SEBI seeks online submission of suspicious transaction reports

Both BSE and NSE have accordingly directed all market entities to initiate submission of suspicious transaction reports or STUs directly on the new FIU gateway and ensure compliance to the SEBI directive

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has asked all the entities under its jurisdiction to submit suspicious transaction reports (STRs) electronically through a new direct online gateway to the Financial Intelligence Unit (FIU), reports PTI.


FIU-India is the country's nodal agency for receiving, processing, analysing and disseminating information relating to suspect financial transactions to various enforcement agencies and their overseas counterparts.


Market regulator SEBI has communicated to the country's two leading stock exchanges -- BSE and NSE -- that FIU-India has developed this new reporting gateway for submission of STRs and cash transaction reports (CTRs).


The bourses have accordingly directed all the market entities to initiate submission of these reports on the new FIU gateway and ensure compliance to the SEBI directive.


These reports help the enforcement agencies check manipulative practices, frauds and scams, among others.


Currently, various market and financial sector entities, including brokerage firms and banks, are allowed to submit various reports, including STRs, CTRs and Counterfeit Currency Reports (CCRs) electronically through CDs or manually in physical paper formats.


However, FIU-India has developed a new FINnet Gateway for direct uploading of these reports by the reporting entities.


FIU-India in August had told SEBI, Reserve Bank of India (RBI) and other agencies about the new system.


It had asked them to advise reporting entities to initiate submission of reports through 'test mode' of the FINnet Gateway to check the new system.


The reporting entities were asked to continue with the existing practice of submission of reports in CD form till the 'go-live' date -- provisionally set at October 1 at that time.


However, the bourses in their latest directive have asked the market entities to initiate submission of reports on the FINnet Gateway under the 'Test Mode' for now.


The information required to be furnished to FIU include all cash transactions worth over Rs10 lakh, all suspicious transactions whether or not made in cash and all series of cash transactions below Rs10 lakh but connected to each other and having taken place within a month.


Besides, all transactions over Rs10 lakh involving receipts by non-profit organisations and the transactions where counterfeit currency or forged security or documents have been used are also required to be reported to FIU.


The suspicions transactions are those that give rise to a reasonable ground of suspicion of involvement of proceeds of an offence, appear to be made in circumstances of unusual or unjustified complexity, appear to have no economic rationale or bonafide purpose and those giving rise to suspicion about financing of the terrorism-related activities.


Banking sector NPAs rose to 1.3% in FY12 from 0.97%

NPAs or bad loans of public sector banks rose to 1.53% from 1.09%, however private banks reduced their NPAs to 0.46% from 0.56% during 2011-12

Mumbai: Non-performing assets (NPAs) of the banking sector rose sharply to 1.28% in 2011-12 from 0.97% a year ago due to high interest rate and slowdown in the economy, reports PTI.


The NPAs or bad loans of the public sector banks rose to 1.53% in 2011-12, up from 1.09% in the previous year, said the latest RBI report.


As per the Profile of Banks: 2011-12 released by the RBI, the NPA for India's largest public sector lender SBI along with its associates rose to 1.76% from 1.49% in 2010-11.


SBI's net NPA rose to 2.22% in the first quarter of the current fiscal from 1.61% a year earlier.


However, private sector banks managed to reduce their NPAs in 2011-12 to 0.46% from 0.56% in 2010-11, it said.


Non-performing assets of old private sector banks increased marginally to 0.58% during the year from 0.53% in the previous fiscal.


Also, foreign sector banks had their NPAs below one% at 0.61%, down from 0.67% in 2010-11, RBI said.


RBI, however, has asked the banks to improve their ability to manage stressed assets.


Banks, specifically public sector, have been reporting higher NPAs in their books because of continued slowdown in the economic activities on the back of rising interest rate regime.


World Bank unit CAO assessing complaints against Vizhinjam port

According to the complaint, IFC, the transaction advisor of the project failed to undertake a thorough review of documentation on the Vizhinjam port project's environmental, social and economic impact assessments

New Delhi: The World Bank Group's independent unit Compliance Advisor Ombudsman (CAO) is assessing complaint that the proposed multi-purpose sea port at Vizhinjam in Kerala could adversely impact environment as well as many livelihoods, reports PTI.


The International Finance Corp (IFC), part of the World Bank Group, has been hired as the transaction advisor to assist Vizhinjam International Seaport Ltd (VISL) in structuring and implementing the project. IFC is also managing about $1.6 million in trust funds for the project.


VISL, a special purpose company fully owned by the Kerala government, is developing the sea port near Trivandrum.


According to the CAO, it has started an "assessment" of the issues raised in the complaint.


"The complainants raise concerns about detrimental impact of the port project on tourism and 11 fishing communities situated along the coast of the area. The impacts cited in the complaint include, but are not limited to, water scarcity, loss of livelihood, loss of land and inadequate compensation," as per CAO website.


Further, they have questioned IFC's due diligence work related to the project and contended that it "failed to undertake a thorough review of documentation on the project's environmental, social and economic impact assessments".


The complaint was filed in August by local fishing communities, tourism workers/businesses and other local residents. They were supported by the Kerala branch of Exnora International, the Kerala Hotels and Restaurants Association, and the People's Resistance Committee in Vizhinjam.


The three-phased Vizhinjam International Seaport project is estimated to cost Rs7,800 crore.


CAO reviews complaints from communities in which World Bank's two private sector lending arms, IFC and Multilateral Investment Guarantee Agency (MIGA) are involved.


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