Citizens' Issues
Now, SEBI says it has no information on surveillance either!

The market regulator claims it does not have information on surveillance, inspection and prosecution. This is an unbelievable admission since it spends over Rs50 crore of taxpayers’ money

In response to Moneylife’s Right to Information (RTI) appeal, the Indian capital market watchdog, Securities Exchange Board of India (SEBI) has made a surprising admission: it does not have information pertaining to its surveillance, inspection and prosecution activities!
 

We had filed an RTI on how its state-of-the-art surveillance systems, the Integrated Market Surveillance System (IMSS) and Data Warehousing Business Intelligence System (DWBIS) fared by asking the following simple questions:

  • How many detected cases had resulted in prosecution?
  • How many detected cases had resulted in consent orders?
  • How many detected cases were dismissed due to lack of evidence?
  • How many detected cases are still pending for investigation?

 

The PIO (public information officer) at SEBI, however, denied the information. The PIO on 7 May 2013, vide CPIO/AKS/AJ/325-2013/10853, stated “It is informed that the information sought by you is not available with the concerned department of SEBI.” The entire story can be accessed here.
 

We then filed our first appeal before the First Appellate Authority (FAA) at SEBI. In the appeal, we requested the FAA to direct the PIO to forward the RTI application to the concerned department that has the information. The FAA, however, rejected the first appeal.

 

Vide its order AAO/1691/RTI/07/2013, dated 5 July 2013, S Raman, the FAA stated: “I do not find any reason to disbelieve the response provided by the respondent (SEBI). In this context, I note that the Supreme Court of India in the matter of Central Board of Secondary Education & Anr Vs Aditya Bandopadhyay & Ors (Judgement dated 9 August 2011), had held that: ‘The RTI Act provides access to all information that is available and existing. But where the information sought is not a part of the record of a public authority, and where such information is not required to be maintained under any law or the rules of regulations of the public authority, the Act does not cast an obligation upon the public authority, to collect or collate such non-available information and then furnish it to an applicant.’ In view of these observations, I find that the respondent cannot be obliged to provide the information sought by the appellant through the instant query.”
 

It is pertinent to note that the data related to surveillance is clearly disclosed in SEBI’s annual reports. However, SEBI has published only the aggregate data but not the specific information which we had specifically asked for. The annual report does not mention how many cases were detected by the IMSS and DWBIS systems, respectively, for which it has spent so much taxpayers’ money. Why it has not disclosed this information remains a mystery.
 

SEBI has spent so much money on beefing up its surveillance mechanisms. It has 48 people on staff as of 31 March 2013, and has so far spent collectively over Rs50 crore of taxpayers’ money, on the state-of-the-art  IMSS and DWBIS. It has also employed Tata Consultancy Services (TCS) to take care of its DWBIS. Yet, there are continued cases of brazen manipulation, which is covered in every issue of Moneylife, under the ‘Unquoted’ section. You can check our unquoted section online here. Moneylife even had an exclusive cover story on the same which can be accessed here.

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COMMENTS

sathyacumaran

4 years ago

madam sucheta dalal thanks for inhuman service we are there to back you but since we belong international media and channel group and once if we put anything in black and white this would flare up and spoil the whole indian capital market and we as an journalist we have solid facts of corruption in sebi bse nse but this would affect the indian capital market as well as indian administrative that is reason why we just backing your organisation i myself is affected person but i can represent but this should not affect the indian economy and indian capital market and stock broking house how shri Chidambaram collapased all the NBFC where by name person in their mid forties have lost their jobs and their curse would sure affect the future prospectus of present finance minister similar situation should not happen that is reason why we are asking the ngo's like your organisation to fight and we would like to give the inputs you know our pen is mighter than sword but that as basis we should not spoil the indian capital market and make many upcoming and promising stock analyst career and existing dealer and relationship manager should not loose their jobs because of our writing hence we are hear to back you and by your fighting we are expecting some justice and some redressal for our problem please conisder our problem and fight for it madam we do appreciate your bold step in this venture

