Regulations
SEBI cautions investors against illegal fund raising schemes
While publishing list of 95 companies that are banned from raising money from investors, SEBI said, except GIFT Collective Investment Management Co, no other entity is registered with it under the CIS Regulations
 
Market regulator Securities and Exchange Board of India (SEBI), concerned over a number of illegal money collections schemes floated by companies has cautioned investors and public against dealing with such entities. SEBI also published a list of 95 entities, which included many from West Bengal.
 
In a release, the market regulator said, "...other than 'GIFT Collective Investment Management Company Ltd', no other entity is registered with SEBI under the CIS Regulations. Further, investors are advised to bear the following cautionary checks before investing in a collective investment scheme (CIS)."
 
The list of 95 entities banned by SEBI from raising funds include names like Wisdom Agro Tech India, Raghav Capital & Infrastructure, Adel Landmarks (Era Landmarks), RDPL Infrastructure, Agri Gold Farms & Estates, Saradha Realty India, Rose Valley Real Estate & Constructions and Sai Prasad Properties.
 
Since January 2011, SEBI has passed orders against 95 entities and their respective directors carrying on unregistered CIS. Of these, orders have been passed against 43 entities in the first 10 months of 2015 itself. 
 
Further, investors are advised to bear the cautionary checks like whether the entity is registered with SEBI, and whether the scheme has filed an offer document with the regulator before investing in a CIS. 
 
 "...subscription to CIS units is permitted only though a banking channel, no cash transactions are permitted... No guaranteed or assured returns are permitted (at most, an indicative return may be stated in offer document)," SEBI noted. 
 
SEBI also asked investors to report such unauthorised money pooling activities to the market regulator, state authorities including police "immediately, along with appropriate details/documents". 
 
Here is the list of 95 entities against which SEBI has issued directions…
 
(In case of both interim and final orders in a matter, date of final order is stated above)

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Will the Rules for “City Taxi Scheme” kill Uber, OLA?
The Maharashtra government has drafted a set of rules with a pre-determined mind-set to make it impossible for aggregators like Ola and Uber to operate and to protect black-yellow taxis that inconvenience passengers a lot. Analysis by an Uber/Ola partner 
 
Just imagine you want to go to Lokhandwala at Andheri from Dadar in the evening. Trains are packed hence its out of question. You ask nearby black and yellow (kali-pili in local lingo) taxi driver, “Bhai, Lokhandwala chaloge”. He refuses. Same thing happens with other two-three taxis. You get frustrated. Here in such situation, comes aggregators, who provide air-conditioned cab service on tap. No refusal, prompt pick up and drop at your choice of destination. Just place a request through your mobile phone on their app and get a cab. For your security, you can even share your ride with your dear ones too.
 
But as popularity of these aggregators like OLA and Uber is increasing day-by-day, the black and yellow taxi owners have become restless because they are unable to provide technology-based service and losing out. Hence, they approached the Maharashtra Transport Department to bring all taxi services under one Rule. Based of direction from the state government, the Transport Department has drafted Rules for all Cab Service Providers.
 
What are the objections of kali-pili operators?
 
Kali-Pili taxi operators feel that these newly entrant aggregators are not registered with State Transport Department and are operating illegally. Their second objection is about pricing of ride by these aggregators. These web or app based aggregators charge at Rs10 per km on an average. On the other hand average per km rate of black and yellow taxis is Rs17 per km. Hence passengers prefer private air-conditioned cabs provided by aggregators, which gives a ride at a much cheaper rate. Plus as promotion, these private cab operators offer free ride of Rs200 for referring others. Third objection of black and yellow taxis drivers is about tourist cars being used as local taxi. As per black and yellow taxi operators, tourist Permit is given to promote tourism in the country. But instead of this, such T-Permit cars are used as local taxis. So black and yellow taxis owners or drivers (read unions) have demanded to revoke or cancel tourist permit of cars used by aggregators for allegedly indulging in the illegal business of cab service.
 
What does the new Draft Rules say?
 
The Transport Department has proposed all cab operators to register with them and obtain a license to carry on business as taxi service provider. The Transport Department will issue maximum of 4,000 permits with 2,500 permits in first phase. There are also mandatory provisions like wearing uniform by drivers of aggregators, displaying badge on front of the cab, different colour of cab for different aggregator, GPS and temperature device in every cab. All these features are for safety and security of passengers, the new Rules say.
 
What is not clear in the Draft Rules?
 
