Regulations
SEBI asks Aspen Projects, directors to refund money garnered from investors
SEBI asked Aspen Projects to refund money it collected from investors with an interest of 15%
 
Market regulator Securities and Exchange Board of India (SEBI) has asked Kolkata-based Aspen Projects India Ltd (Aspen Projects) and its directors to refund money, the company had illegally collected from investors through secured redeemable debentures and preference shares, along with an interest of 15%.
 
SEBI also prohibited Aspen Projects and its directors Abhijit Dasgupta, Bhaskar Saha, Ashim Maitra, Ujjal Kumar Roy, Avijit Kumar Ganguly, Debopam Sur and Goutam Sarkar from accessing markets for four years. In addition, Ram Sunder Bhattacharya and Mita Roy are barred from continuing as debenture trustees for the secured redeemable debentures of Aspen Projects and also from taking up any new assignments or involvement in any new issue of debentures till further directions.
 
Earlier in June, SEBI had barred Aspen Projects and directors from collecting money from investors and asked it to stop mobilising any funds, sell properties or raise any money from public.
 

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SEBI asks Aditya Global Industries to refund investors' money in three months
SEBI found that AGIL had garnered over Rs92 lakh from nearly 1,100 investors through redeemable preference shares
 
Market regulator Securities and Exchange Board of India (SEBI) has directed Aditya Global Industries Ltd (AGIL), formerly known as Angels Agro Industries, to refund in three months money, the company had illegally collected from investors, along with an interest of 15%.
 
SEBI also barred the company and its directors, Arunava Bose Munshi, Anup Kumar Munsi and Amitava Bose from markets for four years. The regulator has AGIL and its directors to refund money collected through issuance of preference shares with an interest of 15% per annum compounded at half yearly intervals within three months.
 
Probe by the market regulator found that AGIL had garnered over Rs92 lakh from nearly 1,100 investors through issuance of redeemable preference shares, which according to SEBI rules was a 'prima facie' violation of public issue norms.
 
The regulator had observed that AGIL's issue was made to more than 50 people which, under the rules, made it a public issue of debt securities requiring compulsory listing on a recognised stock exchange. AGIL was also required to file a prospectus, which it failed to do. 
 
SEBI also asked Aditya Global Industries to "issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily (in Bengali) with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within 15 days of this order coming into effect."
 
The company has to file a report of completion of repayment with SEBI within three months and have to provide a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form, SEBI said.
 
AGIL (formerly known as Angels Agro Industries) and its directors have been "restrained and prohibited from buying, selling or otherwise dealing in the securities market, till the expiry of four years from the date of completion of refunds to investors".
 
In case AGIL fails to comply with the directions, SEBI said it would make a reference to the state government/local police to register a civil/criminal case against the company and its directors. The market regulator said it would also make a reference to Ministry of Corporate Affairs to initiate the process of winding up of the company.

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COMMENTS

Phinjo Dukpa

6 months ago

all the people kept their money in such company but they break their trust strict action must be there they all are not allowed to raise funds from public because the public had face much more difficulties

Indian Export Performance - is it that bad?
It is entirely possible, that volumes of some of our export items are actually going up, but it is not being reported because prices are down by much more
 
A lot has been written, discussed and debated over the monthly Indian export numbers, which have been falling for the last 8-9 months. In most months, it has been a double-digit decline. Sometimes the fall has been as high as 20%. Obviously, it does not look or feel good. It has been linked to how bad the situation is for the manufacturing sector and how, in general, the industry is not doing well.
 
To sum it up, the situation is bad. Or, is it that the situation "looks" bad?
 
To do a broad-level analysis, I am using the April-June 2015 exports numbers. Whether we can extrapolate that analysis to the whole of the last nine months, or not, can be debated, but I am hoping it gives a sense, at least.
 
The table below gives the export numbers for April-June 2014/2015 with a break-up of different heads or businesses.
 
Table 1
 
Exports for the period have fallen by about 16%, which is around $12.8 billion in absolute terms.
 