sathyacumaran

mm sundram

4 years ago

there is a department in SEBI called "Integrated Surveillance Depratment" in SEBI's administration in which the officials named as Shri Sujit Prasad, GM Shri Avarjeet Singh, DGM Shri Debashis Bandyopadhyay, DGM Shri Manoj Kumar, GM Shri Avneesh Pandey, GM Shri Manojan Karayi, DGM are working and it is shown by the SEBI itself in the volunatary Disclousre and in SEcond Appeal the Money life team can ask this questions as to why the FAA and CPIO from the sEBI denied the information and also ask the penalties (u/s 7(2), RTI Act 2005)with penal charges.

SuchindranathAiyerS

4 years ago

The PMO has nothing on coal allocation either. This beats having to burn the erchives

nagesh kini

4 years ago

Dubeyji should stop using words like 'cribbing' when he obviously doesn't know what they stand for.
On the contrary satyacumaran in his exhaustive mails has made a very convincing case.
That SEBI PIO has more to hide than disclose is apparent from their responses. In fact he failed to face the Money Life Team that sought a RTI Sec.4 on-site inspection, amply proves it!

nagesh kini

4 years ago

Dubeyji should stop using words like 'cribbing' when he obviously doesn't know what they stand for.
On the contrary satyacumaran in his exhaustive mails has made a very convincing case.
That SEBI PIO has more to hide than disclose is apparent from their responses. In fact he failed to face the Money Life Team that sought a RTI Sec.4 on-site inspection, amply proves it!

REPLY

uttamkumar dubey

In Reply to nagesh kini 4 years ago

thanks nagesh!Sorry for the wrong usage.

But I wanted to know where is the solution in such cases.How can smart and inttelligent ppl contribute instead of commenting onlne.

uttamkumar dubey

4 years ago

Now as the thing is known widely with sufficient proof, that this govt represents all sorts of inefficiency and corruptions, are we coming on roads to oppose them.

Can @Moneylife offer us opportunity to do something real instead of cribbing online.Cribbing is good if it reach to masses.

REPLY

Sucheta Dalal

In Reply to uttamkumar dubey 4 years ago

Sure Mr Dubey... we have set up Moneylife Foundation precisely to do something and we do!
You must join our efforts -- we have done more than other NGOs in 3 years of our existence. We can do more if we have serious volunteers and resources.

Why dont you come and volunteer at least? Most people who offered to volunteer, want to do seminars .... NOBODY wants to help us with REAL WORK. Drafting memorandum, out reach, getting new members, helping raise resources etc. That is the SLOG work that holds people back unless an entity has LOADED godfathers who offer support.

A clean, public spirited organisation can ONLY do more if people commit their time for it. That is how you can stop CRIBBING and JOIN us to do something . check http://foundation.moneylife.in
We would love to hear from you. You can write to us at [email protected] or to Debashis Basu at [email protected]

Mitranand Financial Services Pvt Ltd

4 years ago

Why are you complaining about 50 cr. Spending.... just look how much money they have made in passing consent order :)