The government has not specified or provided a clear definition about aggregators. Whether aggregators’ means cab operators, who owns fleet of cabs or operators who provide cab service in spite of not owning a single cab, is not clear. It is also not clear whether the rule include various carpool apps, which are launched every now and then. Such apps sometimes fix the fare and ask ride takers to pay the ride givers. Many apps even allow private cars for share a ride facility. Also it is not clear, if the Transport Department is considering bringing such apps under new taxi scheme. If so, then the question is how Transport Department will oversee the working of such apps?    
 
Secondly, the Draft Rules, do not specify anything about fare structure. Whether fare structure of all licensees will be decided by Regional Transport Authority or aggregators are free to have their own fare structure is not clear.  
 
How it will affect to those who regularly use cabs from likes of OLA and Uber
 
Today, there are at least 20,000 cabs under OLA and Uber. If the government decide to restrict these cabs from private aggregators to just 2,500 then it will create huge commuter problem in Mumbai. Thanks to these cabs, many people have reduced the use of their own cars. It will also create safety and security concern of women as aggregators like OLA and Uber now do a police verification of drivers. But if the Transport Department decides to restrict the number of cabs, then women who work in office/ corporates till late night will have to wait for long before getting a cab. 
 
How it will affect those who have livelihood on this private taxi service?
 
Private taxi service has created huge employment opportunity for unemployed drivers, who on an average are earning Rs25,000 a month while cab owners can earn up to Rs1 lakh a month. But if the Draft Rules are implemented, it will result in massive unemployment. 
 
What is the way forward?
 
Rather than restricting business of private cab operators by putting stringent rules, the government should consider improving existing black and yellow taxi service through app based and call-center driven technology. Today, aggregator like OLA has also given black and yellow taxis app-based platform for their business.
 
In fact, OLA has given black and yellow taxis, an option to accept passenger or refuse without penalty. Instead of forcing outdated rules on new age taxi drivers or owners, the government should help existing black and yellow taxi drivers and owners to embrace technology and give competition to private taxi service providers and aggregators like OLA and Uber.

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COMMENTS

Location expert

1 year ago

As Always most people only post one side of the story.
The cases of refusal by Ola Uber are plenty and you would find thousands of complaints on the same.
The fact that they are no one to regulate these complaints make the things worse.

Also when an Auto waalah asks for extra in late nights or for Traffic prone areas we call this cheating and WHEN OLA UBER charge Congestion charges(which are anyway not allowed as per fare policy) some Pseudo liberal people call it technology. IT IS PLAIN and simple FLEECING,

Most of the time we play 2-3 times fare ( which makes them costlier than even MERU) also for your kind attention this extra fare is not paid to the driver, it is kept by OLA UBER. WHat did ola uber do in this congestion time the driver was wasting time and wasting his fuel. How does that make them good.

Technology platform's are available for all taxi and there may be a much better and Fair solution available in market but OLA UBER are just buying their way in by such articles and stories, they want to create monopoly(duo-poly).

Also the point that they don't ply CNG cabs as mandated in DElhi and Mumbai. Making the city much more polluted. Imagine 2lakhs vehicles as claimed by ola UBer doing ten trips a day, how much pollution they add to these cities by not being CNG.

Food for thought... Isnt IT.

REPLY

Gupta

In Reply to Location expert 1 year ago

You seem to be a Government bureaucrat who has never had the need to deal with the menace called taxis and autos.... or you are yourself an auto or taxi wallah... or have you been paid to write this barb... I have not met even ONE normal sane minded individual who prefers the taxi or auto over Uber or Ola. People would any day love to pay the "Congestion surcharge" you hate so much to get the auto/taxi wallahs out of business.. Put it to vote and take a bet if less than 95% vote for Uber/Ola v/s taxi/autowallahs. I'm leaving the 5% vote for the auto/taxi wallah and their relatives themselves.

Vikram Dhotre

1 year ago

The people who come up with such set of rules do not have real life experience of hailing a cab ever in their life time. The powers that be enjoy every amenity throughout their life from the public's money. The less sarkar interferes in market dynamics, the better.

REPLY

Anand Rajagopalan

In Reply to Vikram Dhotre 1 year ago

Well said.This problem is not restricted to Maharashtra alone. In TN, auto drivers refuse to ride with meters on and OLA has broken that monopoly and arrogance with their APP based bookings for auto and as usual Auto Unions wants a ban on them

Gupta

1 year ago

Sick! The crab mentality will never die. I never believed the problem of kali pili taxi or autos could ever be solved till someone innovated the aggregator concept. It is plain amazing and revolutionary. But we simply can't see anyone succeeding. So we do what we do best - strike, ban, protest, violence or retrograde regulation.

