Citizens' Issues
SEBI issues public notice on fraudulent calls in its name

Market regulator Securities & Exchange Board of India has issued a public notice asking investors not to accept the recommendations of any person claiming to sell financial products on its behalf

Recently, a few media outlets have reported that certain individuals are using the Securities and Exchange Board of India’s (SEBI) name, by claiming to be a SEBI official, to sell financial products to prospective investors. SEBI, in its notice, said, “In this regard, the attention of the public is drawn to the fact that SEBI neither offers any investment advice or recommends any investment products/schemes nor seeks any personal information of investors for this purpose.”
 

The notice advised that prospective investors ignore such advice from persons purporting to be SEBI officials. The notice said, “If any prospective investor is contacted by any person purporting to be a SEBI official and offering such investment advice or seeking such information, individuals may not entertain such calls and deny him/her such access and verify the details of such purported official from SEBI website.”

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Government to divest 10% stake in EIL; aims to raise Rs800 crore

“We expect to get around Rs800 crore at current prices,” finance minister P Chidambaram told reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA), which approved the disinvestment in EIL

New Delhi: The government has decided to offload its 10% stake in consultancy major Engineers India (EIL) through a public offer, which may fetch it around Rs800 crore this fiscal, reports PTI.

 

“We expect to get around Rs800 crore at current prices,” finance minister P Chidambaram told reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA), which approved the disinvestment in EIL.

 

The disinvestment will take place through Further Public Offering (FPO), he said.

 

Mr Chidambaram expressed the hope that disinvestment of the leading engineering consultancy firm would happen this fiscal.

 

After the disinvestment, the government’s shareholding in the company would come down to 70.40%. The paid up equity capital of the company, as on 31 March 2012 was Rs168.47 crore.

 

The government holds 80.40% stake in EIL, a ‘Miniratna’ firm. In 2010, it had divested 10% stake through an FPO in EIL.

 

To a query, Mr Chidambaram said, “The OFS (Offer for Sale) mechanism is not available in this case”, as the company is already compliant with market regulator SEBI’s public holding norms. Besides, it is not in top 100 companies in terms of market capitalisation.

 

The government used the OFS route, popularly known as auction method, to divest its stake in NMDC and Hindustan Copper this fiscal. SEBI introduced OFS to help companies achieve minimum public holding norms.

 

The government has proposed to raise Rs30,000 crore by way of disinvestment in 2012-13 and so far it has been able to realise just over Rs6,900 crore. Disinvestment of Oil India and NTPC is lined up for January and February.

 

EIL is leading provider of design, engineering and project management and consultancy services firm for the hydrocarbon sector.

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HSBC lowers India’s FY13 growth forecast to 5.2%

HSBC said the fiscal and current account deficits have turned ‘uglier’. The recent reform push, if sustained, should help lift growth and ‘beautify’ the twin deficits, but it will take some time

New Delhi: HSBC has cut India's growth forecast for this fiscal to 5.2% from 5.7%, citing insufficient progress on structural reforms and slow implementation of infrastructure investment projects, reports PTI.

 

HSBC has lowered India's growth forecast for this fiscal to 5.2% from 5.7% projected earlier, and for financial year 2013-14 to 6.2% from 6.9%.

 

HSBC said the fiscal and current account deficits have turned ‘uglier’, but the recent reform push, if sustained, should help lift growth and "beautify" the twin deficits, but it will take some time.

 

“We think the reform process will take time and it will likely be another three years before growth returns to 8% on a sustained basis,” Qu Hongbin MD and co-head Asian Economics Research at HSBC said in a research note.

 

Growth is expected to recover from 5.2% the current fiscal to 6.2% in 2013-14 and further to 7.5% in 2014-15.

 

Meanwhile, rating agency Fitch warned this week of a downgrade in India's sovereign rating in the next 12-24 months citing slowing GDP growth and weak public finances.

 

In April and June last year, another rating agency S&P, had warned of further downgrades, which would put India into a junk status from the current lowest investment grade rating of BBB-.

 

HSBC, however, lauded the government’s reforms push and said: “All in all, policy in India is moving in the right direction and the reforms will likely continue to inch forward, although much still needs to done and some of the bills may not passed in the near term.”

 

“However, it is important to be realistic about how long this will take. These types of policies need time to kick in,” the report added.

 

HSBC said India is likely to see a gradual recovery in growth as reforms process gathers pace and implementation of infrastructure projects pick up, which in turn would help alleviate supply side constraints and slowly revive the investment cycle.

 

Moreover, a gradual stabilisation of global economic conditions during 2013 would also help support the moderate recovery, HSBC said.

 

In the first half of FY13, the GDP clipped at a poor 5.4%, and the government expects to close the fiscal year under 5.7%.

 

Over the medium term it is crucial for the government to continue the consolidation efforts at both the central and state government level, to achieve fiscal sustainability, which would eventually help to bring growth back to the levels seen a few years ago.

 

Earlier in September last year, HSBC had cut India’s growth forecast for 2012-13 to 5.7% from 6.2% projected, citing lack of 'reform traction' in the country and weak global economic backdrop.

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