Regulations
SEBI lets off Emkay for just Rs11 lakh

Without admission or denial of guilt on the part of Emkay  to the  findings  of fact or conclusions  of  law,  Emkay  has remitted  a  sum  of  Rs11,00,800 favouring SEBI  towards the terms of settlement in the matter

 

Securities and Exchange Board of India (SEBI) initiated adjudication  proceedings against Emkay  Global  Financial  Services, to  inquire  into  and  adjudge  under  Section 15HB of the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) the violation of Clause A(2)  of  Code of Conduct for Stock Brokers as specified under Regulation 7 of  SEBI Stock Brokers and Sub Brokers Regulations, 1992   alleged to have been committed by Emkay with respect to  its  dealing  in  the  scrip  of  Aarey  Drugs  and  Pharmaceuticals Ltd. ('ADPL').
 
In this regard a Show Cause Notice no. A&E/EAD3/DRK-AKS/20949/2013 dated 19.08.2013 (‘SCN’) was served on Emkay which alleged  that  it  had  executed synchronised trades in the scrip of ADPL on behalf of its clients Nita B Bhavsar,  Jipal  Shah,  Dhavalkumar  Soni  and  C  Shah Champaklal wherein Emkay had acted as both stock broker and counter party  stock  broker. Some of the trades were executed from the same terminal also.  Emkay’s alleged failure to exercise due skill and care made it liable for a monetary penalty under Section 15 HB of the SEBI Act.
 
Pending adjudication proceedings, Emkay submitted a consent application in December 2013 to SEBI for settlement of the case. Later, Emkay representatives submitted before SEBI the revised settlement terms with an amount of Rs11,00,800 towards settlement charges. The settlement terms were placed before the High Powered Advisory Committee on Consent, which looked into the matter and recommended the case for settlement.
 
Without admission or denial of guilt on the part of Emkay  to the  findings  of  fact  or conclusions  of  law,  Emkay  has remitted  a  sum  of  Rs11,00,800 favouring  SEBI towards the terms of settlement in the matter.
 
SEBI said that the settlement order is passed on 5 June, 2015 and shall come into force with immediate effect.
 

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Leveraging India's human capital
There are four essential parts to the realization of the demographic dividend that India possesses at present. These are skilling, entrepreneurship, proactive approach to youth affairs and employment generation
 
Leveraging human capital is a fascinating topic for developing societies. It is because social and economic progress is critically dependent on it. Most observers point out that India possesses a distinct demographic dividend. The dividend will only fructify into tangible gains if appropriate policies and structural mechanisms are put in place.
 
At present approximately a million young people are entering the workforce each month. The challenge is to help them contribute to the economic development of the country. These youth entering the workforce over the next ten years have the potential to make or mar the prospects of India's growth story. 
 
There are four essential parts to the realization of the demographic dividend that India possesses at present. These are skilling, entrepreneurship, proactive approach to youth affairs and employment generation. 
 
Skilling is crucial, as there exists a gap between what students are being taught and what the industry requirements are from professionals. The skill gap is responsible for a large section being unemployed and unemployable. The issue of employability can only be solved when the curricula takes the industry needs into account. 
 
Vocational education, as well as skilling for students who drop out of school early is one of the best ways of ensuring a means of livelihood and movement out of poverty. The ministry of skill development and entrepreneurship was created by bringing together all the skill development initiatives of the government under a single roof. The central ministries/departments have done a good job so far in the area and have trained around 58 lakh people in 2014-15. 
 
Related to skilling is entrepreneurship. The fact of the matter is that providing employment to a million people/month is simply an unachievable target for the government working on its own. Therefore, an imperative for employment generation and labour market development in India is entrepreneurship. The government realizes this and thus has created the above-mentioned ministry. So far India has not fared very well with respect to entrepreneurship. The formal creation of firms in India is low and cumulatively smaller than much smaller places like Hong Kong if one observes World Bank data from 2004-11. 
 