The numbers have been given under 21 different heads. But it would be too much to go into the details of each of them. So, we restrict to the top heads, which account for most of the fall in exports.
Let us have a look at them in brief.
 

Petroleum 

 
Let us get to the Big Daddy first. Exports numbers are down from $16.7 billion to $8.2 billion. A fall of 51%. This is $8.5 billion out of the total drop in exports of about $12.8 billion calculated above.
 
If one goes by the data available on the Petroleum Planning and Analysis Cell (PPAC) website, about 80% of this fall can be attributed to the steep fall in crude oil price itself (which is of the order of 45% y-o-y).
 
And it would not be outrageous to suggest that the volume drop is also a big function of how the demand behaves in the face of deflation (i.e. some temporary postponement of purchases). It is likely that a big chunk of the lost volumes maybe recovered later.
 
Petroleum products are all about refineries. How does this 51% fall in exports affect refineries?
 
Refineries work on the gross refining margin (GRM) basis, which is basically spread between crude price and price of derivatives like petrol and diesel. As long those spreads are in the acceptable range or have not changed much (in fact, most refineries have done very well on the GRM front in Q1 FY16), it would not materially affect them. Volumes do affect them, but there is a big possibility of recovering those later.
 
In fact, some of those export volume drops will also be a function of growing local demand. Refineries have not expanded majorly and any growth in local demand means there is that much less to supply on the exports side.
 
Net net.... I would think...effect of this reported 51% fall in petroleum exports is far less (almost negligible) than what the number suggests. (Inventory losses, if any, are out of scope for the topic of discussion).
 
And this drop in petroleum exports is 2/3rd of the total drop in exports reported for the April-June 2015 period.
 

Agri and Allied Products

 
The second biggest contributor to the export fall in absolute terms in this period. It is about $1.8 billion.
 
Have a look at the top contributors to the fall within the head:
 
Basmati Rice is again a case, where the price of product itself has gone down in the range of 20%-30%. So, there should be no surprises, if the export value goes down by something similar.
 
I am no agri-expert, but should it surprise, if in a year with poor monsoon and stagnant or falling production of most agri-products, their exports are down?
 
This has mostly to do with monsoon and its effects rather than any structural issues, whether policy-wise or demand-wise. There are a lot of other agri-products, whose exports have fallen where reasons are likely to be the same and have contributed to the overall fall.
 
This number of $1.8 billion is about 14% of overall fall of $12.8 billion. So, we have discussed about 80% of the fall in export numbers. There are many other heads under which exports have fallen.
 
For example, gems, jewellery, base metals, ores, minerals, plastics, and textiles. These individually may contribute $100-500 million to fall in exports. Again, most of these sectors have their basic commodity facing deflationary pressures and thus obviously have reported falling turnovers.
 
It is not clear if this rough analysis can be extended across the year or to the previous 9 months, but the broad story behind the decline of exports is unlikely to change much.
 
This analysis is also not to suggest that there are no difficult spots or industry situations at all. There will surely be some of them. But they are not the ones contributing in a major way to the export numbers or their decline.
 
There is also no denial that given our share of global exports, we should do far better than be happy with stagnant volumes.
 
However, the image that is created by a 15% or a 20% fall in exports is probably not the reality. It is not as if overall export volumes are crashing at that rate and industry is suffering. It is entirely possible, that for some of them volumes are actually going up but it is not getting reported because prices are down by much more.
 
A lot of deflation and its effects are being built into the numbers. These, obviously are contributing towards creating a base, which few months down the line, will probably make the export numbers look very decent on a y-o-y basis.

 

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COMMENTS

Manoj

2 years ago

Thank you for analyzing the numbers for us. Educative. Would you like to add if government is focussing on exports at all, or is it trying to get investments into india & build up local supply chains? What is your view of the future

Anil Agashe

2 years ago

So the writer should actually say that demand for more incentives and subsidies for this sector are not called for!
The truth is that we have not been able to find new markets and we wish to continue with traditional markets only.
On prices going down it is also more true of imports.
I am unable to understand why the CAD is not declining in this case?

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