Economy
SBI index foretells low growth
Bank credit to domestic export sector has suffered due to fall in external demand as is visible in major export sectors like textile, gems and jewellery leading to contraction in demand of credit
 
The yearly State Bank of India (SBI) Composite Index for March 2016 has declined below 50 and is at 49.5 (low decline), compared to last month index of 51.3 (low growth), portending low growth. 
 
"The good news is that the fortnightly data of all scheduled commercial banks (ASCB) indicates that credit off-take (YoY) has increased to 11.5% as on 4 March 2016, compared to last year growth of 9.8% on 6 March 2015. However, refinancing constitutes much of the credit growth, hence it may be difficult to say whether credit growth has picked up materially or in a sustained manner," the SBI said in its Ecowrap note.
 
 
"In particular," it said, "bank credit to domestic export sector has suffered due to fall in external demand as is visible in major export sectors like textile, gems and jewellery. This has led to contraction in demand of credit. Furthermore instances of dumping have made revival of certain sectors difficult, thus depressing the demand of credit. In case of pure intermediate goods sector like mining, the fall in commodity prices has dented margins in mining. At the current low levels of prices, it is difficult to market a low grade ore with higher extraction cost."
 
According to the SBI Ecowrap, the incremental lending has been mostly to the personal loan segment, especially housing, and also Mudra. The overall credit-deposit ratio is at 77.1 as on 4 March 2016 from 76.4% a year ago and 76.6% in 20 March 2015.

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COMMENTS

Sunil Anand

8 months ago

hopefully there's a brighter side, and there would be good growth in the future..

finwizz.com

Finally, penny stock manipulation under CBDT scanner, even as SEBI sleeps
Moneylife has been highlighting rampant manipulation in penny stocks for the last seven years, but there has been no action by SEBI. The CBDT has now been forced to issue a direction seeking information on investment in penny stock where prices were rigged
 
The Central Board of Direct Taxes (CBDT) has issued instructions to carry out detailed enquiry of taxpayers who had invested money in penny stocks, whose share prices were artificially raised for booking bogus claims of long term capital gains (LTCG) or short term capital loss (STCL) by various beneficiaries.
 
The order issued on 16 March 2016, says, "...the said instruction is in the context of investigation conducted by Kolkata Investigation Directorate in respect of large number of penny stock companies, whose share prices were artificially raised on the Stock Exchanges in order to book bogus claims of long term capital gains or short term capital loss by various beneficiaries. Extensive investigation, including search and seizure/ survey action on entry providers, riggers, beneficiaries etc. was conducted by the Investigation Directorate in such cases. Based upon outcome of such investigation and analysis of the data, the Systems Directorate has now uploaded details of such information in respect of individual assessees who have made transactions in such penny stocks."
 
"Vide EFS Instruction under reference a new button 'Penny Stock' has been added on Individual Transaction Screen (ITS) to display information related to penny stock, now enabled on the screen of the Assessing Officers (AOs). Available information regarding the manipulative transactions has been captured in the functionality, including the investigation report of the Kolkata Investigation Directorate. The functionality also contains a guidance note for the Assessing Officers. Such details are visible to the AOs of those assessees whose particulars have emanated out of the investigation report of Kolkata Investigation Directorate and whose cases have been considered actionable, at this stage. The details are also visible to supervisory officers of such AOs," the order says.
 
Moneylife routinely writes about many such stocks, in the every issue of the magazine’s Unquoted section (http://www.moneylife.in/markets/unquoted), where stock prices either have rocketed or cratered without any respect to stock fundamentals. Moneylife also carried an exclusive Cover Story in 2012 (http://www.moneylife.in/article/stock-manipulation/27957.html), which saw many stocks rising and falling right under the nose of Securities & Exchange Board of India (SEBI).
 
However, the latest directions from CBDT follow a 'secret' letter from Shaktikanta Das, then revenue secretary, to the SEBI Chairman. In this letter sent last year, Mr Das has informed the SEBI Chairman about "investigation carried out by the Income Tax Department (ITD) showing regulated securities or commodities market mechanism being misused for large scale systematic tax evasion and round tripping of unaccounted funds... to generate fictitious LTCG."
 