There are many social, cultural and economic reasons for this. Risk aversion in society, very high costs of failure and lack of access to funding are some of the prominent reasons for the India's low scores on most international indices of entrepreneurship. An access to venture funding and changing the mindset of people in society will go a long way in promoting entrepreneurship and helping energize the youth for national development. 
 
Recent years have also witnessed the phenomenon of brain drain where talent from India is leaving the country as people look for greener pastures abroad. The trend can only be abated or reversed if the incentive structures within the country are changed and proper means of engagement are built with the diaspora abroad. 
 
Successive governments have failed to do so and this is where youth diplomacy can play an active role in engaging with not only our diaspora but with youth from across the world. India is a young nation and can grow immensely by exchange of ideas at a youth to youth level. Energizing and channelizing the collective energy of the Indian youth will only strengthen the cause of nation building and development. 
 
Finally, there is the issue of employment generation. That can be achieved if only there are appropriate incentives for enterprises across sectors to flourish. Added to this is the fact that further liberalization of foreign direct investment (FDI) norms and industrial policy could enable greater capital inflows that can aid in industrial and economic development. The present regime has moved in the right direction in this regard but much bolder steps are required especially in opening up more sectors to foreign direct investment. 
 
The recently released quarterly survey of employment October-December 2014 shows that 1.17 lakh jobs were created in the eight key sectors for which the survey was conducted. This was lower than the 1.58 Lakhs created in the previous quarter. Also, if one compares the data from July to December 2014, one observes that there were 2.75 lakh jobs that were created compared to 1.26 lakh jobs a year ago. That's an increase of 118 percent rise for the six-month period year-on-year. The surge was lead by the IT and BPO sector that added 89,000 jobs in the October-December 2014 quarter. It was followed by the textiles and apparel segment that added 79,000 jobs. 
 
One of the major planks on which the present government won the 2014 general elections was job creation. On this count, the government seems to be doing well. However, one must realize that this is a limited survey of just eight sectors. Also, the growth in employment seems to be concentrated in the IT and textiles & apparel sector. Broad- basing the survey to other sectors as well as broad-basing of jobs created will go a long way in ensuring that trends are observed and appropriate policy actions taken. The chief statistician recently has alluded to better data collection on the employment front. Considering the importance of this in policy analysis and action on this is indeed is a welcome step for a more informed debate on the Indian economy. 
 
Over the next few years, the government will have to focus continuously on these critical areas for growth to be broad-based and inclusive. At present, the trends from the limited data seem positive but these areas require better data and scrutiny over the next decade.

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COMMENTS

B. Yerram Raju

1 year ago

Any small enterprise with even Rs.5lakh investment creates 4 jobs - 2 of entrepreneur's own family or friends/partner or two others. The more they come up the more employment. But these jobs will be at the end of skill sets or unskilled. They however serve as training hubs. Such small enterprises when tagged to a big enterprise where it would be uneconomical to do the jobs done by the small, could add value to both and the small becomes sustainable.

Nifty, Sensex, Bank Nifty remain weak – Monday closing report
Nifty has to close above 8,100 to put in a short rally
 
We had mentioned last week that NSE’s CNX Nifty continues to remain weak and a close above 8,200 is needed for the down move to end temporarily. The 50-stock index opened Monday marginally higher and immediately hit the day’s high, but was pulled lower. The benchmark moved down gradually and closed in the red for the sixth consecutive session. This is the third instance for the year 2015, when the 50-stock Nifty has continued to post losses on six successive trading sessions. The previous two were the seven days of losses ending on 9 February 2015 and eight days of losses ending 27 March 2015.
 
The S&P BSE Sensex opened at 26,814 while Nifty opened at 8,124. After immediately hitting a high at 26,827 and 8,131, the benchmarks went down. At the end of the session, the Sensex hit its low at 26,473 and closed at 26,523 (down 245 points or 0.92%). Nifty too hit its low at 8,031 and closed at 8,044 (down 71 points or 0.87%). Bank Nifty moved in the red for the entire session. It opened at 17,543 and moved in the range of 17,358 and 17,561.  It closed at 17,433 (down 117 points and 0.66%). NSE recorded a volume of 67.05 crore shares. India VIX rose 4.41% to close at 18.8850.
 
