NSEL announces settlement plan, to keep e-series suspended
As per the settlement plan, pay-in would commence from 16th August while pay-out will start from 20th August. Trading in NSEL e-series would remain suspended
 
National Spot Exchange Ltd (NSEL) on Wednesday announced its payment settlement plan. As per the plan, pay-in would commence from 16th August while pay-out will start from 20th August. 
 
In a release, NSEL said it is solely and directly responsible for all its operations. Regarding the e-series contracts, the Exchange said trading would remain suspended until further directions from the government and regulator Forward Markets Commission (FMC).
 
The exchange owes its investors at least Rs5,600 crore against investments made in stocks warehoused by NSEL. As a precautionary measure, the government of India had directed NSEL on 6th August to suspend the e-series contracts from trading.
 
Meanwhile, prime minister Manmohan Singh has set up a special team headed by economic affairs secretary to look into NSEL issue.
 

User

COMMENTS

Reeta

4 years ago

Even today as per the Settlement plan from NSEL the Broking fraternity is not trying the safeguard the interest of the small investors. I am a woman retired widow senior citizen who had invested almost 80% of my life savings worth 8 lacs in this exchange. I am on medication now suffering from a nervous breakdown.
In case of a bank default all depositors are given 1 lac each by RBI not on pro-rata basis. It is a similar situation now at NSEL. Why cant the FMC distribute in a similar way ? Or at least give 10% per week to investors below 10 lacs & 2.5% to HNI investors. This would give a large number of small investors who have put their life savings in this exchange some relief.

Vinayak Bhimarao Mudholkar

4 years ago

Management by objectives is the mantra (preached in business schools)of "modern" businesses but it ought to be "Sadhan Shuchita"!

R Balakrishnan

4 years ago

Clever use of words 'NSEL is solely" responsible.... A clear attempt to try and protect Financial Tech.
If Jignesh Shah is so committed, let him first put in the money from FT (or what it claims it has on the balance sheet) and then take it back when money comes back to NSEL. Clearly, something is seriously amiss and no one is seriously pursuing all options

REPLY

Reeta

In Reply to R Balakrishnan 4 years ago

Absolutely... How can he freely own and run a public listed company when he has defaulted as a scamster in dwindling commodities in another exchange. FT should be made responsible as a promoter company.

Sensex, Nifty may struggle to head higher: Wednesday closing report
For the Nifty to keep rallying, it has to make a new high and hold itself above 5,672
 
Today the Sensex and the Nifty closed in the positive for the fourth consecutive trading day. Sensex opened at 19,299 and soon hit a higher low of 19,204. After which it witnessed a lot of volatility, but near the end of the session, it shot up to an intra-day high of 19,393 and closed at 19,368 (up 138 points or 0.72%). Nifty opened at 5,715 and reached 5,755 after hitting a low of 5,690 and closed at 5,742 (up 43 points or 0.75%). The National Stock Exchange (NSE) recorded a volume of 67.34 crore shares.
 
All the major indices on the NSE closed in the positive. Lix 15 was the top gainer, up 2.36%. Among the other indices, Auto (rose 3.17%); Realty (rose 2.89%); Metal (rose 2.70%); PSE (rose 2.53%) and Media (rose 2.50%) were the top five gainers. The three indices which fell were MNC (fell 0.28%); IT (fell 0.25%) and Pharma (fell 0.24%). 
 
Of the 50 stocks on the Nifty, 30 ended in the in the green. The major gainers were Tata Motors (up 9.82%), Hindalco (up 7.22%), BPCL (up 6.50%), NMDC (up 5.83%) and DLF (up 5.65%). The main losers were HCL Technologies (down 2.19%); Ranbaxy (down 1.82%); BHEL (down 1.74%); Dr Reddy (down 1.35%) and Reliance Infrastructure (down 1.27%).
 
The stock market remains closed tomorrow, 15 August 2013, on account of Independence Day.
 
Inflation based on the wholesale price index (WPI) inflation accelerated to 5.79% in July 2013, from 4.86% in June 2013, according to the data released by the government. Fuel and power groups mainly contributed to the increase in inflation in July 2013. Meanwhile, the government revised downwards inflation for May 2013 to 4.58% from the 4.7% reported earlier. 
 
The WPI inflation has moved past the central bank's comfort zone. The Reserve Bank of India has said it can tolerate inflation up to 5%, but that a faster pace of price increase hurts the economy's long-term growth prospects. 
 