Suresh C Ashawa

4 years ago

This shows how tax payers money is getting wasted by SEBI

sathyacumaran

4 years ago

we would like mention in sebi there is separate department for Integrated Market Surveillance System (IMSS) and Data Warehousing Business Intelligence System (DWBIS) and its headed by MR.Ramnns and what is work is he doing when he accepts that there is no intelligence survelliance and so long for past 25 years the sebi is running this department without any work aand aas citizen of india we consider the amount spent on the salary and other expenditure is collasal waste of govt exchequer without any work why should be an staff be paid when the survelliance department itself accepts they have not done their job this shows that none of the employees of sebi nse bse are doing their job and this gross loss to exchequer of govt of india when there is no survillance where is question of control other matter as such an citizen of india we consider the sebi nse bse are waste of govt money instead if the govt works out an mechanism where by honest and law abiding citizen justice lawyers and freedom fighters like Shri ANNA Hasara and Dr.Subramnaya swamy if the panel is appointed we as an citizen of india can expect some good governance and corruption in sebi bse nse and indian stock broker could be reduced and indian capital market can revive and indian investors could be saved from the clutches of the unscrupulous broking house looting thier hard earned money for which sebi nse bse are party to it as affected party of looting and not delivering justice i write this after reading this mail i expect some justice otherwise we have to take this episode to international platform to expose hpow indian capital market is functioning and how corrupt in indian financial service sector had to be exposed and how the indian stock brokers loot their client that is reason why citizen of india desist from entering into stock market they are prepared to play horse race and gambling which they knew it is game of chance but they donot want their hard earned money be looted by stock brokers and officials of sebi bse nse which as citizen of indian unable to digest and that is the reason why the indian stock masrket is in primitive stage now they are prepared to play in the international market where there is justice and goodwill and reward for their earning hence this appeal done as affeted and victimised citizen by sebi bse nse and indians tock broker
now only survelliance department had come out that they have not done their job in short we would prove that whole sebi nse bse had failed to discharge their duty this show how indian administration is functioning that to in the financial service sector where our Primeminister is very great economist and Finance Minister is Haward University MBA apart barrat Law his department itself is in such and bad shape we need not say other department as whole indian administration itself need flushing where honesty and integrity and accountability should be teached for which the rules and punishment should be severe and morale values should taught to govt employees and code of conduct should be implemented sorry to mention such strict and comment but this i am writing because i could vent my feelings and this would reach the ears of officials and chairman of sebi nse bse where from this platform i could get justice


sathyacumaran


sathya cumaran

REPLY

mm sundram

In Reply to sathyacumaran 4 years ago

very well said. this kind of spirit only needed now. keep it up sir we are with you in all/

gcmbinty

4 years ago

Also, please, seek information under RTI Act as to how much money of investor-consumers have been recovered, the manner in which used, how much money has been used in Investor Education and Awareness programmes as we the consumer-investor organisations are not satisfied with the way investors' money is being used.

Thanks,

G. C. Mathur

mm sundram

4 years ago

on Sun, Apr 17, 2011 at 9:01 AM i have sent complaint to sebi/mumbai on the price movements of INFOSYS to the following sebi officials referring the surveillance. their email ids [email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
shashi kumar ,
Avarjeet Singh ,
[email protected],
debashis ,
[email protected],
[email protected],
[email protected] for which no action still been taken by the SEBI. this is about the lapses of SEBI's own surveillances and i have specifically mentioned it in the above mail which can be proved. Even then, it is made by the AA of sebi that there is no information available. this a total callousness. i have to take up this with sebi.

REPLY

sathyacumaran

In Reply to mm sundram 4 years ago

this action of ineffeiceny in sebi nse bse should be taklen by ministry of finance and RBI but they never bother to take any action even if we bring this episode they pass on the bucks to sebi so indian financial service sector is full of corruption including the FM and PM

sathya cumaran

sathyacumaran

In Reply to mm sundram 4 years ago

even if you send all the 647 employees whose emailid available in sebi mailing list nobody would respond this show that the whole including the chairman is very much well aware of inefficency of his organisation inorder to get political milage the chairman promises all sorts of reforms measures but this would never been executed by the down below staff because after attaining the age of 58 they are supposed to retire during that time these officials because of non implementation of rules framed by the rules these officials would be re-employed in big stock broking house in the compliance team and they would be heftly rewarded because there collegue would have taken their shoes so as such all the rules and regualtions and acts passed by sebi nse bse are just an eye wash its is collasal wastage of govt exchequer this reason why former bse chairman Shri Madhu Kannan resigned because he passed an strict rules and this not implemented by the down below staff he got irritated and he thought he is just an puppet in the hands in bigh stock broking firms how our prime minister is honest puppet as per Dr.Subramanya swamy's version similar is the case of sebi chairman bse and nse chairman all these chairman are just rubber stamp without ink and there acts or rules would never been put in action by the down below staff this could be proved


sathyacumaran

L&T order inflow guidance seems achievable, says Nomura
Nomura is slightly sceptical on execution timelines of Larsen & Toubro for some of its orders, as demand for imported LNG remains uncertain, and plans for most companies are still fluid
 
