Nifty, Sensex rise on low volumes – Monday closing report
Nifty is going strong and will start to weaken on a close below 7,851
We had mentioned in Friday’s closing report that Nifty, Sensex may remain listless and that Nifty will head higher if it closes above 7,900. The market was bullish on Monday after last week’s listless trading and the major indices closed with small gains of upto 1%. The trends of the major indices are given in the table below:
In corporate news, the shares of SMS Pharmaceuticals climbed 11.8% in early trade Monday on getting approval from the US health regulator for one of its unit in Andhra Pradesh. "SMS has received approval from the US Food and Drug Administration (USFDA) for manufacturing facility (unit 7) located at Kandivalasa village, Pusapatirega Mandal, Vizianagaram district, Andhra Pradesh," says the Telangana-based pharma company in its filing. The US health regulator had conducted inspection of this plant in third week of April. The shares of the company closed at Rs132.00, up 7.32% on the BSE.
Jaiprakash Associates Ltd: Aditya Birla flagship UltraTech, Dalmia Bharat backed by private equity investor KKR and Shree Cement are among prospects approached to take over the Jaypee Group's cement business, according to media reports.
Tube Investments of India Ltd : Chennai-based Tube Investments of India Ltd will sell 14 per cent of Cholamandalam MS General Insurance to its joint venture partner Mitsui Sumitomo Insurance Company of Japan for Rs882.67 crore, said a communication from Tube Investments to the Bombay Stock Exchange.
Bosch India Ltd: Bosch Limited has announced that with a view to adjust production to meet the demand for products and to avoid unnecessary build-up of inventory, it is proposed to suspend all manufacturing operations at their Jaipur Plant from 26 December 2015 to 2 January 2015.
HT Media Ltd: HT Media's arm, HT Overseas Pte Ltd is acquiring 5% stake in Singapore-based news agency Dealstreetasia Pte Ltd for an undisclosed amount. 
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given below:


PACL which has raised Rs55,000 crores, seeks stay from Delhi HC against SEBI’s recovery order
PACL, despite its similar request pending before the Supreme Court, has approached the High Court seeking stay on SEBI's proceedings to recover the money
PACL Ltd, formerly known as Pearl Agrotech, has appealed to the Delhi High Court for a stay order against recovery proceedings initiated by market regulator Securities and Exchange Board of India’s (SEBI) against the company, says a report.
According to the report from CNBC TV18, the market regulator had maintained that since PACL's similar request is pending before the Supreme Court, there was no need for the company to approach the High Court. The next hearing of the case in Delhi HC is scheduled on 4th January, the report says. On the other hand, PACL told the HC that SEBI wants the money to be transferred to itself and the market regulator cannot act like an intermediately. 
Earlier, SEBI, as part of its recovery proceedings, attached all bank and demat accounts, mutual fund portfolios of PACL and it eight directors and promoters. In a release, SEBI said, the recovery proceedings have been initiated for their failure to comply with its order issued on 22 August 2014 directing, PACL and its directors and promoters to wind up the schemes, and refund Rs49,100 crore to the investors within three months from the date of the order. This amount is excluding further interest and all costs, charges and expenses incurred in the recovery proceedings.
According to SEBI, the amount due to investors of PACL would be over Rs55,000 crore. This  includes promised returns, further interest, all costs, charges and expenses incurred in respect of all the proceedings taken for recovery of Rs49,100 crore from PACL. 
The mobilisation of funds by PACL traces back prior to 1997. Upon receipt of a complaint, SEBI on 30 November 1999 and 10 December 1999 issued letters asking PACL to comply with the provisions of the collective investment scheme (CIS) Regulations. 
PACL challenged these letters before the High Court of Rajasthan in December 1999, claiming that its scheme does not fall under the definition of CIS as defined under the CIS Regulation and SEBI Act. PACL also challenged the constitutional validity of the CIS Regulations. 
The Rajasthan High Court on 28 November 2003, held that PACL's schemes were not CIS as defined under Section 11AA of the SEBI Act. The HC also quashed SEBI's letters issued to PACL. 
SEBI filed an appeal before the Supreme Court against the order of Rajasthan HC. The SC on 25 February 2013, while allowing the appeal upheld the constitutional validity of CIS Regulations, and directed SEBI to investigate the matter and take appropriate actions. 
After conducting an inquiry, SEBI on 22 August 2014, issued an order directing PACL, its promoters and directors to wind up all the existing CIS and refund the monies collected by the company to investors as per the terms of offer within a period of three months from the date of the Order. 
PACL filed an appeal before the Securities Appellate Tribunal (SAT), which was dismissed on 12 August 2015. The SAT directed PACL and its promoters-directors to refund the money within three months. Since the company and its promoters-directors failed to refund the money to the investors as per the directions of SEBI and SAT, the market regulator said it has initiated the recovery proceedings.
Meanwhile, All India PACL (Pearls) Investors Association (AIPIA)-led by Vishwas Utagi, has decided to to take out a massive morcha of around one lakh investors to SEBI and hand out claims of investors to the market regulator. 
AIPIA is also requesting investors to submit filled forms for claims at its offices. Here is the address of its Mumbai office... 
All India PACL (Pearls) Investors Association 
C/O Maharashtra State Bank Employees Federation, 
Dadyseth House, 1st Floor, (Rear), Nanabhai Lane, 
Fort, Mumbai- 400 023




