Regulations
SEBI slaps Rs17 lakh fine on five entities in Murli Industries case

The manipulation in shares of Murli Industries was initially discovered by the I-T Department, which was referred to SEBI. I-T Department had found that 10 firms incorporated by MIL were "dummy" companies and they had cornered a large part of the MIL shareholding

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs17 lakh on five entities for not providing information regarding a probe into alleged manipulation in trading of shares of Murli Industries Ltd (MIL), reports PTI.

 

The information was sought by the Investigation Authority (IA) of the market regulator.

 

In five separate orders, SEBI has slapped a fine of Rs2 lakh on Dhanesh Capital Services, Rs4 lakh on Fortune Commodeal and Rs5 lakh on Namokar Consultants. Besides, a penalty of Rs3 lakh each has been imposed on two entities -- Sunayana Commercial and Sanskar Trade-Link.

 

SEBI, on various occasions, had served summons to the five entities seeking information related to alleged manipulation in shares of MIL.

 

The market regulator, in its orders on 31st December, observed that by not submitting complete details despite having the same, "appears to be a deliberate action/strategy on the part of the noticee (five entities) to not cooperate with the regulatory mechanism".

 

The manipulation in MIL shares was initially discovered by the Income Tax Department, which was referred to SEBI.

 

IT Department had found that 10 firms incorporated by MIL were "dummy" companies and they had cornered a large part of the MIL shareholding.

 

In this regard, the regulator had asked the them to furnish details that could help in the probe. In their submissions, the entities have admitted to trading in shares of the dummy firms.

 

The IA (SEBI) was conducting detailed investigations in respect of dealings in the scrip of MIL in the wake of prima facie findings that certain dummy companies were incorporated to deal in MIL shares as well as reference from the IT Department indicating possible manipulation in FCCB pricing by Dangi/Ashika group entities.

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Urjit Patel's is RBI's new deputy governor

The clearing of Patel's name comes a few weeks ahead of the third quarter review of the monetary policy, scheduled to be announced on 29th January

New Delhi: Renowned economist Urjit Patel's name has been cleared for appointment as the new Deputy Governor of the Reserve Bank of India (RBI), said a senior Finance Ministry official, reports PTI.

 

"Urjit Patel's name has been finalised," Department of Financial Services Secretary DK Mittal said.

 

Patel is at present a non-resident senior fellow at the Brookings Institution, a US-based think-tank. He is also a consultant to the Boston Consulting Group.

 

Patel has also been an executive director at IDFC, a private finance company.

 

He will take the place of Subir Gokarn, who was in-charge of the monetary policy department, has retired.

 

Gokarn's three-year term had ended in November 2012, but the government had given him one-month extension which expired on 31 December 2012.

 

According to an RBI statement yesterday, the monetary policy department will now be directly under Governor D Subbarao himself.

 

There are four deputy governors in RBI, of which two are from the central bank itself, one is from the banking sector and the fourth is an economist.

 

The clearing of Patel's name comes a few weeks ahead of the third quarter review of the monetary policy, scheduled to be announced on 29th January.

 

RBI Governor in the last policy review had indicated that there could be softening of policy rate in the January policy.

 

Dr KC Chakrabarty, Anand Sinha and HR Khan are Deputy Governors with RBI.

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COMMENTS

M G WARRIER

4 years ago

The curse of short-term appointments at higher levels is that by the time people get a grasp of things in hand, their time to pack off comes. It is unlikely that Urjit Patel touch will be seen in January Monetary Policy Statement, even if Dr Subbarao hands over the relevant portfolio to Patel by then!

Are Credit Sudhaar and CIBIL taking borrowers for a ride?

Credit Sudhaar, a non-specified user entity, is accessing confidential credit records from CIBIL while claiming to help individuals improve and maintain their credit health. Why is the financial regulator, RBI, silent?

Credit Sudhaar, a firm set up by former bankers Gaurav Wadhwani and Arun Ramamurthy, says it has a tie-up with CIBIL for offering credit advisory services and will help individuals in improving their credit health which will in turn enable customers to get better offers from lenders at the CIBIL Market Place. What it does not say is it is neither registered with the Reserve Bank of India (RBI) as a non-banking finance company (NBFC) nor it is a specified user entity of CIBIL but will access credit records of crores of individuals.

 

While there is no word from CIBIL on this strange partnership, what is surprising is how the credit bureau may have allowed a non-specified user entity to access its database. In a press release, Credit Sudhaar said it is associated with Dipran Finance Pvt Ltd. However, on its website it mentions affiliation with Safe Capital, an NBFC. In an email reply, the firm said, “Credit Sudhaar is associated with both Safe Capital and Dipran. Both Safe Capital and Dipran are members of CIBIL”.

 

Even on its website under the FAQ section, replying to a question “Are you approved by the RBI?” it says “Yes. We are affiliated with Safe Capital which is an approved institution as per RBI charter”.

