Regulations
SEBI Order directs Dynamic Asset Management to refund money
The company was mobilising funds through issue of redeemable preference shares without complying with Companies Act and provisions of the SEBI Regulations
 
Market regulator SEBI (Securities and Exchange Board of India), in an Order, directed Dynamic Asset Management to refund money collected through issue of redeemable preference shares (RPS). SEBI also directed the company to refund the money collected from investors, till date, pending allotment of RPS, with interest at the rate of 15% per annum compounded at half yearly intervals. 
 
According to the SEBI Order, Dynamic Asset Management and its promoters/ directors are also restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market. They are also restrained from issuing prospectus, offer document or advertisement soliciting money from the public and associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. The restrictions shall continue to be in force from the date of the Order till the expiry of 4 years from the date of completion of refunds to investors.
 
The SEBI Order directed the company to issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of the Order coming into effect.
 
The company was engaged in fund mobilising activity through the issue of redeemable   preference shares to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956 read with Companies Act, 2013, according to the SEBI Order.
 
SEBI had earlier passed an interim order on 9 January 2015 in the matter, whereby it directed the company and its promoters/ directors not to collect any more money from investors through the issue of securities.

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COMMENTS

Ramesh Poapt

7 months ago

trustee/promoters/group and amt involved details would have been welcome information.

Non-bailable warrant against Pankaj Bhujbal
Mumbai : A Special Court on Wednesday issued a non-bailable arrest warrant against NCP legislator Pankaj Bhujbal and some others in connection with a money laundering case lodged by the Enforcement Directorate (ED).
 
Prevention of Money Laundering Act Special Court Judge P.R. Bhavke ordered the warrant after taking cognizance of the chargesheet filed by the ED in the case pertaining to the alleged corruption in the construction of the Maharashtra Sadan in New delhi and another case.
 
The judge also extended the judicial custody of former deputy chief minister Chhagan Bhujbal and his nephew former MP and Sameer Bhujbal till May 11.
 
On March 30, the ED had filed an 11,500-plus pages chargesheet naming the Bhujbal trio, their other associates and corporate entities like D.B. Realty, Balwa Group, Neelkamal Realtors and Kakade Infrastructure in the scam worth around Rs.870 crore.
 
The ED has filed two first information reports (FIRs) against the accused under PMLA based on complaints registered by Maharashtra Anti-Corruption Bureau for probing alleged irregularities in the construction of Maharashtra Sadan and a land grab at Kalina in Mumbai.
 
The actions followed a Special Investigation Team directed by the Bombay High Court in December 2014 to probe these cases against the Bhujbals and others.
 
Earlier, the ED had attached properties of the Bhujbals worth Rs.131.86 crore and carried out searches at nine offices and properties.
 
While Sameer Bhujbal was arrested on February 3, his uncle Chhagan Bhujbal was nabbed on March 14 by the ED and remains in custody. Now the warrant has been issued against Pankaj Bhujbal.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Publicise defaulters whose loans written off: MPs' committee
New Delhi : In the wake of the case of defaulting liquor baron Vijay Mallya, parliament's consultative committee attached to the finance ministry on Wednesday suggested a list of all defaulters, whose loans have been written off, be made public and asked for exemplary action against wilful defaulters.
 
These were among the suggestions made at a meeting of the parliamentary committee here with Finance Minister Arun Jaitley and senior officials of the ministry to discuss the non-performing assets, or bad loans, of public sector banks (PSBs), a finance ministry statement said.
 
"Some members suggested that a committee be constituted to finalise recovery process in case of loans given to big corporate houses by various PSBs," it said.
 
Making his opening remarks, Jaitley said there are two categories of defaulters -- those who are unable to pay back due to economic slowdown, as well as those who are wilful defaulters, including loans sanctioned without due diligence by the banks -- and that the government has taken various measures to deal with both these categories, the statement added.
 
Jaitley also noted that the government had taken various measures to revive the stressed sectors -- mainly steel, textiles, power and roads -- besides providing Rs.25,000 crore each in the budgets for the last and current fiscals for recapitalising of banks.
 
In its report on Asia-Pacific sovereigns released on Wednesday, American credit ratings agency Moody's cautioned that a prolonged worsening in asset quality at state-run banks is the main threat to India's sovereign credit profile and suggested the government provide for higher recapitalisation of stressed banks.
 
"The main threat to the sovereign credit profile would be via a significant and prolonged worsening in asset quality at state-owned banks, beyond the recognition of bad loans currently under way, that causes contingent liabilities to crystallise on the government's balance sheet," it said.
 
Meanwhile, a consortium of 13 banks led by the State Bank of India on Monday told the Supreme Court that from the non-disclosure of assets by beleaguered liquor baron Vijay Mallya, it was not possible to assess his capacity to pay their outstanding dues to the tune of more than Rs.9,000 crore advanced to his now-grounded Kingfisher Airlines.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Chandragupta Acharya

7 months ago

There seems to be a misconception that if a loan is written off, the borrower is set free. This is incorrect. Write off is just an accounting treatment internal to the bank. The borrower continues to be liable for the loan even if bank has written it off. In fact, the borrower need not even know the status of his loan. The bank should continue to make efforts for recovery even if the loan is written off. Write off is not a loan waiver.

Ramesh Poapt

7 months ago

List of write offs above rs.5 lacs should be disclosed in public by banks.reference from public should be invited to inform about the undisclosed assets of the borrowers. suitable incentives may also be considered to those, where recovery is made in part or full.

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