SEBI imposed the fine of Rs4 lakh on DSE Financial Services for not monitoring and restricting physical access to its servers to oursiders
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a fine of Rs4 lakh on DSE Financial Services Ltd (DSFSL), a unit of Delhi Stock Exchange, for violating rules of functioning of its office and belongings, reports PTI.
During the relevant period, DSFSL was registered with SEBI as member broker of the National Stock Exchange of India Ltd.
“In exercise of the powers conferred upon the adjudicating officer under section 15 I of the SEBI Act...a penalty of Rs4 lakh has been imposed under sections 15F and 15 HB of the SEBI,” the market regulator said in a notification.
“Therefore, considering all the facts and circumstances of the case, ... a suitable penalty (Rs4,00,000) needs to be imposed on the noticee for the aforesaid violations or non-compliances,” it added.
The regulator had conducted an inspection of DSFSL during 8 February 2007 to 23 February 2007 with regard to its activities as a stock broker and also as a depository participant.
“It was also observed during the inspections that DSFSL did not monitor the physical access to its server room. As a result, unauthorised personnel could freely enter the area of DPM terminals which could prove to be a safety hazard,” it said.
SEBI further said that the objectives of such inspections are to point out the lacunae or deficiencies in the functioning of the subsidiaries of the stock exchanges.
“...so they can rectify the same and it do not come in the way of fair functioning of the securities market or hamper the interests of the investors and other market participants,” SEBI said.
The sales of equity funds were up compared to the last few months, but FY2011-12 ended as a bad year for equity funds
The sales of equity funds were the highest since August 2011, reaching Rs4,925 crore, according to Association of Mutual Funds in India (AMFI) data that is released every month. This will not be sustained since around 12% of the total sales were contributed by ELSSs (Equity Linked Savings Schemes), the sales of which usually peak in March due to the tax incentive that investors get when they invest in ELSSs. SBI Tax Advantage Fund, an ELSS scheme, which was launched in this period saw an inflow of Rs26 crore. Redemptions were on a higher side as well, but, much lower than last month. If we remove the ELSS component, the net outflow from equity funds amounted to Rs196 crore.
The financial year 2011-12 saw a net inflow of just Rs122 crore, however, this seems to be much better than FY2010-11 which saw an exodus of Rs13,139 crore. But if we compare the sales, in FY2011-12 sales declined by a almost 25% to Rs50,560 crore from Rs66,592 crore in FY2010-11. In FY2011-12 there were just seven new fund offers (NFOs) launched compared to 23 NFOs in the previous year, this has been the lowest for any financial year since 2000-01. A recent report by Computer Age Management Services (CAMS), on mutual funds trends covering the last 11 months time period between April 2011 and February 2012, showed that retail equity assets under management (AUM) declined by almost 11%. What is more astounding is that according to the report, 57% of equity folios were redeemed at a loss during the 11-month period. And around 97% of these redemptions were made by retail investors. This just shows the lack of awareness of the investors and most of them redeemed their investments in panic. The report also showed a decline in interest in systematic investment plan (SIP) (Read: SIPs are not selling).
Moneylife has been highlighting the declining interest of retail investors in equity markets. The drop in equity mutual fund flows is another indicator. One of the reasons is that lumpsum investment has frequently failed to work because market gains come in spurts and for many long stretches equities do not perform. Investors get tired of waiting. This is why they have been redeeming as the Sensex rose in Jan-March period. The index is still below its previous peak of 21,207 reached in January 2008. The other reason is that the regulator has been constantly tweaking the norms for the mutual fund industry, which has clearly done more harm than good, a point highlighted by us for two years which both the mainstream media and the fund industry are now beginning to grudgingly echo, as well. Distributors have found fund-selling unviable and have been moving out of the business. In the CAMS report, it was mentioned that in December 2011, over 20,000 distributors have decided not to renew their registration. The only option for intermediaries to earn some income has been to make investors churn their portfolios but this leads to a loss for investors, a probable reason why retail investors redeem their investments at a loss.
Sea level readings now indicate that the threat has diminished or is over for most areas and therefore the tsunami watch issued by this center is now cancelled, PTWC said
The Pacific Tsunami Warning Centre (PTWC), in its latest bulletin has withdrawn its Tsunami warning issued after the massive earthquake off western coast of North Sumatra with a magnitude of 8.7 on Richter scale in the afternoon (IST).
"A significant Tsunami was generated by this earthquake. However...sea level readings now indicate that the threat has diminished or is over for most areas. Therefore the tsunami watch issued by this center is now cancelled," PTWC said in the release. Even Indonesia's disaster mitigation agency has said there is no detection of low tide that would indicate tsunami in Aceh.
The PTWC issued a tsunami warning across 28 countries, including Indonesia, India, Sri Lanka and Bangladesh following a a massive earthquake off western coast of North Sumatra with a magnitude of 8.7 on Richter scale.
For any affected areas - when no major waves have occurred for at least two hours after the estimated arrival time or damaging waves have not occurred for at least two hours then local authorities can assume the threat is passed. Danger to boats and coastal structures can continue for several hours due to rapid currents. As local conditions can cause a wide variation in Tsunami wave action the all clear determination must be made by local authorities, the PTWC said.
People from eastern coast of India as well as from Bengaluru, Guwahati and Mumbai reported tremors. According to initial reports, people from Chennai felt tremors thrice within five minutes.
National Disaster Management Authority also said that there is no likelihood of tsunami being formed anywhere in the Indian Ocean. "No waves noticed so far in Andaman and Nicobar Islands and Tsunami is so far virtually being ruled out, NDMA vice president Sasidhra Reddy told PTI.
Bruce Presgrave of the US Geological Survey (USGS), told the BBC that the nature of this quake made it less likely a tsunami would be generated, as the earth had moved horizontally, rather than vertically, therefore had not displaced large volumes of water. "We can't rule out the possibility, but horizontal motion is less likely to produce a destructive tsunami," he said.
In a bulletin, the Centre issued an Indian Ocean wide Tsunami watch alert effective for Indonesia, India, Sri Lanka, Australia, Myanmar, Thailand, Maldives, United Kingdom, Malaysia, Mauritius, Reunion, Seychelles, Pakistan, Somalia, Oman, Madagascar, Iran, UAE, Yemen, Comores, Bangladesh, Tanzania, Mozambique, Kenya, Crozet Islands, Kerguelen Islands, South Africa and Singapore.
There was an alert issued for Mumbai as well. However, there is a low tide on Mumbai coast at the same that as the projected time when the Tsunami waves would reach. This also means that there is no reason for panic on the west coast of India.
A giant 9.1-magnitude quake off Indonesia on 26 December 2004, triggered a tsunami in the Indian Ocean that killed 230,000 people, nearly three quarter of them in Aceh. Indonesia straddles a series of fault lines that makes the vast island nation prone to volcanic and seismic activity.
Here are the preliminary parameters of the earthquake…
ORIGIN TIME - 0839Z 11 APR 2012
COORDINATES - 2.0 NORTH 92.5 EAST
LOCATION - OFF W COAST OF NORTHERN SUMATRA
MAGNITUDE - 8.7
According to the bulletin, here is the possible Tsunami wave arrival time at forecast points. A Tsunami is a series of waves and the time between successive waves can be five minutes to one hour.