The entities used for the fraud included SGI Securities, G3 Commodities, SGI Beverages, SGI Buildtech, Coppertrenzs, DP Securities, DP Currencies, DP Commodities, DP Gems and Diamonds, DP Jewels, DP Enterprises and Stockguru India.
SEBI said that SGI and its promoters “made false and untrue, promises, declarations/statements containing misleading and distorted information with intention to lure innocent and gullible investors” and raise money from public in a fraudulent manner.
SEBI had issued show-cause notices in May 2012 to SGI, Lokeshwar Dev, Priyanka Saraswat Dev, Pradeep Sharma, Baldev Raj Sharma, Ramesh Sharma, Sanjeev Sharma and Sonia Sharma.
Pradeep Sharma contended before SEBI that he has “90% physical disability” and was threatened by Lokeshwar Dev to become a director he was himself cheated by him.
However, he could not provide any evidence, SEBI said.
Baldev Raj, Ramesh, Sanjeev and Sonia Sharma claimed that they were not the directors, but initial subscribers in the SGI and they had subscribed to only 10 shares each. However, SEBI found them to be instrumental in incorporation of SGI and “formulation of the plan of fraudulent public issue of SGI”.
“As regards the contraventions found in the present case for which SEBI is concerned, it is necessary to lift the corporate veil of SGI to reach out to all the persons involved and instrumental in the formulation of device and contrivance and making them answerable for the acts committed in furtherance of common design,” SEBI said.