It is this mentality that will never let the country progress. We love to murder all forms of innovation. The PM talks about innovation and his "youngster" handpicked CM can't think beyond kali pili and cows. I wish we rather had a 90 year old uneducated CM or PM. God help this country.... If only we could spend all this energy used in creating innovative regulation to kill a budding business into something more productive, then the Indian CEOs of Google, Microsoft, Adobe, Pepsi and many others would have been creating Indian brands and loads of Indian employment and wealth. Alas..... Sad..... Sick....

Narendra Doshi

1 year ago

Yourconclusion is tha most appropriate in present times and maybe for all times to come.

Indian companies were involved in $7.7 bn-worth M&A deals
Mergers and acquisitions (M&A) involving Indian companies saw 18 percent growth in value terms at $7.7 billion while the number of deals remained at 233 during the third quarter of 2015, said EY Services Ltd on Tuesday.
 
In statement citing the Transactions Quarterly 2015, the company said the M&A activity involving Indian companies picked up momentum during the quarter ending September 2015 and saw a total of 233 deals -- both inbound and outbound.
 
The M&A activity is expected to remain strong in the coming months, on the back of positive economic outlook, improved investor confidence and favourable capital markets.
 
The cumulative disclosed deal value registered during the third quarter of 2015 was $7.7 billion.
 
"While this represents an 18 percent increase in terms of aggregate disclosed value as compared to $6.5 billion in 3Q14, the deal volume remained at the same levels (232 deals in 3Q14)," the statement said.
 
According to EY Services, the technology sector continued to dominate the M&A sector tables in terms of volume, accounting for 36 deals, as companies remained focussed on acquiring firms specializing in SMAC (social media, mobile, analytics and cloud) capabilities.
 
"Cross-border transactions were a significant driver of the M&A activity. This reflects increased business confidence of global playersin the Indian economy and the domestic companies. The M&A activity on the domestic front, though subdued, is expected to pick up over the next few months as the economy continues to improve." Amit Khandelwal, partner and national director, transaction advisory services, EY was quoted as saying in the statement.
 
Cross-border M&A dominated the country's deal landscape during the quarter with 116 deals with a cumulative disclosed value of $6.6 billion, accounting for 85 percent of the total disclosed deal value.
 
Compared with the previous quarter, the deal volume increased by 27 percent (91 deals in 3Q14) and deal value by 150 percent ($2.6 billion in 3Q14), EY Services said.
 
This surge in deal value can be attributed to three outbound big-ticket transactions ($500 million and above) and two inbound deals totalling to $3.6 billion, compared to only one big-ticket cross-border transaction in 3Q14 that being an inbound deal valued at $610 million.
 
According to EY Services, the quarter under review witnessed 33 outbound deals with a cumulative disclosed deal value of $3.6 billion.
 
The deal volume remained nearly flat for the third quarter as compared to corresponding period last year.
 
However, the value size of the deals for the quarter under review went up by eight percent from $401 million for corresponding period in 2014.
 
Key transactions within the space included ONGC Videsh Limited's agreement to acquire up to 15 percent stake in Russia-based CSJC Vankorneft for $1.3 billion, Lupin Limited's agreement to buy the US-based Gavis Pharmaceuticals LLC and its affiliate Novel Laboratories Inc. for $880 million and Cipla Limited's agreement to acquire the US-based InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. for a joint consideration of $550 million.
 
"Of the top 10 deals of the quarter in terms of value, 50 percent were outbound and drove the significant increase in value to $3.6 billion in 3Q15, compared to $0.3 billion in 1Q15 and $0.5 billion in 2Q15. 
 
"These transactions marked an end to a prolonged absence of big-ticket outbound transactions from the M&A activity in India since 2012," said Khandelwal.
 
On the inbound front, a total of 83 deals were registered with a cumulative disclosed deal value of $2.9 billion, up from 60 deals with a total disclosed deal value of $2.2 billion in 3Q14.
 
Technology, infrastructure and financial services were the most active sectors for inbound investments.
 
According to EY Services, the US companies continued to be the most active counterparts of Indian companies in the cross-border transactions.
 
During the quarter, players from the US were involved as acquirers in 23 inbound deals and as targets in nine outbound transactions.
 
Companies from the UK followed next with 6 inbound and 5 outbound transactions.
 
Domestic M&A activity took a plunge this quarter, both in terms of disclosed deal value and volume. The deal volume decreased to 117 from 141 in 3Q14 and aggregate disclosed deal value decreased to $1.1 billion from $3.9 billion in 3Q14.
 
The largest deal in domestic arena was Birla Corporation's agreement with Lafarge India to acquire its two cement assets for $768 million.
 
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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