 

Earlier, Credit Sudhaar used to mention itself as an NBFC registered with the RBI, which was changed later.

 

This also means, Credit Sudhaar may be using either Safe Capital or Dipran’s login credentials to access the CIBIL database, especially the portfolio review which gives complete details of an individual. Since Credit Sudhaar is not a specified member entity of CIBIL, this violates Section 22 of the Credit Information Companies (Regulation) Act, 2005 (CIRCA), which says...

 

22. Unauthorised access to credit information.—

(1) No person shall have access to credit information in the possession or control of a credit information company or a credit institution or a specified user unless the access is authorised by this Act or any other law for the time being in force or directed to do so by any court or tribunal and any such access to credit information without such authorisation or direction shall be considered as an unauthorised access to credit information.

 

In addition, the CIRCA clearly defines a specified user who can register with a credit bureau as member entity. Section 2 (l) states “specified user” means any credit institution, credit information company being a member under sub-section (3) of Section 15, and includes such other person or institution as may be specified by regulations made, from time to time, by the RBI for the purpose of obtaining credit information from a credit information company.

 

Besides credit institutions, insurance companies, telephone services providers, credit rating agencies registered with Securities and Exchange Board of India (SEBI), a stock broker or sub-broker registered with SEBI, a trading member of recognised commodity exchange, SEBI and Insurance Regulatory and Development Authority (IRDA) are regarded as specified users under Regulation 3 of the CIRCA.

 

Let’s put it in simple words. Credit Sudhaar is just a specific services provider. CIBIL is allowing credit institutions and others to sell their loan products or other services on its Market Place. Credit Sudhaar is only registered on Market Place to offer “credit advisory” service for which the charges are Rs10,000 (it is mentioned as processing fees).

 

Both Mr Wadhwani and Mr Ramamurthy, the promoters of Credit Sudhaar had worked with Standard Chartered Bank and Citi. Both were also directors of SHAHA Finlease Pvt Ltd, an NBFC formed to buy bad assets from StanChart. On several occasions, the RBI, StanChart and the banking ombudsman had reprimanded SHAHA Finlease for its unprofessional conduct and unruly collection agents. Even on the Internet, there are number of complaints against SHAHA Finlease.

 

Our mails to CIBIL and the RBI remained unanswered till writing the story. We would incorporate their replies as and when we receive it.

 

NOTE: If you are facing similar issue, you may want to get help from Moneylife Foundation's free Credit Helpline http://www.freecredithelp.in/

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COMMENTS

abhijeet pasalkar

3 months ago

Hello Team,

Just went through your article and I must say this is really happening and creditsudhar making people panic.

Yesterday I went to Credit Sudhaar website and filled the necessary information on website. Then website flags the message saying that your credit report is "BAD" to improve the credit report please choose the packages below which ranges from 4500 to 22,000 rupees.

Then I went to CIBIL website and downloaded my report by paying 550, my score mentioned there is 745 to be exact. And score of 745 is normal and acceptable to apply for the loan.

Today afternoon I got a call from Credit Sudhaar guy saying that we just received you application for personal loan and please tell us your requirement for the same and we will also help you to increase your credit score with charges mentioned above. I asked them what your company is doing exactly and how come you people provide free cibil score to individuals then call center guy realized that he called the wrong guy! at the end of the call he said that we just called you for feedback about our services which will help you in future.

Just now I just got another SMS saying that we will improve your score to 850 and to know more call us on mentioned mobile number, that also means CIBIL is selling our personal database to other people who recently downloaded the reports by paying Rs. 550.

I dont know how to react on this, some companies making people panic, some of then selling our data to other people, other people giving us so called valuable advice! Conclusion - your information is not more safe with anyone who stores it online because for few bucks these people are selling our personal and financial information to other people!

REPLY

MDT

In Reply to abhijeet pasalkar 3 months ago

If you hear from companies that offer to fix your credit score for a fee or remove you from the defaulters list for a price, it is false.

To stop people getting cheated twice over Moneylife Foundation had started a Free Credit Helpline. You can seek FREE, guidance and counselling from our experts. But before that we urge you to spend some time reading the resources we have on our helpline to understand what is a credit score and what are the consequences. Here is the link http://moneylife.in/credithelp/#ask-question

geetha

1 year ago

@ Sucheta, mam request u to take this seriously, as we are getting threatening calls from Credit Sudhar, they work for Shaha Fin Lease

geetha

1 year ago

Madam, why dont u write to finance minister Mr Jaietly they promised us acche din

geetha

1 year ago

Madam, why dont u repeatedly write to the governor of RBI and even now to the finance Minister Mr Jaitely they promised us "Acche Din" u this gesture will help thousands of people being targeted by credit sudhar and shaha fin lease

geetha

1 year ago

Why dont u write to the finance minister, they promised by acche din, pl atleast tweeet to Mr Jaitely, your this little courage & strain would make thousands of people live happily

Anant

2 years ago

Yes, it seems all they are cheater they.. How can they ask for money payment to increase the credit- sudhar, this is not the correct way. There is something need to by New Government..

