Regulations
SEBI bars Networth Marketing from collecting any more money from investors

Networth Marketing Limited was mobilising funds from investors under its schemes for sale and purchase of real estate (plots in sq. metres) without being registered with SEBI

 

SEBI passed an Order directing Networth Marketing Limited (NML), and its directors viz., Anis Mohamad Kazi, Bhaskar Bhao Vasage, Mahendra Mahadeo Bhuvad, Nuruddin Shaikh, Bhalerao Yashwant Misal and Partha Ghosh  not to collect any fresh money from investors under its existing scheme and not to launch any new schemes or plans or float any new companies to raise fresh money. They are also directed to immediately submit the full inventory of the assets owned by NML obtained through money raised by NML.

NML was mobilising funds from investors under its schemes for sale and purchase of real estate (plots in sq. metres) without being registered with SEBI and has hence violated the provisions of the SEBI Act and SEBI (Collective Investment Schemes) Regulations, 1999.
SEBI had received references/ complaints alleging that NML mobilise monies from the public with promise of a high rate of return. SEBI started an inquiry and wrote to NML formally seeking information.
 
Based on the investigation, SEBI found that it was a collective investment scheme and not any real estate activity. The SEBI member has justified it with the following paragraph in the SEBI Order: “It is noted that SEBI vide letter dated 22 July 2014 sought details of investors on whose name land has been registered with documentary proof. NML vide letter dated 5 August 2014 replied that no land has been registered in the name of the investors as they are having the option of registering the land at the end of term if they find it worth. However, investors also have the option of third party sale or NML buy back at agreed value. NML has launched schemes ranging from 3 years to 21 years, but till date no piece of land has been registered in the name of investors, which suggests that the allotment of land is nothing but a farce as there is no intention of NML to transfer any land in the name of applicant/ investors. Therefore, I am of the view that NML is engaged in the mobilisation of funds from public under its various plans, which is in the nature of 'collective investment scheme' as defined under Section 11AA of the SEBI Act.”
 
Hence, SEBI passed a strict order and applied the following restrictions on the company and its directors:
 
(a) not to collect any fresh money from investors under its existing scheme;
 
(b) not to launch any new schemes or plans or float any new companies to raise fresh moneys;
 
(c) to immediately submit the full inventory of the assets obtained through money raised by NML;
 
(d) not to dispose of or alienate any of the properties/assets obtained directly or indirectly through money raised by NML;
 
(e) not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of NML;
 
(f) to furnish all the information/details sought by SEBI within 15 days from the date of receipt of this order.
 
 

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SEBI cancels certificate of registration of PineBridge Mutual Fund

PineBridge Mutual Fund has transferred its schemes to Kotak Mahindra Mutual Fund

 

Securities and Exchange Board of India (SEBI) has cancelled the certificate of registration of PineBridge Mutual Fund on 27 March 2015, and has withdrawn the approval granted to PineBridge Investments Asset Management Company (India) Private Limited, to act as the Asset Management Company to the Mutual Fund.
 
This is pursuant to the transfer of schemes of PineBridge Mutual Fund to Kotak Mahindra Mutual Fund and the cancellation is at the request of PineBridge Mutual Fund.
 
Consequently, PineBridge Mutual Fund, PineBridge Investments Trustee Company (India) Private Limited and PineBridge Investments Asset Management Company (India) Private Limited cannot carry out any activity as a Mutual Fund, Trustee Company and Asset Management Company respectively.
 

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Nifty, Sensex may rally next week – Weekly closing report

The rally will most likely be a weak one

 

The S&P BSE Sensex closed the week that ended on 27th March at 27,459 (down 802 points or 2.84%), while the NSE’s CNX Nifty closed at 8,341 (down 230 points or 2.68%). Previous week, we had mentioned that if Nifty remains weak, the decline may halt at around 8,300. The low was 8,269. 
 
The Indian stock market was weak for the entire week. After several failed attempts to move up, Nifty closed Monday, lower for the fourth consecutive session. Nifty closed at 8,551 (down 20 points or 0.23%). The highlight of the day was SEBI allowing debt-to-equity conversion by banks for distressed companies, subject to certain clauses of the SEBI’s Issue of Capital and Disclosure Requirements (ICDR) regulations and takeover norms of SEBI, which are to be relaxed.
 
After the indecisive move on Monday, next day Nifty closed in the red. Nifty closed Tuesday at 8,543 (down 8 points or 0.09%).  The Asian Development Bank (ADB), in a report said that it anticipates India's economic growth to accelerate to 7.8% in the fiscal year ending 31 March 2016, while a gross domestic product (GDP) growth of 6.3% in both 2015 and 2016 for Asia.
 
On Wednesday, ahead of March futures and options (F&O) expiry, the 50-share Nifty moved listlessly, but closed lower. The benchmark closed at 8,531 (down 12 points or 0.14%).  Standard & Poor's (S&P) Ratings Services in its special report titled "India Credit Spotlight" said that the country’s reform drive and economic momentum could give plenty of growth opportunities to top corporates. It also said that sectors like utilities & infrastructure, metals & mining, oil & gas and telecom sectors still have high debt levels.
 
On Thursday, the weakness on the US indices adversely affected market sentiments in India further, pulling Nifty sharply lower. For the seventh consecutive session, the 50-stock index closed in the red at 8,342 (down 189 points or 2.21%). In a move to improve utilisation of gas-based power generation capacity in India, Cabinet Committee on Economic Affairs (CCEA) has approved a mechanism, which requires sacrifices to be made collectively by all stakeholders, including the Central and State Governments, by way of exemptions from certain applicable taxes and levies on the incremental RLNG being imported for the purpose.
 
Meanwhile, finance Minister Arun Jaitley said that he hopes to pass the Constitution Amendment Bill for the introduction of Goods and Services Tax (GST) in second half of the Budget session, which begins on 20 April 2015. The US and India are planning to launch negotiations to sign a high-quality bilateral investment treaty to create an enabling business environment in India.
 
On Friday, Nifty opened in the green and continued to move in a range. However, by the end of the morning session, it gave up all the intra-day gains and moved in the red. This was followed by the benchmark making an effort to revive, which ended with it closing flat. Nifty closed at 8,341 (down 0.75 points or 0.01%).
 
Among the news of the day was that the price of domestic natural gas prices would be slashed by 9% to $4.56 per unit from 1st April to reflect the softening in international prices, benefiting users in the power and fertiliser sectors.
 

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