SAT said, after taking into consideration all mitigating factors, SEBI has imposed a penalty of Rs7 lakh on IndiaNivesh Capital as against penalty imposable at Rs1 crore, which can't be said to be arbitrary or unreasonably excessive
The Securities Appellate Tribunal (SAT) dismissed plea of IndiaNivesh Capitals against an order issued by market regulator Securities and Exchange Board of India (SEBI) slapping a fine of Rs7 lakh on the company for failing to make shareholding disclosures within the stipulated time.
The SEBI in March had imposed a penalty on the company for the delay of more than 16 months in making disclosures.
IndiaNivesh Capitals (erstwhile Jupiter Enterprises Ltd) approached SAT saying that the decision of the market regulator was 'arbitrary and unreasonably excessive'.
In an order, SAT said that "in the present case, penalty imposable upon the appellant for failure to make disclosures (under SEBI's norm)...would come to more than Rs1 crore for the delay of 16 months and 6 days."
However, SEBI after taking into consideration all mitigating factors has imposed penalty of Rs7 lakh as against penalty imposable at Rs1 crore, which can't be said to be arbitrary or unreasonably excessive, SAT noted.
It said the company having failed to comply with the disclosure requirements can't escape the penalty for the violations committed by it.
SAT said it sees no reason to interfere with the order passed by SEBI and dismissed the company's appeal.
Indian refiners will make payment in rupee to UCO Bank, which will be transferred to RBI for onward credit to the central bank of UAE. The UAE central bank will then make payments in dirhams to Iran
India will pay Iran $1.65 billion through the United Arab Emirates (UAE) central bank to clear over 40% of the backlog payments for oil imports.
Since February 2013 when the US blocked payment channels, India has been paying 45% of its oil bill to Iran in rupees through a UCO Bank branch in Kolkata. For the rest, it has been waiting for a payment channel.
As much as $4 billion has been accumulated in past dues. A payment mechanism is now in place under which $1.65 billion in three equal instalments of $550 million each will be transferred to Iran via the UAE central bank, senior government and industry officials said.
Under the two-stage payment mechanism worked out, Indian refiners, in proportion to their dues, will make rupee payment to the UCO Bank. This money will be transferred to the Reserve Bank of India (RBI) for onward credit to the central bank of UAE.
The UAE central bank will then make payments in dirhams to Iran.
Officials said the first two instalments may be paid this month and the third $550 million tranche by 20th July deadline set by the US and five other world powers for Iran to receive part of its past payments from its oil buyers.
The two instalments this month will be made up of $238 million by Mangalore Refinery and Petrochemicals Ltd, $232 million from Essar Oil, $57 million by Indian Oil Corp (IOC), $8 million by Hindustan Petroleum Corp Ltd (HPCL) and $15 million by HPCL Mittal Energy (HMEL).
Iran is seeking interest on pending dues. However, the Indian government as well as the RBI have flatly refused to pay interest saying they have always been ready to make timely payments but the problem of mode and channel were due to Iran.
Under an interim nuclear deal with US and five other world powers, Iran on 24 November 2013, won access to $4.2 billion in past oil revenues from a number of countries including India.
The funds, which previously could not be transferred as western powers clamped down on payment routes, were to be paid in eight instalments of $550 million each beginning with the first transfer by Japan on 1st February.
South Korea was to make two payments in March totalling $1.1 billion and India was to make its first payment on 17th May, but in absence of payment modalities it was delayed.
There is now a broad understanding on the payment route and subject to agreement with Iran the first tranche may go out as early as next week, officials said.
India had been, since July 2011, paying in euros to clear 55% of its purchases of Iranian oil through Ankara-based Halkbank. The remaining 45% due amount was remitted in rupees through UCO Bank.
Payments in euro through Turkey ceased from 6 February 2013 but the rupee payments for 45% of the purchases continued through UCO Bank.
India’s high budget deficits are partly due to a large population and low per capita income levels, which increase macro-economic imbalances and thus 'expose the economy to shocks', say Moody’s
Indian economy is exposed to 'shocks' due to high fiscal deficit and the country’s credit outlook will depend on the Narendra Modi government’s initiatives in the next month’s budget to contain expenditure and reduce exposure to global commodity prices, says Moody’s in a research note.
The ratings agency said, “More relevant to (determine) the sovereign credit outlook will be whether the budget includes measures that address the Government’s low revenue base, high current expenditures and exposure to commodity prices”.
India’s budget deficit is high and this increases macro-economic imbalances and thus 'expose the economy to shocks', Moody’s Investors Service said in the report titled, “Frequently asked questions on India’s fiscal position and the forthcoming budget”.
“In absence of measures to reduce the fiscal deficit, the future high growth rates many forecast for India may not be realised. The July Budget could indicate whether fiscal constraints on India’s sovereign credit profile will ease over the coming years,” it added.
The Union Budget is expected to be presented in the second week of July.
Whether the new government’s FY15 deficit estimate is above or below the previous regime’s estimate of 4.1% of GDP, it will not be the key determinant of India’s credit outlook, Moody’s said. The deficit in 2013-14 fiscal was 4.5%.
Moody’s assigns a ‘Baa3’ rating on India, with a stable outlook.
“India’s high budget deficits are partly due to a large population and low per capita income levels. Low income levels limit the government’s tax revenue base and at the same time drive socio-political pressure to increase government spending on subsidies and economic development,” it added.
However, Moody’s said that other countries with low per capita income have avoided deficits as large as India’s. This suggests that fiscal discipline can improve budget outcomes despite structural challenges.
The report added that wide budget deficits have kept India’s inflation high and contributed to a widening current account deficit between 2011 and 2013, which heightened exchange rate volatility and resulted in higher domestic interest rates.
These trends have exacerbated the slowdown in GDP growth since 2011, it added.
The report outlines the reasons behind India’s high fiscal deficits, provides a comparison between recent fiscal developments in India and in other similarly rated countries, explains how fiscal policy has affected growth and addresses the possible credit implications of the newly elected Government’s forthcoming budget.