Regulations
SEBI bars Vasundhara Realcon, directors from raising money from investors
SEBI asked Vasundhara Realcon Ltd and its directors not to dispose any of the properties or assets acquired by the company without prior permission from the regulator as well as not to divert the funds raised from investors
 
Market regulator Securities and Exchange Board of India (SEBI) has asked Vasundhara Realcon Ltd and its directors to refrain from raising money from investors through issuance of securities.
 
SEBI said its probe found that Vasundhara Realcon had garnered over Rs2.23 crore by issuing non-convertible redeemable debentures (NCDs) to 468 people during 2010-11 to 2013-14. It further said that the actual number of allottees and the amount mobilised could be much higher.
 
The market regulator had received a complaint alleging that Vasundhara Realcon was collecting money through various schemes and investment plans.
 
SEBI said, Vasundhara Realcon and its directors Sandip Parui, Ashis Sarkar, Sahab Uddin Khan and Gauranga Roy are prohibited from mobilising funds from investors as well as from accessing securities market.
 
Chinmoy Ghatak and Priyabrata Roy, the debenture trustee of Vasundhara Realcon Debenture Trust are also prohibited from continuing with its assignment as debenture trustee in respect of the offer of NCDs of Vasundhara Realcon and also from taking up any new assignment or involvement in any new issue of debentures. 
 
The capital market watchdog also asked the entities not to dispose any of the properties or assets acquired by the company without prior permission from the regulator as well as not to divert the funds raised from the public.

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'Way forward is to get things done without legislation'
The recent change to the FDI policy regime by the Indian government is a welcome move. In spite of the huge setback to the political strategy of the NDA-led government at the center after the Bihar debacle, the government seems keen on reviving the investment cycle. That is the sure shot way to regain the growth momentum.
 
The most recent reforms are seen to impact as high as 15 distinct sectors of the economy. This will will certainly take India forward in its quest to achieve economic development for its citizens and global competitiveness among its peers. 
 
The slew of reforms pertain to different aspects of the Foreign Direct Investment regime. The core issue of these reforms is to further "ease, rationalise and simplify the process of foreign investments" in the country and to put a greater number of FDI proposals on the automatic instead of the government route that investors are never keen on taking. 
 
Thus, the impetus is clearly on easing the hassles investors and businesses face in investing in India's growth story. These changes can be seen in light of the government's push for bettering India's performance on the Ease of Doing Business Ranking of the World Bank where this country is placed a dismal 130 in spite of improving 12 places (4 places on the new methodology) in comparison to the previous year. 
 
Some of the reform measures include increasing the monetary limit for Foreign Investment Promotion Board (FIPB) from Rs.3000 ($455 million) to Rs.5000 crore. Proposals above Rs.5000 crore would go to the Cabinet Committee on Economic Affairs. The proposals also contain measures to correct the long-pending issues like limited liability partnerships as well as NRI-owned companies who seem keen to invest in India. Some proposals also seek to enhance the sectoral investment caps so that foreign investors don't have to face fragmented ownership issues and get motivated to deploy their resources and technology with full force.
 
Other sectors where the reforms have been initiated include establishment and transfer of ownership and control of Indian companies, agriculture and agricultural husbandry, plantation, mining and mineral separation of titanium bearing minerals and ores. Also, changes have been made in sectors like defense, broadcasting, civil aviation, construction development sectors, cash and carry wholesale trading/wholesale trading (including changes to time of sourcing from medium and small sector) enterprises. A boost has also been provided to single brand retail trading and duty-free shops that might see a proliferation of better equipment manufacturing in India. Also, some changes have been proposed in the banking in private sector and India's ailing manufacturing sector.
 
These changes are seen to be harbingers of the reform promise that had seen the coming to power of the Narendra Modi government in May 2014. The government's recent push in FDI is seen to a be a positive development both in the policy circles as well as in the business and investor community - both of which have expressed their satisfaction with the move. 
 
FDI constitutes the highest inflows to developing countries - even higher than the official development assistance (ODA) and the much talked about remittance flows to developing countries. The government's push to reform the FDI policy regime is likely to be seen in the light of the liberalization and calibration of the economy further to bring in capital and technology necessary for economic growth and development. 
 
Over the next year or so, the reform agenda, if pursued properly, can have a multiplier effect on the economy with investors, businessmen and most importantly consumers benefiting from better goods and services. The recent changes to the FDI regime only showcase that much can be achieved even without legislation. The way forward is to get things done without legislation that can benefit the people of the country.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Narendra Doshi

2 years ago

YES,this road has been forced upon & MUST be used extensively.

SEBI impounds financial assets of 8 entities including Blue Chip Corp

SEBI also directed banks and depositories not to make any debits in the bank accounts, demat accounts, held jointly or severally, by Blue Chip Corp except after confirmation from the concerned stock exchange

 

Market regulator Securities and Exchange Board of India (SEBI) impounded the financial assets of Blue Chip Corporation, Nitin Rajaram Narke, Pravin B Darawade, Bhavana Chadha, Milestone Investment, Nitin Narke Investment, Blue Cheap Investment and Blue Chip Investment and directed them not to dispose off or alienate any of their assets.
 
According to the SEBI Order, banks and depositories are directed that no debits shall be made in their bank accounts/demat accounts, held jointly or severally, by these eight entities except after confirmation from the concerned stock exchange.
 
The SEBI order adds, the eight entities are directed to provide a full inventory of all their assets whether movable or immovable, or any interest or investment or charge in any of such assets, including details of their all their bank and demat accounts immediately but not later than 7 working days from the date of receipt of these directions.
 
The eight entities are restrained from accessing the securities market, according to the SEBI Order. They are also directed not to mobilise funds from investors in any manner. They are also directed to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites, etc. and any unregistered activity in the securities market.
 
SEBI had investigated the entities for their unregistered activity with respect to investors in the stock market.

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