The Reserve Bank of India (RBI) is scheduled to announce current account deficit (CAD) data for Q4 March 2015 later in the day. India's CAD narrowed to $8.2 billion or 1.6% GDP in Q3 December 2014 from $10.1 billion or 2% of GDP in Q2 September 2014.
 
Oil cartel Organization of the Petroleum Exporting Countries (OPEC) had decided to keep its collective output level unchanged at 30 million barrels a day. This was the second time in six months that it decided to take no action amid a global glut of crude and weak oil prices.
 
The India Meteorological Department (IMD) had said that the conditions are favourable for further advance of southwest monsoon into some more parts of central Arabian Sea & Karnataka, remaining parts of Tamilnadu, some parts of Rayalaseema and Coastal Andhra Pradesh and some more parts of central Bay of Bengal over the next two days.
 
Coming back to stock markets, Bhushan Steel rose 18.51% to close at Rs71.70. It was the top gainer in ‘A’ group on the BSE. It was in the news, as the RBI had announced a scheme for long term structuring of loans in line with cash flows. The lenders’ forum has agreed to extend the loans of the company for the tenure of 25 years under the scheme. However, the banks have to approve the scheme.
 
Sun TV fell 21.73% to close at Rs 278.90 on the BSE. It hit its 52-week low today. It was the top loser in ‘A’ group on the BSE. The 33 television channels that Sun TV Network had applied to Information and Broadcasting Ministry (I&B) Ministry for renewing its broadcasting licence for 10 years, which required security clearance from the Home Ministry. According to reports, the home ministry's rejection of the security clearance to Sun TV channels has been influenced by pending criminal cases against Kalanithi Maran and his brother and former Union minister Dayanidhi Maran. Kalanithi Maran is the promoter of Sun TV Network. The rejection of the security clearance may lead to cancellation of the channels' broadcasting licence.
 
Tata Power rose 1.13% to close at Rs71.40 on the BSE. The stock was the top gainer in the Sensex 30 pack. Vedanta fell 3.12% to close at Rs177.05 on the BSE. It was the top loser in the pack. 
 
On Friday, the US indices had mixed closing.
 
The Labour Department said the US economy generated 280,000 new jobs in May. The Labour Department also revised the jobs figures from March and April. March was revised up to 119,000 from 85,000, while April was revised a touch lower to 221,000 from 223,000. The unemployment rate edged up to 5.5%, but mainly because more Americans entered the labour force in search of work.
 
The International Monetary Fund (IMF)'s deputy managing director warned on Monday that there is considerable risk for negative spillover from the US Federal Reserve's pending interest rate hike.
 
Asian indices showed mixed performance. Shanghai Composite (2.17%) was the top gainer while Jakarta Composite (1.68%) was the top loser.
 
China's exports fell 2.5% in May from a year earlier in dollar terms, after a drop of 6.4% in April, data from the General Administration of Customs showed today. Imports in May fell 17.6% from a year earlier, compared with a 16.2% drop in April. China's trade surplus has widened in May to $59.49 billion from $34.1 billion in April.
 
Japan's economy grew faster than initially estimated in the first quarter. Gross domestic product, the broadest measure of the nation's economic activity, expanded at an annualised pace of 3.9% in January-March, according to data released today.
 
European indices showed mixed performance while US Futures were trading marginally in the negative. The head of the European Union reportedly rebuked Greek Prime Minister Alexis Tsipras in unusually sharp terms on Sunday and warned that time was running out for Athens to reach a debt deal with its lenders to avert default. Greece had opted to bundle its June loan payments to the International Monetary Fund and make them at the end of the month.
 
Germany's Industrial production, adjusted for inflation and seasonal swings, increased 0.9% in April from the previous month, data from the federal statistics office Destatis showed today.

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