SEBI bars 16 from markets on charges of synchronised trading

Separately, the market regulator has also barred 14 people and four entities from accessing the markets in the JVG Finance case

Market regulator Securities and Exchange Board of India (SEBI) has barred 16 people from dealing in the securities market with immediate effect till further directions on charges of synchronised trading. Separately, SEBI also barred 18 people from accessing the securities markets in the JVG Finance Ltd case.

A group of 16 individuals, including Hemlata Ramesh Hankare, Rashmi R Ghandhi, Anil Rajmal Shah, Alpesh R Shah, Jitendra Mannalal Jain, Renu Madhusudhan Paliwal, Hasmukh Valchand Jain and Naresh V Rajawat, was prima facie involved in synchronised or circular trading, SEBI said.

The companies in which the group artificially created trading volumes during March 2009 to September 2009 are Allcargo Global Logistics, Asian Star Co, KSL & Industries, Mavens Biotech, Panoramic Universal, Rasi Electrodes, Sat Industries and Ushdev International.

"The group had indulged in creation of artificial volume by trading among themselves. Most of the trades among the group were synchronised," the regulator said.

SEBI said that the National Securities Depository Ltd and the Central Depository Services (India) Ltd have been directed to freeze the beneficial owner accounts of these 16 people.

It also directed the National Stock Exchange and the Bombay Stock Exchange to square off any existing open positions of these individuals in the futures and options segment.

In the matter of JVG Finance, while barring 14 people and four entities from accessing the securities markets, the market regulator in its order issued on 22nd February, has disposed the proceedings against the company and Jagdish Narain and Pramod Kapur without giving any directions.

The group barred in the JVG Finance case include VK Sharma, Tripat Singh Bhan, Biresh Prasad Singh, DP Nayyar, SP Sharma, BB Sharma, MN Badam, A Subba Rao, Rakesh Mishra, Hari Kumar, Rana Das, SK Gupta, Ashok Kumar Kohl and Gopal Gupta as well as Hoffland Finance Ltd, Marisia Financial Services Ltd, VM Investments and Evergrow Financial Services Private Ltd.
 

User

COMMENTS

R Balakrishnan

7 years ago

I fully agree with kishoreghiya. Brokers are the prime movers of such price rigging operations and bring all the parties to one table. SEBI should take away the license of the brokers, if it is serious in its intent to protect investors from manipulation.

kishoreghiya

7 years ago

I am sorry you are not investor friendly in reporting you have no right to edit the sebi information by dropping the names of brokers through whom all these transactions took place.
You should educate investors in telling that these brokers are the persons who are responsible.With stricy kyc norms and monitoring by themselves they are the party to bnefit. pl check the propritory trading by these brokers accounts and you will unearth scam.
Pl wake up it is now only 2% household savings come to capital market and we are all responsible.
Kishore ghiya mob 09825217857

L&T enters ‘turbulent’ mutual fund business without an edge

With its foray into the asset management space, L&T has taken a bold step even as the mutual fund industry is undergoing one of its most challenging transformations ever

When global engineering and construction giant Larsen & Toubro Ltd’s (L&T) financial services arm L&T Finance had acquired the assets of DBS Cholamandalam Mutual Fund in early February of last year, it was at a time when the stock markets were in a freefall. DBS Cholamandalam, along with others, was limping along, unable to sustain business operations.

L&T Finance has now officially launched its mutual fund operations, in an environment that is not exactly the most welcoming for a mutual fund business. Regulatory changes in the last year have left the industry licking its wounds, with distributors getting cold feet over selling mutual funds and retail investors simply shying away from the volatile stock markets.

Responding to Moneylife’s question on how L&T justifies putting money into this business at this juncture, YM Deosthalee, whole-time director and chief financial officer, L&T said, “It is not that we are entering into the mutual fund business. We are in the financial services business and therefore we need to offer services to customers in order to be able to retain the customer. This is very critical. From that perspective, it is important to take care of their investments. That is the philosophy behind acquiring this entity. Yes, there are challenges. But ultimately if the products and services are innovative enough to make their presence felt in the market and deliver returns to the customer, then these challenges can be overcome.”