"Such rampant manipulations call for concerted and coordinated action by the agencies concerned. SEBI's proactive role in the above context is crucial," Mr Das has written in the letter.
 
In December 2013, the SEBI Board approved the SEBI (Procedure for Search and Seizure) Regulations, 2013, made on the lines of the provisions in the Income Tax Act, 1961 and for providing the detailed procedures for such search and seizures by SEBI. This conferred direct powers on SEBI chief to authorize the investigating authority or any other officer of SEBI to search any premises where incriminating documents are lying and seize such documents for the purpose of investigation. The Ordinance also empowers SEBI to make regulations for executing the search operations and to ensure safe custody of any books of account or other documents that are seized.
 
However, nothing much happened despite SEBI gaining such powers.  
 
In his letter, Mr Das further stated, "Investigations conducted by ITD in the transactions of the aforesaid nature could not bear the desired fruits inter alia for the reasons that in most of such transactions the regulators concerned such as SEBI did not record any adverse finding qua such transactions. Judicial authorities have held that unless the corporate veil is lifted, onus on revenue is not discharged. The action taken by SEBI in such cases unravelling the facade is of critical importance, in these cases for effective handling of menace of bogus LTCG."
 
Mr Das also highlighted the time limit on such cases. "...income-tax Act, 1961, prescribes time limits within which assessments can be completed and tax demands can be raised. Therefore, timely action from SEBI in such cases would help in ensuring appropriate actions by the Income Tax authorities. SEBI may take note of violations of KYC norms by the stock brokers for further appropriate action," he concluded.
 
Earlier, in 2014 and 2015, SEBI had grandly claimed that it has busted schemes, which misuse the stock market platform for money laundering. Obviously, what SEBI claimed as a huge crackdown on those two occasions, hardly scratched the surface. 
 
Last year, to check market manipulation through penny stocks, the market regulator came up with and idea to create a new group T+ for scrips that are found to be prone to market manipulation. 

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COMMENTS

Ramesh Poapt

9 months ago

one more good one from ML!!!

Vinayak Bhimrao Mudholkar

9 months ago

Will genuine traders/investors in small/micro cap segment be harassed?

Even bumblebees don't like to share expertise with newcomers
London : You may compare this with human attitude to a certain extent but when it comes to well-qualified bumblebees, they do not like sharing their pollinating knowledge with the less experienced bees and even attack newcomers in the field, researchers report.
 
The study focused on whether bees can copy other bees' flower visitation sequences in the field to improve their foraging and to show how animals with relatively simple brains find workable solutions to complex route-finding problem.
 
"Like other pollinators, bees face complex routing challenges when collecting nectar and pollen. They have to learn how to link patches of flowers together in the most efficient way to minimise their travel distance and flight costs, just like in a travelling salesman problem," explained lead author Mathieu Lihoreau from thd Queen Mary University of London (QMUL) in Britain.
 
The findings, published in the journal PLOS ONE, revealed that though the newcomers tried to copy the choices of seasoned foragers, the more experienced bees really didn't appreciate being copied.
 
"We wanted to monitor the way bumblebees behave when they bump into each other at flowers -- would they compete, attack each other, or tolerate each other?" added Lars Chittka, one of the authors.
 
The team set up one of the largest outdoor flight cages ever used in bee research and installed a range of artificial flowers, fitted with motion-sensitive video cameras which had controlled nectar flow rates for the bees to visit. 
 
The researchers then allowed two bees in at a time: One more experienced resident, and one a newcomer. 
 
While the newcomers did try to copy the choices of seasoned foragers, the more experienced bees really didn't appreciate their behaviour and frequently attacked the newcomers and tried to evict them from flowers.
 
"Our study is the first to examine the foraging routes followed by multiple bees at the same time. Responses to intense initial competition between bees for nectar could explain how pollinators gradually learn to visit different patches of flowers across the landscape," Lihoreau commented. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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