SEBI issues FATF money-laundering warning for 10 countries

The SEBI warning follows a global caution notice from the Financial Action Task Force (FATF), the global oversight and policy-framing body for rules to combat money laundering and terror funding risks to international financial markets

New Delhi: After cautioning Indian markets about possible money laundering and terror-funding risks from Iran and North Korea, market regulator Securities and Exchange Board of India (SEBI) has issued a warning for funds from eight more countries, including Turkey and Ethiopia, reports PTI.

A similar warning could be issued soon by the Reserve Bank of India (RBI) to banks and financial institutions seeking caution in dealings with entities and funds related to the eight nations, which also include Bolivia, Cuba, Kenya, Myanmar, Sri Lanka and Syria.

The SEBI warning follows a global caution notice from the Financial Action Task Force (FATF), the global oversight and policy-framing body for rules to combat money laundering and terror funding risks to international financial markets.

The FATF periodically issues such public notices to various foreign governments, which subsequently forward the same to their respective financial regulators.

FATF has previously also issued such warnings for risks attached with Iran and North Korea and the subsequent caution notices have been issued by SEBI and the RBI.

In the latest warning dated 24th June, the FATF has again cautioned against Iran and North Korea, seeking “counter-measures to protect international financial system from the ongoing and substantial money laundering and terrorist financing risk emanating” from these countries.

At the same time, FATF also listed out Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria and Turkey as countries with strategic deficiencies in their rules to combat money laundering and terror funding.

FATF said these eight countries “have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies”.

After the Indian government forwarded the FATF warning to SEBI, the regulator asked the stock exchanges to take note of the same through a letter dated 12th July.

The stock exchanges, in turn, asked the market entities today to take note of the FATF warning and ensure compliance.


Share prices struggling to break out: Tuesday Closing Report

Nifty may test 5,670 and decline again

The domestic market, which opened flat this morning, snapped a two-day losing streak to settle in the green today, supported by institutional buying. Global debt issues did not deter investors from pumping in funds into Indian stocks.

The market opened with marginal gains as investors resorted to bargain-hunting, finding stocks cheaper after two days of decline. The Nifty opened at 5,570, three points up from its previous close, and the Sensex took a 14-points step up at 18,521.

But the market soon pared its gains and dropped into negative territory in the late morning session, on a sell-off in auto and realty stocks. The indices slipped to the day’s lows, the Nifty down to 5,557 and the Sensex back to 18,482.

The indices fluctuated, moving in and out of the red. But buying support in consumer durables, IT and metals subsequently took the market to a higher trajectory. The market climbed to the day’s high in the post-noon session as the Nifty touched 5,628, up 71 points from the day’s low, and the Sensex hit 18,690, up 208 points. The market closed off the day’s high, with the Sensex gaining 147 points at 18,654 and the Nifty at 5,614, up 47 points from its previous close.

In yesterday’s closing report we had mentioned that the Nifty may suddenly fall to 5,400, unless it closes above 5,620. Although the market was able to end in the positive, it closed below 5,620. But the day was marked by a higher high, a higher low and a higher close from that on Monday. This is an indication that the market may rally tomorrow, in which case the resistance is 5,670.

The advance-decline ratio on the National Stock Exchange (NSE) was positive 1046:630.

Among the broader indices, the BSE Mid-cap index finished 0.41% higher and the BSE Small-cap index gained 0.82%.

The top performers in the sectoral space were BSE Consumer Durables (up 1.42%), BSE IT (up 1.17%), BSE TECk (up 1.16%), BSE Realty (up 1.12%) and BSE Metal (up 0.90%). The top sectoral losers were BSE Auto (down 0.43%), BSE Power (down 0.26%) and BSE Capital Goods (down 0.13%).

The main gainers on the Sensex were DLF (up 2.09%), Sterlite Industries (up 1.77%), Tata Power (up 1.62%), State Bank of India (up 1.59%) and Infosys (up 1.45%). The stocks that ended at the bottom of the index were Tata Motors (down 3.16%), Hero Honda (down 1.22%), Maruti Suzuki (down 0.79%), HDFC Bank (down 0.70%) and Hindustan Unilever (down 0.42%).