Nomura’s analysts met with Larsen & Toubro’s (L&T) management recently and found that the order inflow pipeline which the company has chalked out for FY14 is mostly achievable. L&T had guided for a 20% order growth in FY14, which works out to Rs1.05 trillion. As per the brokerage’s discussion with the company management, incremental orders in FY14 is likely to be driven by Hydrocarbon and Transport Infra segments, while the rest of the verticals are likely to remain flat y-o-y. This is in sync with the view that buildings & factories as a segment that had been driving growth for the company for the past two years is now slowing and incremental order growth is likely to be very difficult.
 
Execution timelines, though, remains a key concern on some of the orders booked in the recent quarters, especially from the buildings & factories segment as well as in the upcoming pipeline of projects in the hydrocarbon space, said Nomura Equity Research in its Quick Note. 
 
However, not withstanding our medium-term concerns about orders/ margins/ execution, the brokerage believes that L&T remains among the best potential recovery plays in the sector in India. With the stock trading inexpensively at around 13.1x adj. FY15F EPS of Rs77.1, and lack of choice in the sector, it maintains a Neutral rating on the stock.
 
Key takeaways from Nomura’s meeting with the L&T are as follows:
In the Hydrocarbon segment, L&T expects a doubling of order inflows to the tune of Rs150 billion in FY14F from Rs75 billion in FY13. In the domestic market, the company is targeting new order opportunities from: 1) fertilisers plants; 2) LNG re-gasification plants and 3) refinery orders.
 
According to the company, post the announcement of the New Urea Policy, some of the fertilisers companies are tendering in anticipation of gas allocation by Indian government. For the fertilisers plant, L&T is capable of executing full EPC contract on a turnkey basis through technological tie-ups with respective partners. Similarly, with LNG terminals, the company has tied up with various international players and will be bidding in consortium for any orders.
 
Nomura is slightly sceptical on execution timelines for some of these orders as demand for imported LNG remains uncertain and plans for most companies are still fluid. Similarly, while there has been general excitement over New Urea Policy related fertiliser capex, most customers are awaiting clarity on gas supply commitment/tie ups. Even if ordering does happen from these segments, execution timelines will be stretched and likely to extend up to 4-5 years, opines Nomura.
 
In the Middle East, L&T is aiming for orders valued less than $500mn from midstream/downstream projects. L&T is not qualified to bid for complete refinery projects, which goes anywhere between $2 billion and $3 billion, thus it targets refinery packages orders which are typically $300-$400mn in size. These orders are bagged directly from the customers while bidding as one of the consortium partners. In the offshore segment, the management noted that it has not bid for any large orders in the Middle East markets.
 
Apart from Hydrocarbon, L&T is bullish on the transport infrastructure segment where too it expects to nearly double its order inflow in FY14F. The order inflow should be driven by Dedicated Freight Corridor project in India and other road & metro projects in international markets.
 
Specifically in the road sector in India, as a strategy, L&T mentioned that it will not be bidding for BOT projects, though it might look for opportunities in the EPC projects that might come up from the National Highway Authority of India (NHAI). As per L&T, 1-2 projects of more than 400 Km are on the anvil and if they are sufficiently complex for L&T to execute (thus implying better margins) than L&T will take them up for bidding. 
 
In the international markets, L&T has already been successful in road projects this year as it is already L1 in three packages of Batinah expressway and another road project in Abu Dhabi for a total of Rs70 billion. In addition, L&T is also targeting road interchange packages in the Middle East with each such project potentially valued around $100 million.
 
In India, orders from metro rail projects, railways track refurbishment, rail sidings projects is likely to grow at steady rate in coming years. Specifically for DFC (dedicated freight corridor), the second package of Western DFC is likely to be awarded in FY14F. Similar to the first package of western DFC, there are only two consortiums (including L&T’s) that are qualified for the second package. For the third package, Marubeni-Tata Projects- KEC International – IVRCL Infra-Simplex-Gammon consortium has been added to the list of qualified bidders (totally, three consortiums are qualified to bid). L&T expects a third package to be awarded only next year.
 
