Companies & Sectors
Sahara freeze order gets SEBI Rs52 crore in cash, investments
After passing its attachment orders, SEBI informed all the banks, depositories, mutual funds and NBFCs, among others, about the matter and also requested the RBI to direct the chiefs of the banks to transfer the money of Sahara firms to a designated SEBI account
 
Market regulator Securities and Exchange Board of India (SEBI) has been able to get hold of cash and investments totalling about Rs52 crore and details of more than 450 acres of land so far through its attachment orders against Sahara group entities.
 
In the high-profile case involving refund of over Rs24,000 crore to the bondholders of two Sahara companies, SEBI had passed orders for attachment of various properties and freezing of accounts in February after the entities failed to deposit the entire money.
 
The cash totalling over Rs23 crore, received from various banks pursuant to these orders, has been invested in a term deposit for now, while investments worth about Rs28 crore in mutual funds and demat accounts have also been frozen, sources said.
 
After passing its attachment orders, SEBI informed all the banks, depositories, mutual funds and NBFCs, among others, about the matter and also requested the Reserve Bank of India (RBI) to direct the chiefs of the banks to transfer the money of Sahara firms to a designated SEBI account.
 
SEBI had also approached the collectors of as many as 600 districts to request them not to permit the concerned Sahara entities and persons from any sale or transfer of properties attached by the regulator.
 
As a result, the district collectors and revenue officers from various parts of the country have provided SEBI details of more than 450 acres of land belonging to Saharas, sources added.
 
The regulator has already asked the Supreme Court to allow it to appoint an Officer on Special Duty and other officers to deal with the objections and claims relating to the property to be sold and for conducting the sale of the property to garner funds for refunding the investors’ money.
 
The Saharas have so far deposited Rs5,120 crore with SEBI towards the refund and claims that this amount is more than sufficient to meet the outstanding liabilities towards its bondholders as the group has already paid close to Rs20,000 crore directly to the investors.
 

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Interest rate on Provident Fund likely to remain unchanged at 8.5% in FY14
One of reason for proposing to keep the rate of interest unchanged for this fiscal is slight drop in government securities yield, according to government sources
 
Retirement fund body Employees Provident Fund Organisation (EPFO) is likely to pay an interest rate of 8.5% on provident fund deposits for 2013-14 to its over five crore subscribers, the same as provided in 2012-13.
 
“The rate of interest on PF deposits is unlikely to be changed for the current fiscal at 8.5%,” a source privy to the development said.
 
EPFO paid 8.5% interest rate to its subscribers in 2012-13 which was higher than 8.25% provided in the 2011-12 fiscal.
 
The source further revealed that the EPFO office has already worked out the income projections and the feasible rate of return to be provided on PF deposit in the current fiscal.
As per the practice, the EPFO would have to place the proposal before its advisory body Finance and Investment Committee (FIC) after which it is considered by the apex decision making body Central Board of Trustees (CBT) headed by the labour minister for taking final call on the matter.
 
Once approved, the proposal is put before the finance ministry for its concurrence.
The EPFO has recently reconstituted the CBT and thus the FIC would be constituted again in the next meet of trustees.
 
According to the source, the CBT meeting is likely to be convened next month as the new Central Provident Fund Commissioner, KK Jalan, who is executive head of EPFO has taken charge.
 
The source said that one of reason for proposing to keep the rate of interest unchanged for this fiscal is slight drop in government securities yield.
 
As per the 2008-Investment Pattern adopted by the EPFO, the body can invest up to 55% of its huge corpus of over Rs5 lakh crore in the state and central securities.
 

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COMMENTS

D A Bhatt

4 years ago

As per my perception and opinion the rate of return means interest rate of CPF,GPF, EPF,EPS and PPF should be same and exactly equal. And no difference at all.

Unquoted: Venkat Pharma

Stories of price manipulation


Venkat Pharma (Rs5)

The company is supposedly into pharmaceuticals, but nobody knows what its business is really. The BSE does not make its annual reports available and the company’s website is not functional. How does the BSE expect small investors to obtain information? Venkat Pharma has been implicated by the BSE in the past for non-compliance of shareholder as well as corporate governance norms, in June 2011 and December 2011, respectively.
The company’s fundamentals are bizarre. It generated no sales at all for the past six quarters ending December 2012 and did not generate a single rupee of profit. In fact, in the past six quarters, it recorded losses in all the quarters. However, you will be shocked to learn about how its share price has moved. Despite such lousy fundamentals, the stock price rose a whopping 178% within three months (5 March 2013 to 13 June 2013), from Rs1.87 to Rs5.20. SEBI, which has spent crores of taxpayers’ rupees over the past decade on its ‘modern’ surveillance systems to catch precisely such cases, has remained shamelessly quiet. Blatant price-rigging continues unabated.

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