Regulations
SEBI bars Mascon IT for trades with Ketan Parekh related entities

SEBI found that MITL sold shares of Mascon Global to various entities associated with Ketan Parekh and certain overseas corporate bodies to create artificial volumes

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has barred Mascon Information Technologies Ltd (MITL) from the securities market for a period of two years for alleged fraudulent trading by way of offloading shares through off market transfers to Ketan Parekh related entities, reports PTI.
 
MITL offloaded a large number of shares to entities related to Ketan Parekh, the main accused in the stock market scam in early 2000, during December 2000 to March 2001 period.
 
In its order dated 27th November, SEBI said MITL by indulging in non-genuine transactions has "thus aided and abetted the Ketan Parekh related entities who, by their transaction in the scrip after receiving the shares from the noticee (MITL), created a false and misleading appearance of trading of shares of Mascon".
 
SEBI has restrained MITL from accessing the securities market or being associated with the securities market in any manner for a period of two years from the date of the order.
 
The regulator's probe had found that MITL sold shares of Mascon Global Ltd to various entities associated with Ketan Parekh and certain Overseas Corporate Bodies (OCBs). These transactions created artificial volumes in scrip of Mascon Global, whose promoter entity is MITL.
 
These huge volume in shares were later on used by Ketan Parekh related entities to indulge in manipulation of price and volume of Mascon Global.
 
The entities connected to Ketan Parekh were Panther Investrade, Panther Fincap and Management Services, Classic Credit, Saimangal Invest Trade and Luminant Investments.
 
In addition, MITL had offloaded shares to certain OCBs such as Kensington Investments, European Investments Wakefield Holdings and Brentfield Holdings.
 

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SBI to open 24-hrs locker cum gold loans branch in Vizag

SBI is opening a dedicated 'Locker Shoppe cum Gold Loans' branch in Visakhapatnam that would remain open for 24 hours for locker operations and gold loans

 
Visakhapatnam: State Bank of India (SBI) is opening a dedicated 'Locker Shoppe cum Gold Loans' branch in Visakhapatnam having round-the-clock operations, reports PTI quoting a top official.
 
"The proposed branch would remain open for 24 hours for locker operations and gold loans which would be sanctioned up to 8 pm every day," said SBI General Manager (Andhra Circle) Gopal Krishan Kansal on the sidelines of a function.
 
He was speaking to reporters after inaugurating a new SBI branch at Asilmetta in the city.
 
About the bank products, Kansal said the "SBI was offering protected home loans where the dependants of the borrowers need not pay outstanding instalments in case of sudden demise of the borrower".
 
Kansal said SBI has brought down its base rate and is currently offering home loans at 10%. "SBI is offering 'personal accidental insurance' cover of Rs4 lakh at a premium of Rs100 per annum for all its savings bank account-holders through SBI General Insurance.
 
He said SBI would be opening around 100 more branches in Andhra Pradesh by the end of financial year and seven among them will be opened in Visakhapatnam.
 

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Banks told to initiate penal action against wilful defaulters

The Finance Ministry has asked banks and financial institutions to initiate penal measures, like barring wilful defaulters from accessing new loans for five years and also filing complaint against the auditors

 
New Delhi: Worried over rising bad loans, the Union government has asked state-owned banks to crack the whip on wilful defaulters and initiate penal proceedings against them, reports PTI.
 
The issue of initiating penal action figured in meetings of the bankers with Finance Minister P Chidambaram.
 
"It is advised that banks and financial institutions should initiate penal measures against wilful defaulters," said a Finance Ministry note prepared for the meetings of Chidambaram with heads of the banks from the public sector.
 
Besides, the PSU bank chiefs were also advised to expedite steps to deal with wilful loan defaulters.
 
The gross gross NPAs or bad loans of all public sector banks taken together has increased to 4.01% in the second quarter of the fiscal from 3.06% in the year ago period.
 
The note said penal measures could be "debarring entrepreneurs and promoters of defaulting companies from institutional finance for floating new ventures for a five year period".
 
In addition, the PSBs have been asked not to grant additional facilities to wilful defaulters.
 
Further, PSU banks and financial institutions have been asked to file complaint against the auditors of the borrowers with the Institute of Chartered Accountants of India (ICAI), if it is found that the auditors were "negligent or deficient" in conducting audit.
 
The government has also asked banks to analyse the reasons for fresh slippages in their NPAs and devise a strategy for minimising bad loans.
 
As per RBI guidelines, banks and financial institutions should ensure limits at individual borrower level as well as industry and sector wise to avoid credit concentration and achieve a diversified portfolio.
 

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