Regulations
SEBI bars Utkarsha Plotters & Multi Agro from collecting money from investors

As per the financial statements of Utkarsha, it had long term liability Rs6.36 crore as on 31 March 2013 as against an inventory of Rs98.54 lakh comprising of agricultural lands

 

Market regulator Securities and Exchange Board of India (SEBI) has barred Utkarsha Plotters & Multi Agro Solutions India Limited and its directors from collecting any fresh money from the investors under its existing scheme. 
 
In its order, SEBI said the company is barred from launching any new schemes or plans or float any new companies to raise fresh moneys. “They are not to dispose of or alienate any of the properties/assets obtained directly or indirectly through money raised by the company. They are not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of the company; to furnish all the information/details sought by SEBI within 15 days from the date of receipt of the order,” the order said.
 
The Company was engaged in fund mobilizing activity from public by floating/ sponsoring/ launching unregistered / unauthorized Collective Investment Scheme (CIS) as defined in section 11AA of the SEBI Act, 1992.
 
As per its marketing pamphlets, Utkarsha was inviting investments into its various plans with an estimated realisable value for developed plots. Some were instalment payment plans and a few were cash down payment plans. 
 
From the sample copy of the receipt issued by Utkarsha to purchasers/ investors, SEBI noted that plot size, estimated realisable value of developed plot, date of handing over the possession of developed plot etc. were mentioned, but there was no identification of the plots earmarked for a particular investor.
 
As per the financial statements of Utkarsha, it had long term liability (booking against sale of land) of Rs1.61 crore as on 31 March 2012 and Rs6.36 crore as on 31 March 2013. It had an inventory of Rs98.54 lakh as on 31 March 2013 comprising of agricultural lands.
 
Utkarsha submitted to SEBI a list of approximately 12,083 investors (as on 31 March 2013) and a list of 274 investors (as on March 31, 2013) who had entered into an agreement for sale with company for transfer of land in investors names, which is approximately 2.3% of the total investor base of Utkarsha. However, Utkarsha has not provided any proof of having registered sale deed or agreement of sale with investors.
 
The activities of Utkarsha violate SEBI’s basic principle: "no person shall sponsor or cause to be sponsored or cause to be carried on a 'collective investment scheme' unless he obtains a certificate of registration from the Board in accordance with the regulations.”
 

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SEBI cautions investors not to invest in 63 entities barred from raising money

SEBI said these 63 companies are illegally collecting mobilising money, from investors by making false promises and assuring unrealistic return and people should stay away from these entities

 

Market regulator Securities and Exchange Board of India (SEBI) has cautioned people from investing into 63 entities that are barred from markets. 
 
In a release, the market regulator said, “It has been observed that certain entities collect, mobilize money under existing or new schemes even after SEBI has directed such entities not to collect any further money and not to launch any new schemes. These companies or entities without obtaining registration are illegally collecting, mobilising money, from investors by making false promises and assuring unrealistic return.”
 
Wherever SEBI has found schemes offered by these entities, to be in the nature of Collective Investment Schemes (CIS), appropriate actions have been taken against the entities and its directors. In this regard, since 1 January 2011, SEBI has passed orders against 63 entities and its directors, for carrying on unregistered CIS. 
 
Here is the list of companies barred by SEBI:
 
 

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Nifty, Sensex headed higher – Weekly closing report

Nifty will remain bullish as long as it does not end the coming week below 8,200

 

The S&P BSE Sensex closed the week that ended on 16th January at 28,122 (up 664 points or 2.42%), while the NSE’s CNX Nifty ended at 8,514 (up 229 points or 2.77%).
From here, Nifty will remain bullish as long as it does not end the coming week below 8,200. Previous week we had mentioned that benchmarks currently directionless.
 
On Monday, the Nifty moved in a haphazard manner, but finally managed closing in the green for the third consecutive session. Nifty closed at 8,323 (up 39 points or 0.46%). Market sentiments were initially affected by the concern that Europe's stimulus plans may not solve the euro region's economic woes.
 
On Tuesday, although Nifty managed to move in the green for major part of the session,  towards the end of the session, it was pulled lower and closed near the day’s low at closed at 8,299 (down 24 points or 0.28%).
 
India's index of industrial production (IIP) increased at five-month high pace of 3.8% in November 2014, recovering from the sharpest pace in three-years at 4.2% recorded in October 2014. The annual rate of inflation based on the combined consumer price indices for urban and rural India rose to 5% in December 2014 from nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months.
 
On Wednesday, the loss on the Nifty continued. Nifty closed at 8,278 (down 22 points or 0.26%). Data showed inflation based on WPI stood at 0.11% in December 2014, as compared to zero in November 2014.
 
The World Bank had said that economic reform measures taken by the Indian government, after coming to power in May last year, may result in its catching up with China’s growth in the year 2016-17.
 
On Thursday, before market opening, a surprise rate cut from Reserve Bank of India (RBI) resulted in the benchmarks recording huge gains. Nifty closed at 8,494 (up 217 points or 2.62%). Data announced after market hours on Thursday showed trade deficit narrowed to 10-month low of $9.4 billion in December 2014, while nearly halving from $16.86 billion in November 2014.
 
After a volatile upmove the Indian benchmarks closed Friday, marginally higher. Nifty closed at 8,514 (up 20 points or 0.23%). 
 
The SBI Composite Index, an indicator for tracking India's manufacturing activity, slipped from 55.4 (high growth) in December 2014 to 51.5 (low growth) in January 2015.
 
Among the Nifty stocks, the top five stocks for the week were Ultratech Cement (12%); Hindustan Unilever (9%); ACC  (9%); IDFC (8%) and Bhel (7%) while the top five losers were Hindalco Industries (-11%); Sesa Sterlite (-7%); Cairn India (-5%); Tata Steel (-4%) and Bharti Airtel (-4%).
 
Of the 1,492 companies on the NSE, 811 companies closed in the green, 642 companies closed in the red while 39 companies closed flat.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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