SAT quashes SEBI order against NSDL in IPO scam

The irregularities during 2002 to 2006 by NSDL related to cases of IPO scam and trading in unlisted shares of DSQ Software upon irregular dematerialistion

The Securities Appellate Tribunal (SAT) has quashed an order passed by Securities and Exchange Board of India (SEBI) in December 2008, but implemented only in July 2011 after being dismissed initially as 'null and void' against National Securities Depository Ltd (NSDL).

 

SAT had passed a similar order last month after hearing another appeal filed by the  NSDL against another order from SEBI in the same case.

 

In its latest order, dated 30 August 2013, the Tribunal observed that the facts in the earlier appeal filed by NSDL were similar to facts in the present case, and therefore it directed that the SEBI order in the present appeal be also "quashed and set aside".

 

The two SEBI orders, passed on 4 December 2008, asked NSDL to conduct an independent inquiry to fix individual responsibility for failure at the Depository in the wake of initial public offering (IPO) and demat scams between 2002-2006. NSDL board was also directed to conduct an independent audit of its systems and operations to identify the remedial measures.

 

After hearing NSDL's appeal against these orders, SAT last month ruled that independent probes have already been carried out by depositories and remedial measures have been taken after ascertaining that there was no individual complicity.

 

"Therefore, at this belated stage directing the appellant (NSDL) to institute fresh inquiry to fix individual accountability...Is wholly unjustified and unreasonable. Accordingly, we quash and set aside the impugned order dated December 4, 2008.

 

"This order, however, will not come in the way of the respondent to seek compliance of any other remedial measures that may be suggested by the respondent with a view to strengthen the Depository system," SAT had said in its order.

 

The orders were originally passed by a SEBI committee in December 2008, but were later dismissed as "null and void" by the board of the market regulator.

 

However, an intervention by the Supreme Court in July 2011 forced the market regulator to revive the matter and SEBI's board on 28th July that year took an unprecedented decision of reviving the charges declared as "non-existent" in the past.

 

Subsequently, SEBI implemented the orders and served them to NSDL on 29th July  for compliance, which included an independent audit of systems and operations within six months.

 

This was the first instance of SEBI revisiting an issue previously dismissed by it, as also an unprecedented case of the regulator being open to a report, where its own role had been criticised.

 

The irregularities during 2002-06 by NSDL related to cases of IPO scam and trading in unlisted shares of a company DSQ Software upon irregular dematerialistion.

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CVC says 113% surge in corruption complaints in 2012

Out of the total of 37,208 complaints received by the CVC, the highest of 10,337 were received by the Railways, 7,336 by banks, 4,228 by GNCTD, 3,757 by I-T department and 3,487 were related to Urban Affairs

There has been a quantum jump in the number of complaints of corruption received by the Central Vigilance Commission (CVC) last year as against those in 2011.

 

The Chief Vigilance Officer (CVO), who acts as distant arm of CVC, of Railways has received a highest of 10,337 complaints of alleged corruption against its employees and in projects being executed by the largest public sector employer as compared to other departments, says an annual report for 2012 of the transparency watchdog.

 

"The Commission received more than 37,000 complaints during 2012 as compared to 17,407 complaints in 2011 which is 113% more than that of previous year," it said.

 

Out of the 37,208 complaints received by the CVC, 33,308 were disposed of during 2012 and 3,900 complaints were pending at the end of the year, said the report tabled in the Parliament recently.

 

"In majority of complaints, the allegations were found to be either vague allegations or containing administrative issues. The Commission also received a considerable number of complaints against public servants working in the state governments who do not come under the jurisdiction of the Commission," it said.

 

The CVC has received 10,142 complaints in 2008, 14,206 in 2009 and 16,260 in 2010. Of these, 10,188 were disposed of in 2008, 13, 919 in 2009 and 16, 211 in 2010 respectively, the report said.

 

The Commission also complained lack of staff despite "manifold increase" in volume of its work.

 

"Despite the manifold increase in the volume of work being handled by the Commission, there has been no increase in the staff strength. Complaints received in the Commission are processed electronically through Information Technology enabled core processes to ensure speed and transparency," it said.

 

Out of the sanctioned strength of 296, the CVC has 244 officials in position.

 

According to the report, CVOs of various government organisations have received as many as 48,553 complaints of alleged corruption between January and December 2012. Of these, a highest of 10,337 were received by the Railways, 7,336 by banks, 4,228 by Government of National Capital Territory of Delhi (GNCTD), 3,757 by Income Tax department and 3,487 were related to Urban Affairs (Urban development or DDA among others).

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COMMENTS

kakarla rangaiah

3 years ago

cvc will receive a flood of petitions provided it gives vide publicity regarding their address, and web site

Lok Sabha 2014: Vinita Deshmukh is Nav Bharat Party’s candidate from Pune

Vinita Deshmukh would be the candidate for the Nav Bharat Democratic Party from Pune Lok Sabha constituency. The party is constituted by some of the finest brains from the tech-world

Nav Bharat Democratic Party, the newest entrant into political arean has decided to field Vinita Deshmukh, a multiple award winning journalist from the Pune Lok Sabha constituency in upcoming Lok Sabha elections. Ms Deshmukh is also an RTI activist, convener of the Pune Metro Jagruti Abhiyan and consulting editor of Moneylife.

 

RK Misra handing over Party’s logo to Ms Deshmukh to mark her candidature for the Pune Lok Sabha constituency

 

Although, the Party has not declared names of other candidates for different locations, reportedly, it may field Meera Sanyal, the former chief executive and chairperson of Royal Bank of Scotland (RBS) in India from Mumbai. In 2009, she was independent candidate in the Lok Sabha elections from Mumbai south constituency.   

 

Nav Bharat Democratic Party, formed by Rajendra Kumar (RK) Misra does not have any affiliations with other political parties in India. It calls itself a socially progressive and economically efficient party which promises to provide clean governance devoid of any form of discrimination based on religion, caste, faith, occupation or political conviction.

 

The Party’s profile on Facebook states various tenets including,

1. Transparency in selecting credible candidates.
2. Efficiency through scientific election management.
3. Accountability to Nav Bharat electorate rather than Nav Bharat itself.
4. Mobilizing the youth.
5. Starting with analytically identified ‘winnable’ constituencies.
6. Voter registration.
7. Power of media.
8. Endorsement from National icons.

 

The party has its presence in the heartland states of Bihar, Uttar Pradesh, Orissa, in the north covering Haryana, Delhi and Uttarakhand and Maharashtra, Goa and Kerala, Karnataka spanning the west and south of the country respectively. The party plans to field about 80 candidates spanning 4 to five states. As of now, the party has not nominating any candidate from Mumbai, citing complexity to find a suitable candidate.

 

The Nav Bharat party has among its founders and supporters professionals such as  Arundhati Joshi, co-founder of PLAZMA technologies, Suhas K Nerurkar, a techie and IITian associated with ATM technology, Sunil Jalihal, techie and entrepreneur, and  Krishnakumar Iyer or KK who has over 28 years of experience in the IT industry besides several eminent personalities from IT.  

 

RK Misra, co founder of the party is a firm believer in the “doer” quotient of the running the country. He is the founder of the country’s first travel web portal, Traveljini.com.

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COMMENTS

R Balakrishnan

3 years ago

Go for it. If we can be of help, please let us know. Be a pleasure.
All the best

nagesh kini

3 years ago

All the best Vinita!

nagesh kini

3 years ago

All the best Vinita!

nagesh kini

3 years ago

All the best Vinita!

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