Regulations
SEBI seeks Sahara account details from banks, help from RBI

SEBI has also written to Sahara group to furnish the details of bank accounts and properties held by them so as to enable it to take recourse to appropriate legal remedies as per the Supreme Court directions

 
New Delhi: Market watchdog Securities and Exchange Board of India (SEBI) has asked various banks to provide it all account details of the Sahara group as well as their promoters and directors, and is also seeking help from the Reserve Bank of India (RBI), Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) as part of a multi-pronged probe into the entity, reports PTI.
 
Besides, SEBI has also written to Sahara group to furnish the details of bank accounts and properties held by them so as to enable it to take recourse to appropriate legal remedies as per the Supreme Court directions, the Parliament was informed last week.
 
The details of actions taken by SEBI, which also includes its request to Maharashtra and Uttar Pradesh governments to initiate civil and criminal proceedings against two Sahara group companies, were listed by Minister of State for Finance Namo Narain Meena in a written reply to a Lok Sabha question.
 
SEBI has also launched prosecution and adjudication proceedings against Sahara and its promoter/directors, Meena said, adding that the regulator is also regularly submitting to the Supreme Court a case status report approved by Justice BN Aggarwal, as per the court directions.
 
Meena said SEBI has written to "NABARD, Enforcement Directorate, Central Economic Intelligence Committee, RBI and Financial Intelligence requesting them to share with SEBI any material/information in their possession about the Sahara group of Companies, more particularly SIRECL and SHICL".
 
He added, "They were also requested to examine or inquire any possible violation of the provisions of law falling under their jurisdiction and share with SEBI the outcome of such examination/inquiry."
 
The Supreme Court on 31st August asked two Sahara group companies (SIRECL and SHCIL) to refund the amount collected through issue of OFCDs (Optionally Fully Convertible Debentures), with annual interest of 15%, within three months to SEBI, which was mandated to facilitate the repayment of the money to the bondholders.
 
As per the order, the total amount collected by these two companies had an outstanding balance of Rs24,029.73 crore as on 31 August 2011, the minister said, while adding that the Sahara group was also asked to furnish the documents relating to these investors within 10 days of the order.
 
As Sahara failed to meet the stipulated time limit, SEBI filed a contempt case before the Supreme Court. The group also filed two appeals before Securities Appellate Tribunal.
 
The appeal for extension in time for submission of documents to SEBI is listed for hearing on 20th December, while the second appeal for allowing deposit of money with the registrar of SAT was dismissed by the tribnual on 29th November.
 
The group then filed an appeal before the Supreme Court against the SAT decision, pursuant to which "an amount of Rs5,120 crore has been refunded to SEBI by the Saharas", the minister said. 
 
Meena further said that SEBI has written to the Chief Secretaries of Uttar Pradesh and Maharashtra, requesting them to direct initiation of civil/criminal proceedings against Sahara through the relevant state agencies.
 
This follows complaints received by SEBI from people that their investments in OFCDs have been switched over without their consent.
 
SEBI has also written to the depositories requesting them for details of holdings in demat accounts of the Sahara group and their promoters/directors, Meena said.
 
It has also released a series of ads in national dailies cautioning investors in Sahara not to yield to "any pressure from Saharas or their agents/officials for converting or switching over their existing investments in the bonds to any of their other schemes like Q Shop etc".
 
SEBI has also asked bondholders to hold on to their original documents and produce the same to it when called for, keeping in view the investor complaints received alleging "forceful conversion of OFCDs into instruments of other Sahara Group companies," Meena said.
 

User

Competition Commission probes alleged unfair practices in stem cell market

The Commission have received complaints alleging that some hospitals are not allowing parents to choose the bank to preserve their new born's stem cells

New Delhi: The Competition Commission of India (CCI) is investigating alleged unfair business practices by hospitals and stem cell banks that restrict parents from preserving a new born's stem cells at banks of their choice, reports PTI.

 

Stem cells can be differentiated into specialised biological cells and also have the ability to regenerate on its own. These cells, which can help in treating a variety of diseases, are generally taken from cord blood and bone marrow.

 

Sources said that CCI is looking into allegations of unfair market practices among hospitals and stem cell banks.

 

The Commission received a complaint alleging that some hospitals are not allowing parents to choose the bank to preserve their new born's stem cells, they added.

 

"Instead, they (parents) are asked to keep the stem cells at a particular bank with which the hospital has a tie-up. This practice is anti-competitive and restricts available choices," sources noted.

 

The Director General (DG), the Commission's investigative arm, is looking into the issue, they added. Among others, the fair trade regulator is probing the case under Section 3 of the Competition Act, that relates to anti-competitive pacts.

 

A new born's stem cells are preserved so that if necessary, these cells can be harvested to treat diseases in the future. They are taken soon after birth from the umbilical cord blood.

 

According to sources, India is a growing market for stem cells preservation and is currently estimated to be worth about Rs500 to Rs600 crore.

 

The Commission, which has the mandate to keep a tab on unfair trade practices, refers cases to the DG only after finding prima facie evidence.

User

Corporation Bank to introduce UAE Exchange's FLASHremit in India

The pact will enable customers to send money real time to their beneficiaries' bank accounts in Corporation Bank

Dubai: India's Corporation Bank and global remittance and foreign exchange company UAE Exchange have entered into an agreement to offer FLASHremit services to customers, reports PTI.

 

The pact will enable customers to now send money real time to their beneficiaries' bank accounts in Corporation Bank.

 

The service will enable money transfer to bank account 'within minutes' and also intimate both sender and receiver through SMS on account credit.

 

Amar Lal Daultani, Executive Director - Corporation Bank, said that this new arrangement will benefit our customers.

 

"We have had a strong and long relationship with Corporation Bank. This new understanding for FLASHremit further strengthens it. UAE Exchange has always aimed at making money transfer a seamless and speedy experience, which is an aim we share with Corporation Bank," Y Sudhir Kumar Shetty, COO - Global Operations, UAE Exchange, said.

 

Seven banks in India have partnered with the remittance major since the launch of FLASHremit. Apart from India, FLASHremit extends convenience to customers in Philippines, Nepal, Sri Lanka and Pakistan & Bangladesh.

 

UAE Exchange has over 650 branches across 30 countries in five continents and has correspondent relationships with over 150 global banks.

 

Corporation Bank has been serving millions of customers since 1906. With over 6000 service outlets overseas, it is one of the premier public sector banks in India.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)