Regulations
SAT upholds SEBI order in Bank of Rajasthan case

In March, SEBI had withdrawn a ban against 100 entities belonging or linked to the Tayal group, after barring these entities for two years from the markets

 
Mumbai: The Securities Appellate Tribunal (SAT) has upheld an order issued by Securities and Exchange Board of India (SEBI) that the appellant -- a shareholder of Bank of Rajasthan -- is not affected by the regulator's decision to lift ban on the lender's 100 promoter entities from accessing the capital market, reports PTI.
 
A person aggrieved is one whose financial interest is directly affected by a decree and judgement and is entitled to bring an action challenging the legality of the judgement.
 
"In the facts and circumstance of the present case, we are of the view that no case is made out by the appellant (Radheyshyam Agarwal) to show that he is a "person aggrieved," the tribunal said.
 
"...We, therefore, uphold the preliminary objection of the Board (SEBI) and hold that the present appeal is not maintainable since the appellant is not a "person aggrieved" by the impugned order," it added.
 
In March, SEBI had withdrawn a ban against 100 entities belonging or linked to the Tayal group, observing that all these entities have been debarred for the last two years from the securities markets and that there is no need to continue the directions any further.
 
The regulator in March 2010 had barred these entities from the share market for allegedly violating rules including takeover norms and fraudulent practices.
 
The revocation had came despite an investigation finding violations by 92 out of the 100 entities. But SEBI had recommended adjudication proceedings against them. Even as the proceedings would continue, the regulator said all the 100 entities are free to participate in the market.
 
SEBI in its interim order dated 8 March 2010, had restrained 100 entities from accessing the securities market and further prohibiting them from trading in stock market till further directions.
 
As per an earlier SEBI order, the promoters had conveyed that they were reducing their shareholding in Bank of Rajasthan (now merged with ICICI Bank) from 44.18% as of three months ended June 2007 to 28.61% as of the quarter ended December 2009 to comply with a Reserve Bank of India (RBI) directive to reduce stake.
 
However, it was noted by SEBI that their shareholding had in fact increased and no disclosures relating to increase in the stake were made to the stock exchange or to the public by any of the concerned entities.
 
Agarwal, in its appeal to the tribunal, said that the prohibitory order issued on 8 March 2010 against these entities should have been continued as the proceedings are still continuing and charges against entities are of violating of the takeover code.
 

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Visa Movida to go live next month with HDFC Bank

HDFC Bank account-holders will be able to do remote transactions like money transfer to other account-holders, mobile payments and ticketing on the Movida platform promoted by Visa

 
Mumbai: Visa-promoted Movida mobile payments platform will be going live next month with the second largest private sector lender HDFC Bank as its banking partner, reports PTI quoting a top official of Visa.
 
"Movida will go live next month...on HDFC Bank it should be live. Other banks are in the pipeline," Visa country manager for India and South Asia Uttam Nayak told PTI.
 
The work of integration and testing is on right now, before the product goes live, he said.
 
Movida, an equal joint venture between Visa and the LSE-listed mobile banking solutions company Monitise, had in February this year announced a tie-up with HDFC Bank for the platform.
 
The product is pitted against the interbank mobile payment service (IMPS) launched by the National Payments Corporation of India (NPCI), which already has 50 banks as members.
 
Nayak said even though it is starting up with only HDFC Bank, the company is in talks with other lenders to grow the network of banks as the solution is designed for inter-bank operability.
 
He, however, declined to give any names or the number of banks the company is in talks with.
 
Nayak said to start with, HDFC Bank account-holders will be able to do "remote" transactions like money transfer to other account-holders, mobile payments and ticketing, while the next phase will involve "face-to-face" transactions like merchant payments.
 
When asked about the IMPS, he said, Movida will be competing with the NPCI platform, but it has some differences.
 
The IMPS is an account-to-account transfer of money and requires a special registration while the Movida solution will allow for a card-to-card transfer of cash using the mobile platform, he said.
 
Nayak conceded that NPCI's IMPS being the entrenched player has got an advantage in the sphere, but said the market opportunity to be tapped is very large which gives space to newer players as well.
 

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CBI arrests UCO Bank official on graft charge

A senior manager from UCO Bank had demanded Rs15,000 as bribe for sanctioning subsidy of Rs5 lakh as per the state government norms on a loan of Rs17 lakh

Patna: The CEntral Bureau of Investigation (CBI) has arrested an official from UCO Bank for taking bribe of Rs15,000 from a person in Bihar's Munger district, reports PTI quoting sources.

 

Acting on a complaint, the CBI sleuths laid a trap and caught the UCO bank senior manager RN Prasad red-handed as he took the bribe amount at this office in Munger town, CBI Additional Superintendent of Police (ASP) JN Mishra said.

 

The bank official had demanded the money for sanctioning subsidy of Rs5 lakh as per the state government norms on a loan of Rs17 lakh granted to one Gautam Singh, he said.

 

Singh had subsequently lodged a complaint with the CBI and the agency laid a trap and caught the bank official red-handed while taking the bribe, the CBI ASP said.

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