In international metro projects, the company is targeting opportunities in the Etihad Rail project ($11 billion) and Riyadh metro project ($8 billion). Apart from this, in the Middle East, around 4-5 airports orders are likely to come up for bidding, which L&T will be targeting.
 
In the urban infra, after recording a robust growth in the last two years, growth is expected to remain largely flat this year. This is in line with Nomura’s view, as it expects order inflow of Rs235 billion in FY14F from this segment.
 
This apart, the management expects orders from the water segment to be likely flat y-o-y. The company though sees large potential over the next 3-4 years in this segment due to water management infrastructure lagging urban growth.
 
L&T expects flat order inflow from the both coal and non-coal power segments, as the sector is plagued by delays in land and fuel availabilities. Even T&D orders from domestic as well as international orders are expected to remain flat y-o-y.
 
The management does not expect any pick-up in process orders due to uncertainty over capex plans of major metal players. Again, order inflow is expected to remain flat y-o-y.
 
Margins and working capital
On the back of write-back of provisions, the company’s headline SG&A expense has declined in FY13 and has been more or less stagnant over the past few years. However, adjusting for these write-backs, SG&A expense has grown in the range of 10%-15%, as per the company and will continue to grow at similar rate going forward.
 
As the total no. of project sites continues to increase for the company (due to incremental orders being smaller in size), L&T has been adding its workforce at a rate of c.5,000/ year (no of employees in standalone entity as of Mar-13 is approx 55,000). Nomura estimates the company’s personnel expense to grow 15% in FY14F/FY15F which is more or less in line with management’s commentary.
 
On working capital, L&T expects net segmental working capital to be in the range of 15% to 20% of sales in FY14F versus 16% in FY13.
 

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Sensex, Nifty precariously poised: Wednesday Closing Report

If the Nifty breaks the level of 5,775, it may head sharply down

The market closed near the lows of the day on concerns that quarterly earnings from corporates would come in below expectations. If the Nifty breaks the level of 5,775, it may head sharply down. The National Stock Exchange (NSE) recorded a volume of 51.42 crore shares and advance-decline ratio of 577:740.

 

The Indian market opened in the positive on supportive global cues. Most markets in Asia were higher in morning trade, but weak trade data from China capped the gains. The US markets closed in the green on Tuesday in anticipation of better earnings reports from corporates.

 

The Nifty opened 11 points up at 5,870 and the Sensex started the day at 19,483, a gain of 44 points over its previous close.  Buying in consumer durables, realty, banking and power sectors soon lifted the indices to their day’s highs. The Nifty touched 5,879 and the Sensex rose to 19,506 at their respective highs.

 

Meanwhile, the International Monetary Fund (IMF) on Tuesday marginally scaled down India's growth rate projections to 5.6% for the current fiscal and 6.3% for the next financial year. This was slightly lower by 0.2% and 0.1%, respectively, than the previous forecast released by the IMF in its report in April.

 

Profit taking in metal, auto, refinery and realty sectors amid choppy trade saw the indices paring their gains and remaining range-bound near their previous closing levels in morning trade.

 

Sporadic buying saw the indices emerge in the positive terrain in noon trade. However, the gains were short-lived as the market slipped into the red in the post-noon session on pressure from oil & gas and auto stocks and concerns about first quarter earnings from corporates.

 

The benchmarks touched their lows at around 2.30pm with the Nifty falling to 5,803 and the Sensex slipping to 19,238. The market settled near the lows as the key European indices pared opening gains and selling in oil & gas, realty and auto sectors.

 

The Nifty settled 42 points (0.72%) lower at 5,817 and the Sensex ended at 19,294, down 145 points (0.75%).

 

The broader indices also settled lower today, as the BSE Mid-cap index declined 0.40% and the BSE Small-cap index slipped 0.04%.

