SEBI takes up probes very fast; completes it slowly


SEBI took up 107 cases but completed investigations in only 14 cases with large number of cases related with market manipulation, price rigging and insider trading remaining incomplete over the last five years
New Delhi: Market watchdog Securities and Exchange Board of India (SEBI) seems to be moving at the fastest pace in at least five years while taking up cases for investigations, but the same speed seems to be lacking in completing them, reports PTI.
As per the latest data disclosed the market regulator, it took up 107 cases for investigations in the last fiscal till December 2011 -- higher than the full-year figures since 2006-07.
On the other hand, it could complete only 14 cases in the first nine months of 2011-12 -- representing a sharp decline from the full-year figures in the past 10 years.
Although the numbers are not exactly comparable because of data being available for only nine months for the fiscal 2011-12, but SEBI has already exceeded the full-year numbers in five years in terms of number of cases taken up for probe.
In terms of completed cases also, the number for nine months appears too small to catch up with the previous full- year numbers -- 82 in 2010-11, 74 in 2009-10, 83 in 2008-09 and more than 100 during six financial years between 2002-03 and 2007-08, barring 81 in 2005-06.
The figures have been disclosed by SEBI in its latest "Handbook of statistics on Indian securities market', which was published on its website yesterday.
The number of completed cases has been higher than 14 every year since 1995-96.
The biggest decline in the number of completed cases seems to have come in the areas of market manipulation, price rigging and insider trading, while some downtrend has been seen in takeovers and public issue related cases also.
On the other hand, SEBI is taking up larger number of cases related to public issues, while not much changes have taken place in cases of market manipulation and price rigging.
Between April 2011 and December 2011, SEBI completed five cases of market manipulation and price rigging, as against 51 in the previous year, 46 in 2009-10, 62 in 2008-09 and 115 in 2007-08.
Just one case of issue related to manipulation was completed last fiscal till December 2011, as against two in 2010-11 and seven in 2009-10. Also, only three cases of insider trading related probe was completed last fiscal, down from 15 in the previous year and 10 prior to that.
In terms of cases taken up, SEBI initiated 59 probes into market manipulation and price rigging till December 2011 last fiscal, as against 56 in the previous year and 44 in 2009-10.
For public issue related manipulation, SEBI took up 14 cases last fiscal, up from six in 2010-11 and two each in the previous two years.


FDI falls 41% to $1.85 billion during April

The steep decline in FDI comes at a time when India's economic growth slipped to 9-year low of 6.5% in FY12


New Delhi: Reflecting slowdown in the economy and erosion of investor confidence, foreign direct investment (FDI) in India has declined by 41% to $1.85 billion in April, reports PTI.

The country had attracted FDI worth $3.12 billion in April, 2011.

Attributing the decline to global and domestic economic problems, the experts have suggested that the government should push some big-ticket reform initiatives to restore confidence of global investors.

"The government should take important and key reforms immediately like allowing FDI in multi-brand retail and permitting foreign airlines to buy stake in domestic carriers. These moves would help in increasing FDI inflows in the country," Federation of Indian Chambers of Commerce and Industry (FICCI) Secretary General Rajiv Kumar said.

The decline in FDI comes at a time when India's economic growth slipped to 9-year low of 6.5% in 2011-12. The growth in the January-March quarter was merely 5.3%.

More recently, Standard and Poor's and Fitch have lowered India's credit outlook to negative from stable citing reasons such as high inflation and inadequate reforms.

However, in March, the country had received the highest ever monthly inflows of $8.1 billion. Earlier, highest FDI of $5.65 billion was received in June last year.

Cumulative FDI inflows for the fiscal 2011-12 amounted to $36.50 billion.

The sectors which received large FDI inflows in April include services ($449 million), pharmaceuticals ($359 million), construction ($120 million) and power ($68 million), a senior official in the Department of Industrial Policy and Promotion (DIPP) told PTI.

In April 2012, India received highest FDI from Mauritius ($633 million), UK ($366 million), Netherlands ($357 million), Singapore ($146 million) and Cyprus ($69 million), the official added.

The inflows had aggregated to $19.42 billion in 2010-11, down from $25.83 billion in 2009-10.


Alstom T&D India wins contracts worth Rs225 crore from PowerGrid


French company Alstom's Indian unit would set up transmission network for three power projects for PowerGrid in Jharkhand, Chhattisgarh and Maharashtra

New Delhi: Alstom T&D India, an unit of French company Alstom on Thursday said it has won two contracts worth Rs225 crore from state-run PowerGrid Corp for setting transmission network for three power projects, reports PTI.
"Alstom T&D India has been awarded two contracts from PowerGrid Corp worth Rs225 crore," the company said in a statement.
"The contract worth Rs75 crore is for supply, testing, erection and commissioning of transformers for PowerGrid's substation at Ranchi in Jharkhand," it said.
The statement added that another contract worth Rs150 crore is for supply, erection, testing and commissioning of transformers for Dharamjaygarh and Aurangabad substations in Chhattisgarh and Maharashtra, respectively.
Transformers will be delivered from the company's manufacturing facility at Vadodra in Gujarat.
"These new contract are an opportunity for us to associate with PowerGrid in strengthening the backbone of the country," said Alstom T&D India Managing Director Rathin Basu.
Alstom T&D, is the Indian transmission and distribution arm of Alstom Group.




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