Data released on Monday showed that the annual consumer price inflation slowed in July but remained elevated at 9.64%, from 9.87% the previous month.
 
India will consider a request from oil marketing companies to be allowed to raise diesel prices by more than the approved Rs0.50 a month, oil minister, M Veerappa Moily, told a television channel.
 
US indices rose on Tuesday. A report released by the Commerce Department showed retail sales rose 0.2% in July after a 0.6% gain in June that was larger than initially estimated. Retail sales excluding cars, gasoline and building materials climbed at their fastest pace in seven months.
 
On the other hand, talk about the Fed's next step escalated on Tuesday when Atlanta Fed President Dennis Lockhart said it was too early to detail plans for a tapering, but did not rule out the possibility of it starting next month. However, he suggested it to be a cautious first step. This pushed the US market up yesterday.
 
Asian indices had a mixed performance. Nikkei 225 being the top gainer, 1.32% while Taiwan Weighted fell the most, 0.44%. Hong Kong stock and derivatives trade was canceled on Wednesday due to storm.
 
European indices were trading mostly in the green while the US Futures were trading in the red.
 
In Europe, the latest data showed that Germany's gross domestic product swelled 0.7% in the second quarter from the preceding period. Germany's statistics office said growth in the second quarter was driven by domestic demand, as both private consumption and public spending increased from the first quarter.
 
The minutes of the Bank of England's (BoE) most recent Monetary Policy Committee (MPC) meeting showed that eight of the nine MPC members voted in favor of providing forward guidance on policy last month, and the vote to keep the quantitative-easing policy unchanged was unanimous. The central bank said it would keep interest rates at historical lows until unemployment falls.
 
McNally Bharat Engineering Company has bagged a contract worth Rs 216 crore for engineering, design and commissioning of an ash handling system and water circulation package. The stock fell 0.33% to close at Rs45.80 on the NSE.
 

User

Insurance grievance redress is heavily against the common man: Finance Secretary

In a frank comment that should put the insurance companies to shame, the Finance Secretary attacked the current insurance grievance redressal system as ‘inadequate’ and urged the industry not to betray the trust of the common man

Finance Secretary Rajiv Takru on Wednesday gave a candid speech at 16th CII Insurance Summit in Mumbai. Describing his speech as a talk from his heart, he spoke about the reality of mis-selling, grievance redressal being heavily against the common man and urging insurance companies to be fair in business practices, so that company performance comes from investments and not denial of claims. “Betrayal of trust should not happen in an industry that is based on customers buying products with trust”, he said.
 

Pointing to mis-selling he said that some agents may promise the moon to sell the policy. He remarked about Max Life TV ads wherein the devil unsuccessfully tries to persuade the agent to mis-sell. Mr Takru, added, “In real life, the devil always wins. There are fine prints in insurance policies and hence, we get so many complaints. Someone in the ICU of a hospital is not able to negotiate with health insurer or hospital and hence ends up paying the money. There may be claim denials or partial settlement. There is a need to rectify the system.”
 

According to Mr Takru, “The grievance redress system is not up to mark. I am the last man to think that having the Ombudsman in place or having grievance redressal instead of Ombudsman is going to reduce the problem. We are a poor, illiterate country and not such a country where the average common man would take recourse to legal option to resolve disputes. It is rare for a common man to stand up against corporate might. Grievance redressal is heavily built against the common man. There is a need to develop a system wherein the grievances do not arise, or if they do arise, then there is a very small percentage.”
 

Mr Takru gave his own example where he was mis-sold by a smooth talking Life Insurance Corporate of India (LIC) agent in 1992. He was told that the premium of Rs3,000 has to be paid for 15 years. In case of unfortunate death, his family will get Rs1 lakh. If not, then he can claim the maturity benefit of Rs1 lakh at the end of 15 years. After diligently paying premium for 15 years, to his shock he found that the maturity benefit will be paid when he turns 80 years. So, he has to wait for another 34 years after premium payment term of 15 years to get his Rs1 lakh. He says that if it can happen to a literate person, then it is surely an issue for illiterate persons.
 

Mr Takru suggested insurance companies should be fair as insurance is about trust. It is not business alone, but has social angle. The performance should be from investments and not based on claims denied. It is bad business which leads to betrayal of trust.
 

