Regulations
SEBI Employees’ Association expresses concern over CBI raids
The SEBI Employees’ Association (SEA) has expressed concern over recent raids by Central Bureau of Investigation (CBI) on residences of three of its members. "...These selective examinations are extremely demoralising for the entire organisation and will result in creating a fear psychosis," the Association said in a letter sent to SEBI Chairman on 20 September 2016. 
 
Referring to a letter sent by the Association on 14 December 2015, the SEA, in its latest letter to Chairman of Securities and Exchange Board of India (SEBI), says, "While SEA is not aware of the action taken by SEBI in response to the letter, the development of selective searches is shocking and disturbing because this matter is about six-eight years old and involves decision making at the highest level in SEBI. While we understand that the truth must come out and law needs to take its own course, what is shocking is these searches have been carried out only on SEBI officials to the exclusion of approving authorities/higher ups who were associated in decision making. It may be recalled that one of the officials who was searched was given citation by the President of India of best employee award by the Union Ministry of Social Justice and is also visually challenged. 
 
The CBI on Tuesday arrested Jignesh Shah, founder-owner of Financial Technologies of India Ltd and carried out raids at nine locations including his offices and home. According to media reports, the move came after CBI searches at nine locations, including the premises of Shah, FTIL, MCX, senior SEBI officials --Executive Director Muralidhar Rao, DGM Rajesh Dangeti and AGM Vishakha More-- and a former Executive Director of SEBI, JN Gupta, in connection with the case registered two years ago. 
 
In its previous letter too, the SEBI Employees’ Association had expressed their concern at the large number of officials being summoned by various investigation agencies such as CBI, the income-tax department and the economic offences wing to record their views on various decisions taken in the course of their work. The letter stated that 70 out of SEBI’s 652 officials had been summoned—this had doubled in the recent past. 
 
While it is true that all officials should be accountable and open to investigation of dubious actions, organisations such as the Reserve Bank of India (RBI) have evolved a system of dealing with inquiries. Income-tax officers are protected by their statute when it comes to work-related decisions. Both organisations have evolved an informal protocol of sorts, where investigation agencies, such as CBI or the police, will visit their offices for routine inquiries and summon officials only if a ‘preliminary enquiry’ is formally opened. 
 
SEBI has not evolved any such mechanism to support its officials, says the Association. This is partly due to callousness and partly because of the machinations of SEBI’s own top brass. 
 
Ironically, the officers’ protest comes at a time when several of SEBI’s senior-most officers have been ‘examined’ by CBI, not only in the Bank of Rajasthan matter, but also the Saradha chit fund scam and the MCX (Multi Commodity Exchange of India) group. Moreover, allegations of corruption had dogged the organisation right from the early 1990s and, yet, no official has ever been held accountable, despite two massive securities scams, a permanently damaged primary capital market and the exodus of retail investors. 
 
However, SEBI officers are not arguing for immunity: they say that indiscriminate summons, humiliation and questioning by other agencies at the fact-finding stage, is causing widespread demoralisation, especially when the organisation offers no support. All this points to a dysfunctional organisation which needs a complete overhaul of its structure, appointments and human resources policy, in order to make it an effective regulator.
 

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COMMENTS

Mandar Kulkarni

8 months ago

Instead of crying "Victim", these so called low level officials from SEBI should actually offer evidence and testify against the SEBI top brass. Playing the victim card like this only implies that they have something to hide as well.

Mandar Kulkarni

8 months ago

Instead of crying "Victim", these so called low level officials from SEBI should actually offer evidence and testify against the SEBI top brass. Playing the victim card like this only implies that they have something to hide as well.

Vaibhav Dhoka

8 months ago

Due to non accountability there are big chances of malpractices going on in SEBI. Small investors are running away from market.Complaint to SEBI rarely got response in investors favor it went mostly in favor of powerful brokers and other intermediaries.The favors are corrupt practices which are like pyramid in nature i.e chain of officials are involved.So what is wrong in CBI raids.SEA might be afraid of other skeletons falling in raid.