Asked about L&T’s strategy to attract retail investors, Sanjay Sinha, chief executive officer, L&T Mutual Fund remarked, “We already have an investor base of about 1.1 lakh. We are pleased to tell you that in the exit option, not even 3% of these investors chose to leave. Therefore, we have a lot of confidence that we can expand on this base. Also earlier, we did not have a sizable distribution network. Now, we will be present in about 80 locations together with L&T Finance. We will also be able to connect to a larger number of distributors. Thereby, our ability to attract a larger segment of retail investor population is now stronger.”

L&T plans synergies with its existing financial services businesses to provide a suite of products catering to retail as well as corporate investors. For this, it plans to leverage its existing distribution presence and its customer base across the spectrum of L&T Finance businesses.

However, L&T can easily draw a blank with this strategy, as it lacks the sort of business edge that banks possibly have in marketing and selling mutual funds. Banks derive significant strength from their robust distribution network and are more aggressive when it comes to pushing financial products. As such, mutual funds are products that are sold, not bought.

Although the fund house plans to expand its network and distribution base substantially in the coming months, it will not be an easy task to attract investments. L&T Mutual Fund will mostly rely more on its brand equity and trust to gain a foothold in the industry. It will also take strength from the expertise of Mr Sinha, regarded as a sound fund manager within industry circles.

L&T Finance also plans to launch its general insurance operations soon, subject to regulatory approvals.
 

User

COMMENTS

Ramniklal S Rana

6 years ago

We have applied for Redemtion of Mutual Fund on 7.9.2010. Details are as under

L & T Hedged Equity Folio 225545 / 37

L & T Tax Saver Fund (G) Folio 171132 / 25

So far we have not recd any information about refund cheque.

kindly expedite.

Ramniklal Sunderlal Rana

stockbets

7 years ago

Thanks MK for the info. L&T has the same confidence (arrogance?) that HUL has about selling foods, ITC has about selling garments and Kumar Birla has about telecom or Microsoft has about net search...Management depth and marketing/distribution expertise in one business does not have much relevance in another

MK

7 years ago

The erstwhile Dbs Chola now L&T MF has to pull up its socks in order to revamp its existing sales team, as i hear that the sales team remains the same. Me being a distributor who had distributed DBS Chola Mf products never did get any call from the higher ups for the last one and a half year, so if L&T is to continue with the same sales team then????

stockbets

7 years ago

Mutual fund business is an unnecessary distraction for L&T. It is a thankless job. Assets is not correlated to performance which is correlated to markets. In fact, what has L&T done in a sector, where opportunities for growth was much more solid - software?

Shantanu

7 years ago

I feel a solid brand name lik L&T known for their excellence in every sphere they are in will lend a lot of credibility to the Fund. This will in the long run (if the performance of the schemes are good) will help in raising assets. Distribution challanges remain for L&T as is for any other fund house.

R. Balakrishnan

7 years ago

L&T is smart. Using its brand which enjoys a good retail reputation. Build, operate and sell (wholly or partly). Sooner it finds an equity partner, who will make the finance business free of cost to L&T the better.
It also shows that without ownership, professional management can take a company from shipping to bottle caps to road building to money lending...

RBI’s directive may help clients earn more from savings accounts

With the central bank of the country mandating all banks to compute interest on savings accounts on a daily basis, account-holders will reap better rewards from their deposits

The credit side of your passbook will soon show much healthier figures, instead of the measly amount your savings deposits earned until now. The Reserve Bank of India’s (RBI) recent directive to banks to start calculating interest rates on such accounts on a daily basis from 1st April will bring cheer to millions of savings account-holders in the country.

Under the new system, banks will now calculate interest on your savings account on daily balances, replacing the current archaic system where banks compute interest on the lowest available balance held between the tenth and the last day of the month.

