Regulations
SEBI attaches PACL assets worth over Rs49,100 crore

Since PACL and its promoters-directors failed to refund money to investors as per the directions of SEBI and SAT, the market regulator said it has initiated the recovery proceedings

 

Market regulator SEBI said as part of its recovery proceedings, it has attached all bank and demat accounts, mutual fund portfolios of PACL Ltd and it eight directors and promoters with immediate effect.

 

In a release, SEBI said, the recovery proceedings have been initiated for their failure to comply with its order issued on 22 August 2014 directing, PACL and its directors and promoters to wind up the schemes, and refund Rs49,100 crore to the investors within three months from the date of the order. This amount is excluding further interest and all costs, charges and expenses incurred in the recovery proceedings.

 

Besides PACL, its promoters and directors against whom SEBI has initiated the proceedings, are Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Nirmal Singh Bhangoo, Tyger Joginder, Gurnam Singh, Anand Gurwant Singh and Uppal Devinder Kumar.

 

The mobilisation of funds by PACL traces back prior to 1997. Upon receipt of a complaint, SEBI on 30 November 1999 and 10 December 1999 issued letters asking PACL to comply with the provisions of the collective investment scheme (CIS) Regulations.

 

PACL challenged these letters before the High Court of Rajasthan in December 1999, claiming that its scheme does not fall under the definition of CIS as defined under the CIS Regulation and SEBI Act. PACL also challenged the constitutional validity of the CIS Regulations.

 

The Rajasthan High Court on 28 November 2003, held that PACL's schemes were not CIS as defined under Section 11AA of the SEBI Act. The HC also quashed SEBI's letters issued to PACL.

 

SEBI filed an appeal before the Supreme Court against the order of Rajasthan HC. The SC on 25 February 2013, while allowing the appeal upheld the constitutional validity of CIS Regulations, and directed SEBI to investigate the matter and take appropriate actions.

 

After conducting inquiry, SEBI on 22 August 2014, issued an order directing PACL, its promoters and directors to wind up all the existing CIS and refund the monies collected by the company to investors as per the terms of offer within a period of three months from the date of the Order.

 

PACL filed an appeal before the Securities Appellate Tribunal (SAT), which was dismissed on 12 August 2015. The SAT directed PACL and its promoters-directors to refund the money within three months. Since the company and its promoters-directors failed to refund the money to the investors as per the directions of SEBI and SAT, the market regulator said it has initiated the recovery proceedings.

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India's retail inflation also rises to touch 5.41%
India's retail inflation also firmed up in November to 5.41% from 5.0% in the month before, as in the case with the wholesale prices, ue largely to food items like pulses, official data showed on Monday.
 
Data on consumer price index (CPI) released by the Central Statistics Office here, showed that the retail inflation for rural areas was much higher at 5.95% as against 4.71% in urban India. For pulses, the combined inflation rate was a whopping 46.08%.
 
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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RBI discusses asset quality with bank heads
Top officials of Reserve Bank of India (RBI) held a meeting of select bankers in public and private sector here on Monday to deliberate asset quality and on improving the banks' balance sheets.
 
In a statement, the RBI said the meeting was chaired by Governor Raghuram G. Rajan. The two deputy governors R.Gandhi and S.S.Mundra and other senior officials of the central bank were also present at the meeting.
 
The statement is silent on the names of the banks or their heads who attended the meeting.
 
During the meeting, RBI and the bankers discussed various issues including the asset quality of banks and the way forward on improving the quality of bank balance sheets.
 
Credit rating agency Fitch Ratings in a report said it expects the banks to show a gradual improvement in the stressed assets ratio, and that it may take some time for the bank's non-performing assets (NPA) to witness a turnaround.
 
The credit rating agency said loan-loss provision cover has deteriorated steadily since financial year 2011-12, due mainly to state-owned banks where the growth of stressed assets has sharply outpaced provisioning for this end.
 
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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