SEBI bars 34 entities from markets for 3-5 years

SEBI has barred 34 entities, including Sunil Mehta, from markets for synchronised trading, creation of artificial volumes and price manipulation in scrips of eight companies

Market regulator Securities and Exchange Board of India (SEBI) has barred 34 entities from the securities market for three to five years in the matter of synchronised trading by connected persons. The case relates with synchronised trading, creation of artificial volumes and price manipulation in scrips of eight companies, Allcargo Global Logistics Ltd, Asian Star Company, KSL & Industries, Mavens Biotech, Panoramic Universal, Rasi Electrodes, Sat Industries and Ushdev International.


In a release, SEBI said, "The period of debarment already undergone by the noticees in terms of the earlier Orders dated 20 February 2010 and 27 May 2011 passed in the matter shall be taken into account while computing the said periods of debarment ordered."


Synchronised or circular trading refers to a practice where the seller and buyer may have an understanding between them on trading of specific shares.


Sunil Mehta has been barred from accessing the capital market and is prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly, for a period of seven years.


The market regulator has barred 13 entities, including Anjana Mehta, Jitendra Jain, Hemlata Hankare, Ajay Roongta, Bharat Jain, Suresh Hanswal, Praveen Gate, Manish Mathur, Bhavesh Kothari, Rakesh Jain, Bhavesh Jain, Naresh Rajawat and Hitesh Jain from accessing the capital market and are further  prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly, for a period of five years.


Those who have been barred from the markets for three years include, Usha Mehta, Seema Mathur, Devendra Rai, Renu Paliwal, Rashmi Gandhi, Ramesh Gandhi, Hasmukh Jain, Pawanben Jain, Reeta Rajawat, Kunal Kothari, Sweta Kothari, Shobha Kothari, Neela Khicha, Kamlesh Jain, Vinay Kothari, Pradeep Kothari, Sitanshu Nanawati, Shaikh Jainuddin and Meena Rajawat.


According to SEBI release, its directions issued against Alpesh Rajmal Shah and Anil Rajmal Shah shall not continue.


Last year in September, SEBI has imposed a penalty of Rs1 lakh on Sunil Mehta for indulging in synchronised trading activities in shares of 12 companies including Ushdev International and Lotus Eye care Hospitals. The alleged synchronised or circular trading in these companies happened from 1 March 2009 to 15 December 2009 on the BSE.


Two of the biggest and most successful hedge fund managers hugely bearish on India

Ray Dalio and Jeff Gundlach—two of the most prominent hedge fund managers believe that the Indian economy and the stock market is on the precipice of a big fall

Two of the world's biggest and most successful hedge fund managers are very pessimistic on India and have cautioned investors that investing in India will be fraught with big risks. Jeff Gundlach, who manages a hedge fund DoubleLine Capital LP, believes that India’s currency is weak because of reliance on foreign capital and that he would rather not own Indian stocks. He also said that India’s stock markets look “very scary” because of high oil prices and rupee depreciation. He is short India amongst emerging market countries. Ray Dalio, another hedge fund who manages $150 billion in assets at Bridgewater Associates was quoted as saying that India should “prepare for the worst” since it has been one too vulnerable to foreign capital inflows which may now avoid emerging markets.

In his webcast titled “What If”, Gundlach said, “emerging markets currencies with the largest capital dependence on foreign capital flows to fund currency account gaps have been particularly hit.” As you can see one of his slides from his presentation, India’s short-term debt coverage ratio doesn’t look good. In fact, it has cratered below the average threshold limit. This essentially means that India has fewer reserves to meet short term debt obligations.


Dalio was quoted as saying, “We are going to have an emerging market crisis” particularly due to adverse balance of payments. He also said that emerging markets like India is not an attractive place to invest because of the unfavourable pricing and flows. He said that emerging markets have to confront the balance of payments problems and had little doubt about the tough times ahead for emerging markets. He pointed out that India’s stock market had been benefiting a lot, thanks to the quantitative easing, and unusual monetary policies adopted by the United States Federal Reserve and other developed countries like Japan. More dollars came to India as a result of this, boosting India’s stock markets. However, lack of economic reforms and political will, particularly in the infrastructure sector, meant that India solely depended on foreign capital to plug both current and fiscal gaps. This is a recipe for disaster. When foreign capital dries or is withdrawn (much of it due to a better economic recovery and US Federal Reserve decision to ‘taper’ monetary easing), India is left with little and, as a consequence, the rupee got clobbered.