Where is Acche Din? for the peoples who are suffering due to low credit score?

This policy should be in Aam Adamin favor only.

Who can able to take responsibility?

Anant

2 years ago

Yes, it seems all they are cheater they.. How can they ask for money payment to increase the credit- sudhar, this is not the correct way. There is something need to by New Government..

Where is Acche Din? for the peoples who are suffering due to low credit score?

This policy should be in Aam Adamin favor only.

Who can able to take responsibility?

prakash

3 years ago

they are fraud don't trust

mahesh

3 years ago

i am having problem to take personal loan i have applied in many banks but my personal loan is getting rejected, i need help so i can get personal loan, my number is 8121575279

Dominic

3 years ago

Mr Wadhwani and Mr Ramamurthy are very different types of humans who have zero contribution to the society - parasite. Its a shame and I wonder how they ever face mirror or their children.. SHAHA whahah

REPLY

Jatin

In Reply to Dominic 3 years ago

Credit Sudhaar is also doing frauds with by making commitment before enrollment and not providing the committed services.

If you ask refund they will ready to refund 10% of amount you have paid. They should have banned and punished

Dominic

3 years ago

Its bad - what ever is happening is bad and I am going after it. I am going to write a hundreds of email to RBI and finance ministry. I am glad to read moneylifes efforts. I am withyou.

Mural

3 years ago

Credit information companies act 2005 is a draconian law it is more terrible law than the POTA act, this act do not give any chance to know their own status until somebody is rejected a loan.
it is like jailing with out any information.

RBI the nodal agency to implement is acting like bankers bank rather than a level playing authority.

Officers who handle this portfolio must be scrutinized of their act.

It is high time RBI should bring transparent codes with the knowledge of the public.

What does the settlement means to the common man it is closure of the account but to the bankers it is not

REPLY

Sucheta Dalal

In Reply to Mural 3 years ago

Please read all our articles on CIBIL & Credit Sudhaar and our repeated memorandums to the RBI -- former Governor Subba Rao as well as Dr K C Chakrabarty. We need people to join Moneylife and Moneylife Foundation's effort to amplify our voice. Unless that happens, there will be no change. Unfortunately, people tend to write in, take help and then vanish. A few remember to thank us. But none of these activities get support from corporate India, government or corporate supported funding agencies. Unless people who benefit and who want change, join the movement to set right bad policies, we will not be able to do anything.

san arora

In Reply to Sucheta Dalal 3 years ago

am very grateful to Moneylife Foundation for taking this cause up...as no one listens. how can I support, sucheta?

manoranjan

In Reply to Sucheta Dalal 3 years ago

i am 100% with u. First BAN this CIBIL menace , or regulate is as per RBI guidelines.
Who authorizes banks to share personal data and how cibil got authority to work on those data , need to be answered by RBI, before some real scam pops up. In India scams are everywhere and the real looser is common man.
Manoranjan, [email protected]

Dominic

In Reply to Sucheta Dalal 3 years ago

Dear Sucheta - You really have a point here. In such cases there is a need for people's movement. Thanks for getting it till here - I will try my best now.

Dominic

In Reply to Sucheta Dalal 3 years ago

I agree with you Sucheta. I really want this to stop. I am in.

Timmana Gouda D

In Reply to Dominic 2 years ago

Credit Reports and Credit Score should be made available freely to consumer and service providers with their consent ..One should Credit Score like one would carry PAN Card or Driving License ..RBI through CIBIL should empower consumers to get access, counseling for their credit score problems ..punishing banks for wrong reporting ..it high time customer becomes KING Kong ..now banks are KING Kongs it customer is the King , surrounded by RBI regulations , in the garb safeguarding public money , supported by not too easy to understand credit scores and report ..We should make it public movement to credit empower consumers ..I support the movement ..Timmana G

Mural

3 years ago

Definately
credit sudhar should be banned
How can the it assure to improve the credit ratings of individuals
these are fraud companies or banks are making lots of mistakes in reporting, banks should have inbuilt punishment clause in the act

deepak

4 years ago

i am having problem to take home loan i have applied in many banks but my home loan is getting rejected, i need help so i can get home loan, my number is 9773613543

Thitherwards

4 years ago

CIBIL Reported Someone Else's Credit Card In My Credit Report!!

What an irresponsible organization it is & how lethargic their services are, seriously and how lethargic are their services. They have reported someone else's credit card default in my report, due to which I had to go through a lot of pain, loan application denials and very much of a loss by taking loans elsewhere with higher interest rates.

The details are provided here, with email exchanges between CIBIL and I.

http://blog.thitherwards.com/cibil/"> CIBIL & It's Lethargic Services...

Please go through this and share it with all public, however & wherever possible.

REPLY

deepak

In Reply to Thitherwards 4 years ago

CIBIL is India's first credit information bureau. It's a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports.

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