Regulations
SEBI exempts shareholder from complying with open offer rules

Naiker had sought exemption from SEBI regarding acquisition of 5.62 lakh shares representing 45% stake from existing promoters of Hemakuta Industrial Investment, which have not been trades since 2002

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has exempted Kannan Krishnan Naiker, an individual shareholder, from complying with certain regulatory procedures while making an open offer to acquire an additional 45% stake in Hemakuta Industrial Investment, reports PTI.
 
The exemption for Naiker has been given on the basis that his proposal is 'reasonable' and would provide an exit opportunity for the company's existing shareholders.
 
According to a SEBI order dated 8th October, shares of Hemakuta Industrial Investment listed on the BSE have not been traded since 2002 and there are only 245 public shareholders in the entity.
 
"In my view, therefore, the revised proposal of the applicant is reasonable and in the facts and circumstances of the case the proposed acquisition merits relaxation from strict compliance of procedures specified under regulations 13, 14, 15, 16 and 18 of the Takeover Regulations with regard to public announcement and filing / dispatch, etc. of letter of offer," SEBI whole time member Rajeev Kumar Agarwal said.
 
As per norms, an entity acquiring 15% or more shares in a listed company has to make an open offer to shareholders so as they have an option of exiting.
 
However, the exemption would be subject to various conditions that have to be fulfilled by Naiker.
 
SEBI said that Naiker had proposed to provide exit opportunity to all the public shareholders of the company by making an individual offer and had sought exemption only from the strict compliance of regulations to save costs.
 
"The revised proposal would be in the interest of public shareholders and he (Naiker) does not intend to deprive them of any exit opportunity," SEBI said.
 
Naiker had sought exemption from the regulator regarding acquisition of 5.62 lakh shares representing 45% stake from the existing promoters of Hemakuta Industrial Investment.
 
The acquisition would increase the shareholding of Naiker from 24.4% to 69.4%.
 

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Centralised KYC registry can happen after UCIC issuance: RBI

Banks have also been advised by the government to issue unique customer identification code to individual customers for facilitating the formation of a centralised KYC registry

 
Mumbai: Setting up of a centralised know your customer (KYC) registry for the entire financial sector will be possible only after implementation of the unique customer identification code (UCIC), reports PTI quoting Reserve Bank of India (RBI) Executive Director G Padmanabhan.
 
"Once the UCIC is implemented across banks and financial institutions (FIs), it would be feasible to move towards a centralised KYC registry, which will eliminate duplication of efforts and refine the KYC/AML (anti-money laundering)/CFT(combating of financial terrorism) verifications across the financial system," he said addressing a banking event.
 
Earlier, the government had formed a working group to suggest ways to introduce unique identifiers for customers across different banks and financial institutions to set up a centralised KYC registry.
 
Banks have also been advised by the government to issue UCIC to individual customers for facilitating the formation of a centralised KYC registry.
 
Markets regulator SEBI is also advocating a one-time KYC requirement across the financial services sector.
 
The RBI official further said the Aadhaar number will complement the efforts in this direction as it has the potential as an authentication tool in financial transactions.
 

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Black money: Swiss bank accounts of 'City Limousine' owner frozen

Two Swiss accounts of Sayed Mohammed Masood and his business firms, holding $1.25 million, have been attached under the Prevention of Money Laundering Act. Masood is the chairman of City Limousine, a ponzi scheme that cheated thousands of investors across the country

 
Mumbai: In the first instance of an Indian agency getting access to Swiss bank accounts in its black money probe, the Enforcement Directorate (ED) has frozen about Rs6 crore of stashed funds of a Mumbai-based businessman in an alleged money laundering case, reports PTI.
 
The agency, which approached Swiss authorities some time back in connection with the probe, received a shot in the arm when the banking and enforcement authorities there agreed that the money stashed in the accounts was prima facie "proceeds of crime" and it was important for India to get access and control of these accounts.
 
The case pertains to an alleged contravention of money laundering laws by Sayed Mohammed Masood, Chairman of 'City Limousine', whom the agency is probing for floating illegal ponzi (fraud investment plans) schemes by promising extraordinary returns which were not honoured.
 
"Two Swiss accounts in the name of Masood and his business firms, holding $1.25 million, have been attached under the Prevention of Money Laundering Act," investigators of the case said.
 
The ED attachment ensures that these properties cannot be used by the accused and he cannot take any benefits from these assets, and such an order can be challenged by the accused at the adjudicating authority of the PMLA.
 
The Mumbai unit of the agency, has said in its request to Swiss authorities, that it is probing "the City group and its Chairman Sayed Mohamed Masood for money laundering".
 
"By floating ponzi schemes offering astronomically high returns, M/s City Limousines (India) Ltd, M/s City Realcom Ltd, its Chairman and other directors of the companies have cheated thousands of investors across the country of funds to the tune of hundreds of crores," it said.
 
The Enforcement Directorate enforces the PMLA in the country and is the lead agency to probe black money cases, apart from the Income Tax department. 
 
The ED further stated that the "investigations have uncovered huge money laundering in India and abroad.
 
"During the course of investigations, ED has issued 14 attachment orders attaching movable and immovable properties in India with a market value of over Rs130 crore in the names of City group of companies, Sayed Mohamed Masood, Mrs Chand Masood Sayed (his wife), Jabeen Masood Sayed (daughter) and Jibran Masood Sayed (son) and other directors," it said.
 
The adjudicating authority has confirmed that all the attachment orders and the agency is in the process of taking over these properties, the agency said.
 
India has been undertaking various measures to get banking and other investments details of those individuals who have illegally stashed funds abroad.
 

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