Sagar Gupta

8 months ago

Its seems CBI is near to find something due to which SEBI is getting an ache. If SEBI don't have a towards being accountable and they want the truth to be out then they should support in CBI investigations. Also, If top officials are honest then why feel humiliated by summons or questions, I guess thats the usual process in any investigation. These steps are Demoralising for those who have commit any wrong doing. If people working with SEBI are honest than they should be happy that corrupt practices are being investigated by CBI and SEBI will appear to as more trustworthy if as per SEBI they want transparency and accountability.

AAP MLA Amanatullah Khan arrested in sexual harassment case
Aam Aadmi Party (AAP) legislator Amanatullah Khan was on Wednesday arrested after a sexual harassment complaint by his brother-in-law's wife, police said.
 
"We arrested Khan today (Wednesday). We had called him for questioning after his brother-in-law's wife filed a complaint," a senior police officer told IANS.
 
After his arrest, Khan, who represents Okhla constituency in south Delhi, took to Twitter and wrote: "Came here at (the) DCP office Sarita Vihar for general discussion. But they arrested me." 
 
Following the complaint by the woman (spouse of his wife's brother), a FIR was lodged against Khan at the Jamia Nagar police station in south Delhi on September 10.
 
The complainant accused Khan of pressurising her to establish physical relations. Khan has denied the allegation, saying he had "no connection with the woman at all".
 
The AAP leader was booked under Sections 354 (assault or criminal force on woman with intent to outrage her modesty), 509 (word, gesture or act intended to insult the modesty of a woman), 506 (criminal intimidation), 498-A (relative of husband of a woman subjecting her to cruelty) and criminal conspiracy, police said.
 
Khan had gone to the Jamia Nagar police station on Sunday to surrender, but police refused to arrest him.
 
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

SRINIVAS SHENOY

8 months ago

What do you think?... Write your comments. It is difficult to guage whether it is a genuine case of serial harassment or just a political vendetta from the information provided in the article.

Railways to raise extra capital expenditure: Prabhu
Railway Minister Suresh Prabhu said on Wednesday that amalgamating the railway budget with general budget will help the Indian Railways to raise extra capital expenditure.
 
According to Prabhu, the amalgamation will not impact the functional autonomy or the distinct identity of the railways.
 
"Rail budget was earlier presented by Railway Minister in India, the practice was only followed in India," Prabhu said.
 
"Keeping in mind the importance of the railways, the Cabinet Committee of Economic Affairs (CCEA) today (Wednesday) decided to merge the general budget and the rail budget together." 
 
The minister endorsed the move as a historic step which will help meet global benchmarks and best practices.
 
"The merger would also facilitate an integrated and seamless approach towards transportation strategy in the country," the minister elaborated.
 
Prabhu maintained that the distinct identity of railways will remain intact. 
 
On the financial implication of the move, the minister stated that it will help railways raise extra capital expenditure which will allow it to enhance connectivity in the country and boost economic growth.
 
Besides, the railways would also not need to pay dividends on the allocated capital expenditure amount.
 
The move will be implemented from the coming year will see an end to a 92-year old tradition started in 1924 of presenting a separate budget for the Indian Railways.
 
"From the coming year, the railway and the general budget will be amalgamated. There will be only one budget," Finance Minister Arun Jaitley said here after a Cabinet meeting.
 
The decision to merge the rail and the general budgets was mooted by Railway Minister Suresh Prabhu and endorsed by NITI Aayog member Bibek Debroy.
 
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.

User

COMMENTS

SRINIVAS SHENOY

8 months ago

What do you think?... Write your comments. we expected a lot from the honourable minister Suresh Prabhu and most of my expectations of conveniences, improvement in passenger services, facilities, reasonable pricing is being met.

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