Bonds, Currencies & Commodities
Rosland Capital and the risks of investing in precious metals
 

 
Precious metals seller paints a grim financial picture. But investing in gold or silver may not brighten the day
 
In case you missed it amid dystopian images of rising debt clocks and an explosion that apparently signifies “political upheaval,” let us point you to two important fine-print disclaimers in this commercial for precious metals seller Rosland Capital.
 
Investments in precious metals and rare coins are speculative and involve substantial risks. Past performance is no indication or guarantee of future performance or returns.
 
And:
 
Market prices are volatile and unpredictable and may rise and fall over time. …
 
Rosland Capital claims in the commercial — which we plucked from their website — that an investment in gold and silver can provide a level of financial stability that protects you from the so-called “chaos.” But while it’s possible that a precious metals investment can help diversify your portfolio and hedge against inflation, it doesn’t come without its inherent risks.
 
Remember that commercials like these boil down to sales pitches. Do your research and consult an investing professional who can provide objective advice before making any big investment. And mind the fine print.
 
Click here for more of our coverage on investing in precious metals. 
 

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SEBI slaps Rs3 crore fine on 56 entities in Well Pack Papers case

SEBI found that 55 entities had indulged in synchronised trading on numerous occasions thus creating artificial volume in the scrip of Well Pack Papers

 

Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs3.03 crore on 56 entities, including stock brokerage Arcadia Shares & Stock Brokers, for fraudulent trading in shares of Well Pack Papers & Containers Ltd (WWPCL).
 
The case relates to probe conducted by (SEBI) into alleged irregularities in the trading in WPPCL shares during 28 November 2008 to 12 March 2010 and 15 March 2010 to 30 June 2010.
 
SEBI found that 55 entities by trading amongst themselves “had indulged in synchronised trading on numerous occasions, resulting in no change of beneficial ownership thereby, creating artificial volume in the scrip of WPPCL which gave a false and misleading appearance of trading in the said scrip”.
 
In a ruling today, it also said that “Arcadia by executing fictitious trades, in the nature of self and synchronised trades, on behalf of its clients has violated provisions...of Broker Regulations”.
 
Accordingly, SEBI has slapped a penalty of Rs3.03 crore on the 56 entities including Arcadia. It has imposed a penalty of Rs2 lakh on the stock broker and fines in the ranges of Rs2-6 lakh on the others.
 
SEBI observed that the entities connected to each other by one way or the other, had dealt in the scrip of WPPCL through multiple brokers in a fraudulent and manipulative manner, without real change in ownership of shares, by indulging in number of synchronised trades. They had heavily traded amongst themselves thereby, creating artificial volumes and price rise in the scrip.
 
“People who indulge in manipulative, fraudulent and deceptive transactions should be suitably penalised for the said acts of omissions and commission,” it added.
 

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“Financial Literacy Does Make a Big Difference”
The Maharashtra CM promised to engage with organistions like Moneylife Foundation to address citizen’s issues
 
Devendra Fadnavis, the chief minister of Maharashtra, while speaking at Moneylife Foundation’s 5th anniversary, said, financial literacy would help people to understand risk and returns better, thus saving them from being duped.
 
Addressing a crowd of over 650 prominent citizens, businessmen, bankers, management students, activists and whistle-blowers, the chief minister (CM) said, “Financial inclusiveness requires financial literacy. People are always in need of an instrument for saving. However, most of the time, they do not look at the ‘scheme’ or who and why it is offering such high return. People do not even look at similar instruments in the market. We get attracted to higher interest rates without checking the credentials of the offering party, and, several times, this ends in severe losses for investors.” 
 
“एक आदमी था वह सौ का माल पचास में बेचकर लखपती बन गया. िकसीने पूछा ये कैसे हुआ? तो बोले, पहले वह करोड़पती था! (There was a man who became millionaire by selling an item worth Rs100 at Rs50. Someone asked, ‘how is this possible’? He was billionaire before!!),” the CM said in a lighter vein, warning investors to be aware about the fact that nobody is in the market to give ‘fancy or sky-high returns’.
 
The CM flagged online economic offences as the biggest emerging challenge for the government. He explained how one of the provisions in the Information Technology (IT) Act has been hampering a fast probe in such crimes. Mr Fadnavis said that the IT Act mandates that complaints must be registered and probed by an officer who is not less than a police inspector (PI) in rank. However, most PIs, having joined the police force before the IT Act came into effect or the big spread of technology, are not tech-savvy. On the other hand, several police sub-inspectors (PSIs) have sound knowledge and know how to use technology for investigations. 
 
Mr Fadnavis said, “We have requested the Centre to make suitable amendments in the IT Act to allow officers of PSI rank to register and probe online frauds.”
 
The CM delighted Moneylife Foundation members when he said, “Our government would like to work with institutions like Moneylife Foundation to make people financially literate. In addition, based on the ground-level inputs from such institutions, we would also like make policies for investors. This will help people understand the difference between gain and loss on their investment.”
 
Moneylife Foundation’s 5th anniversary event was attended by a wide cross-section of activists and NGOs representing diverse interests—from civic issues, to banking, environment, transport, noise pollution, railways, senior citizens’ groups and even the Forum of Free Enterprise. When the CM agreed to a brief interaction, Sailesh Mishra, from the Silver Innings Foundation, led a team of the joint advisory committee of senior citizens organisations and submitted a memorandum to the CM on issues faced by seniors.
 
Right to Information (RTI) activist and former central information commissioner, Shailesh Gandhi and Ashok Ravat, honorary secretary of All India Bank Depositors’ Association (AIBDA) asked questions about the Right to Services Act.

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