 

BSE Consumer Durables (up 1.95%); BSE IT (up 0.66%); BSE TECk (up 0.27%) and BSE Healthcare (up 0.11%) were the sectoral gainers today. The top losers were BSE Oil & Gas (down 1.82%); BSE Auto (down 1.50%); BSE Realty (down 1.32%); BSE PSU (down 1.02%) and BSE Capital Goods (down 0.98%).

 

Out of the 30 stocks on the Sensex, eight stocks settled higher. The gainers were Wipro (up 1.33%); Tata Power (up 0.88%); Jindal Steel & Power (up 0.74%); TCS (up 0.60%) and ICICI Bank (up 0.34%). The main losers were Mahindra & Mahindra (down 2.63%); Hindalco Industries (down 2.58%); Bajaj Auto (down 2.13%); Tata Steel (down 1.97%) and Reliance Industries (down 1.95%).

 

The top two A Group gainers on the BSE were—Emami (up 5.49%) and Wockhardt (up 5.12%).

The top two A Group losers on the BSE were— Strides Arcolab (down 8.09%) and GlaxoSmithKline Consumer Healthcare (down 5.19%).

 

The top two B Group gainers on the BSE were—Dolat Investments (up 20%) and Asian Hotels West (up 19.94%)

The top two B Group losers on the BSE were—Agro Dutch Industries (down 18.85%) and Sancia Global Projects (down 18.69%).

 

Of the 50 stocks on the Nifty, 13 ended in the in the green. The major gainers were Lupin (up 2.87%); HCL Technologies (up 2.28%); UltraTech Cement Co (up 1.64%); NMDC (up 1.26%) and Tata Power (up 1.23%. The key losers were Hindalco Ind (down 3.12%); BPCL (down 3.07%); Bank of Baroda (down 3.05%); M&M (down 2.79%) and Cairn India (down 2.46%).

 

Markets across Asia, with the exception of Japan and South Korea, closed higher on speculations that the Chinese government might announce some new measures to boost growth on the back of falling exports. Chinese exports fell 3.1% in June from a year earlier, the first decline since January 2012. Meanwhile, imports also were 0.7% lower, lower than expectations for an 8% gain.

 

The Shanghai Composite jumped 2.17%; the Hang Seng surged 1.07%; the Jakarta Composite climbed 1.70%; the KLSE Composite rose 0.13%; the Straits Times gained 0.30% and the Taiwan Weighted advanced 0.51%. Among the losers, the Nikkei 225 declined 0.39% and the Seoul Composite lost 0.34%.

 

At the time of writing, the key European markets were down between 0.27% and .56% and the US stock futures were marginally in the red ahead of the minutes of the release of the FOMC June meeting.

 

Back home, institutional investors—foreign as well as domestic—were net buyers in the equities segment on Tuesday. While FIIs bought shares totalling Rs165.61 crore, DIIs invested Rs37.83 crore.

 

The indefinite strike by employees of Neyveli Lignite Corporation (NLC) against the Centre's move to divest 5% of its stake in the PSU entered the eighth day today. About 30,000 workers, including 13,000 contract employees, are on the strike since July demanding that the government withdraw its decision to sell its stake as part of disinvestment process. The stock rose 0.17% to Rs58.65 on the NSE.

 

Sterlite Technologies has entered into a 50:50 joint venture agreement with Conduspar Condutores Eletricos Limitada (Conduspar), to build a greenfield facility in Curitiba in Parana state (Brazil) to produce optical fibre cables for the Latin American markets. The joint venture is expected to start commercial production by the first quarter of fiscal 2015. Sterlite Tech gained 4.29% to settle at Rs23.10 on the NSE.

 

Tide Water Oil Co (India), now the owner of global rights for the lube brand Veedol, has set up subsidiary in the Netherlands—Veedol International BV—to re-launch the branded products in Europe. Tide Water, which earlier only had the rights to the iconic brand for India, acquired Veedol International, UK, from BP Plc in October 2011 along with the brand rights, its logos and sub brands in 126 countries. The stock gained 0.92% to close at Rs7,220 on the NSE.

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