Pratip Chaudhari, chairman of SBI defended his views on CRR saying that when the deputy governor (Dr Chakrabarty) was a bank chairman, he was asking for the same
Mumbai: Making a strong case for abolition of cash reserve ratio (CRR), country's largest lender, the State Bank of India (SBI) chairman Pratip Chaudhari on Tuesday said the banks were unable to use the resources more productively, which is lying with the central bank without any interest earning, reports PTI.
Though CRR, the amount of capital that banks park with the RBI, doesn't pay any interest to banks, RBI views it as a cushion against any liquidity crisis in the system.
Yesteday, the Reserve Bank of India (RBI) deputy governor Dr KC Chakrabarty had said that banks had to work in the regulatory environment of the country.
"If the SBI chairman is not able to do business as per our regulatory environment, he has to find some other place," Dr Chakrabarty said in a sharp reaction to Chaudhuri's recent comment that CRR does not help anybody and it was unfairly put on banks.
However, Chaudhari, chairman of SBI also defended his views on CRR saying that when the deputy governor was a bank chairman, he was asking for the same.
Chaudhari also said that when the CRR rate was high and GDP was low, there was a strong inverse co- relationship.
He also said if CRR is a inflation tool, then other sectors like insurance and NBFC should also have such norm.
While lowering the fine from Rs10 lakh to Rs2 lakh, the tribunal consented with SEBI's charges that Platinum Corp never implemented certain corporate announcements made by it and its promoters and directors offloaded their holdings after a rise in share price
New Delhi: The Securities Appellate Tribunal (SAT) has upheld the charges of fraudulent and unfair stock market dealings against promoters and directors of BSE-listed firm Platinum Corp, but lowered the penalty imposed by market regulator Securities and Exchange Board of India (SEBI) to a uniform Rs2 lakh for all of them, reports PTI.
While lowering the fine from Rs10 lakh to Rs2 lakh, the tribunal consented with SEBI's charges that Platinum Corporation never implemented certain corporate announcements made by it and its promoters and directors offloaded their holding in the market after a rise in share price.
SAT, however, observed that SEBI has imposed a penalty of Rs2 lakh while passing orders against other entities involved in the same transaction.
"... there should be uniformity in imposing penalty in respect of violations which are identical in nature," it said.
"While upholding the finding arrived at by adjudicating officer (of SEBI) in the case of the appellant, we reduce the penalty to Rs2 lakh," SAT ruled, while disposing of various appeals by the promoters against SEBI's order.
SEBI on 30 January 2012 had said that it found promoter group of Platinum, a firm also listed at Ahmedabad Stock Exchange and Vadodara Stock Exchange, had dumped in the market 3,83,66,814 shares equivalent to 35.85% of the total equity within 53 trading days in 2007.
According to SEBI order, the company facilitated the entities connected to the promoter group in offloading its shares by way of pumping positive news in the market so that uninformed investors get induced to purchase the shares.
The investigation had also revealed that the promoters had transferred 20 lakh shares to one Meena Ambani, who later transferred to Exdon Trading Company Ltd. These shares were ultimately offloaded in the market when the price of the scrip went up.
Platinum Corporation, originally incorporated in 1992 in the name of Kanugo Lease and Investment Ltd, came out with a public issue in the year 1996 for 67 lakh shares of Rs10 each at par aggregating to Rs6.70 crore.
From now onwards, the affiliated stock broker has to issue a public advertisement in a local newspaper located at the sub-broker's place of work to publicly inform his/her registration
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has asked stock brokers to make a public announcement whenever any of their sub brokers surrender their registration, reports PTI.
The market regulator's directive is part of a decision to rationalise the surrender of registration by sub-brokers, given their present role, where they are not permitted to deal with funds and securities of the investors.
In a circular, SEBI said the decision has been taken in consultation with the major stock exchanges and stock brokers' associations.
From now onwards, the affiliated stock broker has to issue a public advertisement in a local newspaper located at the sub-broker's place of work to publicly inform that the particular entity is surrendering the registration.
SEBI said the modification have been introduced to protect the interests of investors as well as to promote the development and regulation of the securities market.
The affiliating stock broker also has to furnish an undertaking to the stock exchanges that clients of the particular sub broker, who is to surrender the registration, is informed about the move.
However, in the case of transition from sub broker to Authorised Person (AP) -- where the entity surrenders registration while seeking approval as AP with the same stock broker and the same stock exchange -- there is no need to issue public advertisement.
Further, the stock broker and the stock exchange would have to publish the details of sub-brokers whose registration has been surrendered or their new status as AP on their respective websites for the information of the investors.