The current system is no less than a rip-off for the common man, as banks have become used to getting low-cost funds at the cost of hapless savings account holders. This is how it used to work: Suppose you held Rs20,000 in your savings account at the end of the 10th day of a month, subsequently withdrawing Rs15,000 at the end of the month, you would only earn interest on the lowest balance in your account for the entire month—in this case, Rs5,000. As such, your account will be credited with Rs175.

However, under the new system, even if you have withdrawn Rs15,000 at the end of the month, you will get interest not only on your account balance on the last day of the month (Rs5,000), but also on the daily balance held for the first 29 days of the month. In this case, the interest will add up to Rs682.50.

For banks, though, this will obviously raise the cost of funding. Banks with higher proportion of CASA (current account and savings account) deposits in their funding sources will get hurt the most. Margins will get squeezed unless the RBI decides to act on the bankers’ call to reduce interest rates on savings accounts. This is highly unlikely, however, as it would defeat the very purpose of RBI’s depositor-friendly stance in this matter.

Speaking about the impact of this move on banks, SSN Murthy, senior vice president, Indian Banks’ Association (IBA) said, “The interest payment will now be high for banks. We are asking for some reduction in interest rate. We are trying to either continue the old procedure or are asking for a reduction to 2.5%.” He also added that it would likely result in a rise in liquidity for banks as people will put money into savings accounts to get the benefit of more interest payout.

Although the central bank had proposed this move two years back, banks had asked it to postpone the same citing unfeasibility due to lack of computerisation. Now that majority of the banks are well-equipped with computers, RBI has finally asked banks to implement the decision from 1st April. Customers are unlikely to be fooled this April Fool’s day.

However, banks may still try to circumvent the new regulations by attempting to reduce the interest rate chargeable on daily basis through some subterfuge. In such a scenario, depositors may still find themselves short-changed, unless the RBI takes a hard stand on the matter.
 

User

COMMENTS

santosh

6 years ago

enquire

santosh patel

7 years ago

its still not clear what amount we will get and what is the rate of interest on daily basis so will u please clear it

vinayak

7 years ago

sd

R Balakrishnan

7 years ago

My understanding is that Banks are going ahead. The present average cost of savings works out to between 2.4 and 2.8 percent per annum. Banks have approached the RBI to reduce the rates from 3.5 to 2.5 percent. Most likely that will happen.
World over, savings account do not pay interest. If you have a check book, then no. Otherwise yes. But we are different and like this only!

Shoeb kadri

7 years ago

I liked the article and story coverage a lot,Would like more elaborated report from Moneylife,I think this will get implemented siting "Aam Admi" budget this year,Banks would be forced to change their calculation method,It's a good move.

SK

7 years ago

Banks never asked RBI or others when they increase the service charges, though the value of the service is marginal not comensurate with the charges they levy. Private and Foreign banks are the worst offenders with charging a heavy (dis)service charge when the minimum balance (Not a small amount that too) is not maintained.

K Narayanan

7 years ago

What RBI would do if they don't pay.There is direction to the banks to issue pass book to SB account holders.While old generation pvt sector and public sector banks give passbook the new generation pvt sector banks care a damn about the same.Try getting the pass book from them and you deserve to be listed in the guinness record books.As per latest reports the banking ombudsman recd 69117 complaints during 2008-09.Is it possible to attend to such a large complaints.They are mainly relating to unsolicited credit card,loan over phone,unsolicited insurance policy issuance and debit of the premium,excess billing .No responsible person to answer,It is all in public domain.What RBI has done.Nothing.Peanlise the MD of the bank for unsolicited card and insurance policy issuance,Stop issuing license to such bank.Or nationlise the banks.The service may be poor but at least the loot will not be there.In our country if you allow free run to new generation banks sooner or later they will loot the customers and they know how to purchase the RBI officials,govt agencies and politicians,Don't be enamoured by the excellent service.It is not a symbol of efficency but the eventual looting of your money

shreepad

7 years ago

Is the saving a/c int rate will come down?

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)