If Mr Takru wants real change, he should nudge the Insurance Regulatory and Development Authority (IRDA) to get more active. At the Moneylife Foundation’s seminar on 16 May 2012, IRDA chairman J Hari Narayan clarified that IRDA’s job is not to focus on individual complaints; but it does take up such cases on a random basis and investigates insurance companies to protect the insured. IRDA’s approach is to put systems in place and see how they work and that corrections are made whenever required, to improve processes, he had added. This is a flawed approach because wrong products and wrong selling is common.
 

It means individual complaints may not get solved by IRDA’s Integrated Grievance Management System (IGMS). Consumers still have to go to the insurance Ombudsman, consumer court or civil court. The advantages of Ombudsman are no cost to the insured and binding decision on insurance companies. While the insurance Ombudsman is a good option, there is often a delay in getting a hearing. It can range from six months to one year after making a complaint. In some places the Ombudsman’s post is vacant for several months. This increases the backlog of complaints. 
 

Read: IRDA’s consumer redress system -1: Lot of scope for improvement?

LIC agents likely to recommend less suitable product: Harvard Study

Life insurers and agents hide the truth: Harvard study

User

COMMENTS

nagesh kini

4 years ago

We certainly do not need an extremely top most sarkari babu from our MOF to tell us about the utterly sorry state of affairs of the so-called Insurance Grievance Redress Mechanism. There is no Insurance Ombudsman retired in September 2012. The Secretary Revenue surely ought to know this and what is holding up. Even with a heavy backlog the Ombudsman has to travel to Goa and Nagpur.
The fate of the mechanism at the individual insurance company's is a big question mark - almost non-existent!
Mr Thakru please do something at least, now that you say you were a victim of mis-selling.

Mehboob

4 years ago

I personally do not believe in the concept of Insurance because all the insurance products offered by these insurance companies are meant for legally fleecing one's hard earned money and some greedy people fall prey to the traps laid by these companies. Mathematically if we calculate the value of the money invested in any of these insurance products, we can lead to see the losses incurred in the end and these companies are seen to be benefitted a lot.

Sapan Shrivastava

4 years ago

Insurers come to cheat not to serve. Its white collor robbery.

REPLY

Mehboob

In Reply to Sapan Shrivastava 4 years ago

Yes,you are absolutely right but the common indian population do not understand this and if we people will not encourage these looters then only, this legal and licensed looting will stop,

deepaksb

4 years ago

IRDA looks at convenience of PSU insurance cos. including LIC and large brokers.

When a small individual policy holder complains with IRDA,its NEVER replied or the reply favors insurance co.

IRDA'a so called toll free call center is most un professionally managed.Grivence web portal is also hopeless and a SHOW PIECE.

Ombudsman is equally worse for a individual policy holder.Its a TOTALLY waste of tax payer's money.

Ombudsman AND OTHER STAFF COMFORTABLY rests in a posh air-conditioned offices with NO ACCOUNTABILITY.

OMBUDSMAN OFFICES ARE ANOTHER SHOW PIECES AND A TYPICAL BEAUROCRATIC GOVERNMENT OFFICES.
( ACTIVE WORKING TIME 10.30 TO 4.30 PM - 5 DAYS WEEK WITH ALL GOVT. AND BANK HOLIDAYS closed.)

With increase of Pvt.Insurance cos with existing PSU insurance cos. , and gradual increase in insurance penetration – there should be SEPERATE regulators, grievances settlement procedures for a small individual policy holder and a large corporate / manufacturing / industrial policy holders.

For small and individual policy holder MAY BE an ombudsman office / IRDA remains open on holidays and extended working hours for a common man to get fast and appropriate JUSTICE.

REPLY

raj

In Reply to deepaksb 4 years ago

...and not to mention about time when there is no ombudsman in office for few months. Like in Mumbai this year and last year in Ahmedabad. The backlog keeps increasing. Getting an hearing within 6-12 months should be considered lucky!

raj

In Reply to raj 4 years ago

..insurance ombudsman is still a hope for existing grievance handling system.. the decision is binding on insurance companies...

deepaksb

In Reply to raj 4 years ago

Justice delayed is justice denied.

Why we adopt a system which does not work for a common cicizen ? Is it not a time to scrap such system and impmement something which works in the interest of common citizen ?

Consume orginisations and individual activits must push for some working reforms to tackle of problems faced by a common citizen.

S BHASKARA NARAYANA

4 years ago

The Finance Secretary, Mr. Rajiv Takru, who is not only literate, but also an eminent economist, is duped by the Agent of LIC. Similarly, I was also duped by an illeterate agent of SBI Life, who used to market on behalf of his wife, though I am a banker.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)