The top gainers on the Nifty were Kotak Bank (up 2.61%), DLF (up 2.30%), Sterlite (up 2.02%), Sun Pharma (up 1.86%) and Cairn India (up 1.70%). The laggards were led by Tata Motors (down 1.60%), Hero Honda (down 1.20%), Maruti Suzuki (down 1.13%), HDFC Bank (down 0.79%) and HUL (down 0.71%).

Markets in Asia closed mostly higher, as debt issues across the world weighed on sentiment. Global stocks declined as US president Barack Obama struggled to get lawmakers to agree to limit the fiscal deficit, ahead of the deadline to raise the nation’s $14.3 trillion debt limit.

Shares of European banks fell below the book value of their tangible assets for the first time in two years yesterday, on concerns that the region’s banks may have to raise as much as 80 billion euros ($113 billion) of additional capital, after stress tests failed to allay investor concerns over a Greek default.

The Shanghai Composite declined 0.70%, the Jakarta Composite fell 0.24%, the KLSE Composite was down 0.44%, the Nikkei 225 retraced 0.85%, the Seoul Composite shed 0.01% and the Taiwan Weighted settled 0.16% lower. On the other hand, the Hang Seng gained 0.45% and the Straits Times advanced 0.56%.

Back home, foreign institutional investors were net sellers of stocks worth Rs93.01 crore on Monday, whereas domestic institutional investors were net buyers of shares worth Rs163.62 crore.

Action Construction Equipment (ACE) is in advanced talks to acquire a Chinese company. The cost of this acquisition is estimated at Rs40 crore-Rs50 crore. ACE is hopeful of finalising the deal in the next one-two months. The ACE stock closed 1.89% higher at Rs45.90 on the NSE today.

Sun Pharmaceutical Industries today said it has received the US health regulator’s nod to market Alfuzosin Hydrochloride tablets, used in the treatment of prostatic hyperplasia, in the American market.

The company’s subsidiary has received approval from the USFDA to market Alfuzosin Hydrochloride extended release tablets—a generic version of Uroxatral ER—in the strength of 10 mg, the company stated. Alfuzosin Hydrochloride extended release tablets have annual sales of nearly $250 million in the US. Sun Pharma ended at Rs510 on the NSE, up 1.86% from its previous close.

Godrej Properties, the real estate development arm of the Godrej group, today said it has entered into a joint venture with Godrej & Boyce to develop residential projects in Hyderabad and Thane.

The company has formed two limited liability partnerships (LLPs) with Godrej & Boyce—Godrej Buildcorp LLP (GB LLP) for the Hyderabad project, and Godrej Property Developers LLP (GPD LLP) to develop a project in Thane, the company said. Godrej Properties rose 1.52% to Rs803.30 on the NSE today.


RPP Infra Projects ventures into Indonesian power project

The scope of work includes finance, designing, procurement, construction, commission, operation & maintenance of a coal fired steam power

RPP Infra Projects Ltd has passed the pre-qualification norms for the "Mamuju IPP Power Project" in Indonesia through its consortium with Truba Manunggal Power & Energy Ventures Ltd.

The consortium is expected to develop two projects of net capacity 2x25 MW each. These projects namely Mamuju Coal Fired Steam Power Plant IPP & Kendari Fired Steam Powered Plant IPP are connected to 150 kV Sub Station.

The scope of work includes finance, designing, procurement, construction, commission, operation & maintenance of a coal fired steam power plant using BOOT scheme which shall then be transferred to PLN.

P Arulsundaram-CMD, RPP Infra Projects said, "We have passed through tough competition to win this project. We are also hopeful that this is the beginning of many more such projects."

Truba Manunggal Tbl (TM) was incorporate in January 2001 and was listed on October 2006. The company's shares are currently traded on the Indonesia Stock Exchange.

On Tuesday, RPP Infra ended 1.25% up at Rs81.05 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.79% to 18,653.87


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