The Economist believes that India has been complacent and failed to take advantage of incoming foreign capital to stimulate economic reforms. It said in a piece on 24 August, “India’s troubles are caused partly by global forces beyond its control. But they are also the consequence of a deadly complacency that has led the country to miss a great opportunity. To prevent a slide into crisis, the government needs first to stop making things worse”.

One would expect that a weaker rupee would help plug trade gaps as exports become more profitable. But it is not so because of economic mismanagement which has resulted in poor productivity and higher inflation which has eroded domestic competitiveness and resulted in higher input costs for some industries. As a result, the manufacturing sector which stands to benefit from a dearer rupee is not able to export competitively, although the information technology sector is expected to benefit. “India’s structural problems also make it harder for local exporters to cash in on the weak rupee,” says Bruce Einhorn and Kartik Goyal of Businessweek., a financial blog, believes that India is headed for a full blown stagflation. It said, “At this stage, rising prices, sharply higher interest rates, and a loss of confidence within the business community will bring the economic growth to a standstill, potentially pushing the country into a full blown stagflation.”

India now pin their hopes on Raghuram Rajan, the smart economist from University of Chicago who had predicted the US economic crisis in 2005, to fix the economy. However, this will be a tall order. Gavin Davies, a writer for Financial Times blog, says, “It will not be easy for Rajan to restore credibility to monetary policy, but that is an essential task, without which all else will fail. Rajan believes that, with appropriate structural reforms, India can one day return to the heady 8%-10% growth rates of the 2000s. Maybe, but most of these reforms seem politically beyond reach at present. International investors should expect a painful period of tighter monetary policy and even slower growth before the crisis is over.”



Vinayak Bhimarao Mudholkar

4 years ago

Economics is not a science like Physics;so I take these forecasts with a load of salt but reforms is an emergency. Will the next Govt. be able to that is a million dollar question....otherwise investors potential multibagger stocks would turn into MULTI-BEGGAR STOCKS!

Ramesh Poapt

4 years ago

Just today,RRajan told that we have enough reserve for many years!But the game will be more thrilling then T20 match where winning will be miracle and 'tie'will delay the final outcome!


4 years ago

Forecasts like these offer comfort to:
1) Those who missed out on buying at lower levels &
2) Shorts which are trapped.

But, will the markets oblige? - Only time will tell.

Delhi gang-rape case: Sentencing of four convicts on Friday

The Delhi court, after hearing arguments of the prosecution, which sought death penalty for the four, and the defence lawyers, reserved its order on punishment till Friday

A fast-track Court in Delhi, which convicted four persons in the 16th December gang rape-cum-murder case, on Wednesday fixed 13th September for pronouncing the quantum of sentence to be awarded to them.


Additional sessions judge Yogesh Khanna reserved the order on punishment after hearing arguments of the prosecution, which sought death penalty for the four, and the defence lawyers.


The Delhi Police sought death penalty for the four for brutal gang rape and cold-blooded murder of the 23-year-old girl.


Advancing arguments on quantum of sentence, special public prosecutor Dayan Krishnan said the death sentence should be awarded to the four convicts — Mukesh (26), Vinay Sharma (20), Pawan Gupta (19) and Akshay Thakur (28) — as the case falls in the category of "rarest of rare" cases.


The defence lawyers, however, sought a lenient punishment for the convicts, saying life imprisonment in such a case is a rule while death penalty is an exception.


During the arguments, the prosecutor told the court that the convicts do not deserve any mercy, as they killed the helpless girl who kept on pleading for mercy.


"The crime is not only grotesque and diabolic in nature but the barbaric behaviour of the convicts was of the highest kind. Maximum sentence has to be given as the court should see that they have raped and killed a helpless girl, even as she pleaded for her life," he said.


He said people at large are watching this case and if the convicts are awarded a lighter punishment, the public will lose faith in the judicial system.


"This is an extreme case of depravity and sexual assault of a young girl, who could not survive after their gruesome attack and gang rape. The act to damage the girl's intestines intentionally leaves no scope of sympathy," the prosecutor argued.


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