Protect interest of small investors: FM to SEBI

“The Finance Minister has directed us to be very careful towards protecting interest of small investors and also work towards market regulation and development,” SEBI chairman UK Sinha said.

Finance Minister Pranab Mukherjee asked capital markets regulator SEBI to diligently protect the interest of retail investors.

“He (the Finance Minister) has directed us to be very careful towards protecting interest of small investors and also work towards market regulation and development,” SEBI chairman U K Sinha told reporters after a board meeting.

The meeting was chaired by Mr Mukherjee. The board discussed the future agenda and expectations of the government from SEBI on policy fronts, he added.

Patting SEBI for the work being done for investors' protection, Mr Mukherjee said, “They are moving in the correct direction and I am quite confident that SEBI will not only be able to fulfil its mandated objectives but it will... strengthen the capital market.”

Mr Sinha further said that the Board has assured the minister that it will be working toward policy objective which the government has given to the market regulators.

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COMMENTS

Dr Vaibhav G Dhoka

5 years ago

FMs directive and SEBI's boss assurance is a welcome move but SEBI should stand to its assurance in word and spirit.AS small investor like me have most unpleasant experiance at SEBI's handling of grievances of investor.My complaint is pending for about 7 years with SEBI.Investors are becoming wise to read such assurances.

Public Interest Exclusive
RTI threatened in Maharashtra, say activists

Activists have urged the CM to fill up the posts immediately as RTI applications to various state government departments remain unanswered

RTI activists and citizens are perturbed that Maharashtra chief minister Prithviraj Chavan has been dilly-dallying with the appointments to the vacant posts in the state information commission, and have said that he needs to be proactive in the implementation of Right to Information (RTI) Act and address the problems that activists face.

Moneylife has written about the chief minister’s reluctance in filling up key posts in the state information commission, despite a reminder from Central Information Commissioner Shailesh Gandhi. Read Threat to RTI in Maharashtra

Bhaskar Prabhu, an RTI activist and convenor of Mahiti Adhikar Manch, said, “We had expected better treatment for the RTI from the present chief minister as he had shown much interest in it when he was in the central government. But we are unable to get a clue what turned him into a silence spectator when he came to Maharashtra.”

Mr Prabhu added that the Mahiti Adhikar Manch and Maharashtra RTI Council had also taken up the issue with Mr Chavan.

Vijay Kumbhar, a journalist-turned RTI activist commented on the matter, “I have written to the chief minister many times, and have sent him many messages. He hasn’t taken any decision on the matter.” Mr Kumbhar has asked Mr Gandhi as to what steps should be taken to ensure proper implementation of RTI in the state.

“Even Anna Hazare has written three letters in last one month to the chief minister on this issue; but CM has not replied to him,” said Vivek Velankar, an eminent RTI activist.

Public Concern for Government Trust (PCGT) has filed a public interest litigation (PIL) regarding the matter. Dara Gandhi, managing trustee of PCGT said, “The PIL was filed last week and the hearing may come any day. We have complained that key posts in the state information commission are lying vacant, and that is harming the Act itself. The appointments should be made immediately.”

Sanjay Shirodkar, who had earlier successfully argued before the Central Information Commission that private infrastructure entities like Mumbai International Airport (MIAL) must come under the purview of RTI, said that even after his success, he has received no response from the government. He has filed many applications with various authorities like public works department, water resources department, urban development department and MMRDA. “Many of the departments I have written to are under the chief minister. Yes, I can say RTI in Maharashtra is in bad shape,” he commented.

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Monalisha fined for share price manipulation

SEBI investigations revealed that Monalisha Securities, a sub-broker of Intec Shares and Stock brokers, indulged in structured deals during the period.

The Securities and Exchange Board of India (SEBI) has fined Monalisha Securities Rs2 lakh for manipulating the Videocon and NRB Bearing scrips. These scrips were manipulated between 1 May 2004 and 15 June 2004.

SEBI investigations revealed that Monalisha Securities, a sub-broker of Intec Shares and Stock brokers (ISSBL), indulged in structured deals during the period.

SEBI's investigation revealed that delivery of shares were neither given nor taken, creating artificial volume and impacting the price of the scrips.

Monalisha Securities was involved in 16 structured deals across six settlements in Videocon on the NSE. On all six days, the transactions were reversed within a minute of the first trade and positions at the end of the day used to be nil. The total quantity traded in all these deals was 74,000 shares.

Similarly, in the NRB Bearings scrip 24,000 shares were traded in total across 13 structured deals on three days and the same story was repeated. The trade had been done through the broker ISSBL for its ultimate client Classic Investments on three days for 12,000 shares and contributed for 27.54% of the gross traded quantity of the market. Classic Investments had not done any delivery based trading. When structured deals took place, the trade was reversed within a minute of the first trade. The total quantity traded in all these deals is 24000 shares. In all these deals, the counter-party was Mansukh. Mansukh booked losses and ISSB, profits.

This clearly indicates that the orders were placed with a prior understanding that those will be picked up by a particular client on the opposite side, which also indicates that there was a prior understanding with the brokers who had dealt on its own account and for clients and executed large number of such transactions. Such type of transactions can not be called genuine transactions.

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