10 months ago

I have a personal experience with the PACL agent in my native, which is almost near to Kannyakumari.

When the agent called me, he introduced himself as the agent of LIC and I accepted to meet him to discuss about the policy.

When we met, he told Pearl Agro is same as LIC and approved by GOI. I asked for the approval letter and the website of their company. The moment I asked for more details he started sweating and left me saying that he would come with his officer, but never happened.

One or two questions asked in time might have helped those who invested in PACL.


10 months ago

India is a true banana republic and the legal system will only work for the cheaters.

Vaibhav Dhoka

10 months ago

The failure of recovery is due to multiple agencies which do not co ordinate and have nothing to loose.Our courts are very much eager to grant INJUNCTION which keep the subject in abeyance.

Meenal Mamdani

10 months ago

This delay in rendering justice to the investors is abominable.

SEBI passed its first judgement against PACL in 1999.

This was challenged in Rajasthan HC by PACL at the end of 1999. Rajasthan HC too 5 years to deliver a judgement in favour of PACL in 2004.

SEBI appealed against this verdict in Supreme Court which gave a judgement in favor of SEBI after a gap of 10 years in 2014. PACL challenged this judgement before the SAT and mercifully SAT ruled against PACL in an unbelievably prompt manner, less than 1 year.

Now the investors are protesting before SEBI. Instead, they should be protesting before the Supreme Court for the unconscionable delay of 10 years to arrive at a judgement.

It looks like PACL counted on this delay by the SC, so that it could continue to use the investor funds for 10 years, as the other entities look positively prompt in comparison. SC may be the final court of appeal but if it cannot deliver judgement in a timely manner, should it even accept the case?

In USA, the SC accepts a fraction of the cases that come before it, depending on the implications of the case on the wider financial system. The rest are sent back to the lower body whose ruling stands.
Since this would take the case back to Rajasthan HC whose judgement the SEBI disagreed with, why could this case not go to SAT directly, short circuiting the inordinately long wait?

PACL comes out a winner in this case even if the final judgement has gone against it as it has had the use of investor funds for 16 years.

Is this justice?


Binod Sarma

In Reply to Meenal Mamdani 10 months ago

Well said Meenal Mamdani .... True, people should go & have dharnas outside the supreme court for such inordinate delay .... Companies like PACL are using judiciary lacuna to delay proceedings & judgement.

Reliance Foundation to spread financial literacy among slum women
The Reliance Foundation on Monday announced a unique initiative it has taken up -- a project to spread financial literacy and awareness among half a million slum women of Mumbai.
The programme was launched on the 83rd birth anniversary of the late industrialist Dhirubhai Ambani and aims to "empower women towards making informed financial decisions and get them to inculcate the savings habit".
Backed by CRISIL's technical knowhow, the Reliance Foundation has carried out a study of Mumbai slums which revealed how women were usually kept out of the financial decision making process by the men.
"Even the employed ones among them hand over their salary to their husbands or fathers who manage the money. Psychologically, these women do not feel adept at handling finance. In reality, however, they are much better at managing finances though a majority of them know nothing about the basics of banking," a foundation official said.
Accordingly, a module has been created to educate such women in the basics of banking, help them avail of government initiatives like Jan Dhan Yojana, Rashtriya Swasthya Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.
The Reliance Foundation will help every woman open a bank account under Jan Dhan Yojana and connect older women to the Atal Pension Yojana, said foundation COO Jitendra Kalra.
In the first phase, a pool of 50 master trainers will be trained from the marginalized women using technical help of CRISIL Foundation, who in turn would train another 2,400 trainers by March 2016 to carry the programme forward.
Kalra added the workshop is designed as an extension of Prime Minister Narendra Modi;s 'Beti Bachao, Beti Padhao' programme.
"By educating women from marginalised sections of the society on financial matters, we will be empowering them to make informed decisions for the financial well-being of their families. After all, a woman cares the most for her family," he noted.
Headed by founder-chairperson Nita Ambani, Reliance Foundation is engaged in helping marginalized sections of people and impacts over 5,500 villages and four million people by its activities.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article. 


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