Investor Issues
SEBI to launch campaigns for awareness on risky investments

High returns in less time is trouble, SEBI said in its campaign, while asking investors to check the investment scheme details carefully before investing

 

As it clamps down on fraudsters duping gullible investors of their hard-earned money, the Securities and Exchange Board of India (SEBI) is stepping up efforts to make the public aware about the grievance redressal mechanism available to them and safeguards against high-return claims.
 
The market regulator is looking to expand its investor education and awareness programmes through various platforms, including radio and TV advertisements, wherein its focus areas would include Investor Grievance Redressal Mechanism and Collective Investment Schemes.
 
Besides, SEBI plans to launch mass media campaigns on topics such as promotion of mutual funds as an available investment option for small investors, a senior official said.
 
During the current fiscal ending this month, SEBI has already undertaken an all-out mass media campaign to make the public aware about troubles of investing on hearsay and in pursuit of high returns in less time.
 
SEBI has been pursuing a massive Investor Education and Awareness Campaign since December 2012 through media on relevant topics of investor awareness.
 
As part of the campaign, advertisements are released through popular media such as TV, radio and print (newspapers) and are carried at pan-India basis in Hindi, English and 11 major regional languages.
 
So far, the campaign on topics like ‘Grievance Redress Mechanism’ and ‘Collective Investment Scheme’ have covered more than 90,000 TVC spots, more than 40,000 radio spots and over 600 print editions.
 
Using various media, including TV, radio and print, the SEBI has been specially targeting the collective investment schemes (CIS) wherein investors are promised doubling of their investments within a few months, or guaranteed fixed returns for their entire life after investing some thousands or lakhs of rupees.
 
For the maximum impact, SEBI had roped in professional agencies for these campaigns and have made them in as many as 13 languages — Bengali, Assamese, Oriya, Gujarati, Kannada, Malayalam, Marathi, Punjabi, Tamil, Telugu and Urdu, besides Hindi and English.
 
These campaigns were used all over the country with special focus on states like West Bengal, Bihar, Jharkhand, Chhattisgarh, Odisha, Maharashtra and Tamil Nadu, where a large number of investors are affected by such schemes.
 
“Invest thousands. Earn lakhs in no time. How is this even possible?” SEBI said in one of its CIS campaigns.
 
“High returns in less time are trouble,” the regulator said, while asking the investors to check the investment scheme details carefully before investing.
 
In another campaign, SEBI sought to bust one of the most commonly used tactics by those selling such fraudulent scheme, where they cite the example of someone very close having doubled the money in no time.
 
SEBI has also been cautioning investors through its investor education meetings across the country.
 
A large number of such fraudulent activities, many of which are in nature of Ponzi schemes wherein money is collected from a large number of investors and new investors’ money is used to give returns to some previous clients till the operator runs away, have come to light in recent years.
 
While more than 500 such schemes have already faced SEBI’s ire for defrauding investors, thousands others of significant sizes and scales are estimated to be functional in different parts of the country.
 

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COMMENTS

Vaibhav Dhoka

2 years ago

SEBI's and EOW action should be concerted and should be time bound and action taken should be visible then only such frauds can be reduced.Even registered intermediaries indulge in petty frauds but investors knows that no action is taken,they are not reported.

Stock manipulation: Atlas Jewellery India

After a sharp rise of more than 1970%, the stock price of Atlas Jewellery crashed by over 50%. Sebi is sleeping as usual

 

Atlas Jewellery India (Atlas) took over Gee El Woollens on 31 July 2013. After the current promoters acquired the controlling interest, the company’s name was changed. The present promoters, having an established jewellery business, started buying into Gee El Woollens since 2006. Was the takeover fair? Between 2006 and 2011, the company did not make any disclosure in compliance of the takeover regulations. The market regulator fined Atlas only Rs3 lakh for not complying with the regulations. Atlas effectively started its export business operations in January 2014. From February 2013 to October 2014, the stock price of Atlas shot up by around 350%, to Rs45 from around Rs10. This was not all. In a span of two months, the price shot up another 360% and peaked to Rs207 on 8 December 2014, from Rs45 on 1 October 2014, constantly hitting the upper circuit. The trend reversed soon. Just after hitting the peak, the stock price started falling sharply, constantly being locked in the lower circuit. The price crashed by 52%, to Rs100 on 18 February 2015. The exchanges and the regulator cannot see a clear case of market manipulation.

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COMMENTS

Salvadesswaran Srinivasan

2 years ago

Moneylife seems to be the only magazine investigating such wholescale rigging in the stock market. Everyone else seems too busy hawking financial products to do investigative journalism.

Dance with Germs
About 10% of our body consists of human cells and 90% of germs. What does it mean? 
 
The latest study from the prestigious National Institute of Health (NIH) (USA) has confirmed that only about 10% of the human body consists of human cells of which there are around 1014 in all. The balance 90% belongs to millions of germ, who have become very close friends of man over millions of years. While many of the germs have got incorporated into our cell cytoplasm (the software of every cell in any organ), millions of them reside permanently inside our gut (mouth to the anus), respiratory tract, skin and vagina/penis. 
 
Our ambitious genome project, and the associated stem-cell research, has gone awry, with this new scientific knowledge. While the human genome has around 20,000-25,000 genes, in all, our friends, the germs, have contributed millions of their genes to us. They are a combination of microbiomes, virinomes and also the genes related to their metabolism, called metabolomes. Together, they form the meta-genome of man which needs to be studied from now on. The NIH project, in the past one decade, has been able to study about 1,087 of those meta-genomes; there are millions more to be explored. At the present rate of research, it might take several decades to unravel the mystery, at a phenomenal cost.
 
How did our present science miss this vital knowledge? Some of our venerated leaders were responsible for this delay. The leader of the group was Robert Koch with his Koch’s postulates. Many disease-causing germs could not be identified using these archaic postulates. They were all classed as ‘idiopathic’ diseases. While there were occasional successes en route; for example, Helicobacter Pylori was detected in the gut. We have made little headway elsewhere. It is possible that some of our present-day killer diseases, like heart attacks, brain attacks, cancer, auto-immune syndromes, and even some psychological illnesses, might have their origin in some germs as the triggering factors. A whole sea of hidden knowledge is there for bright future researchers to explore.
 
Germs are a part of the human body; as such, they control our every move. Even to lift a little finger, one needs to get permission from a small germ. This is a very good lesson in philosophy and mundane experiences of daily living. Pride, the greatest enemy of man, has no scientific locus standi in view of the awareness of the human meta-genome. Even the greatest of men have to be subservient to microscopically small germs. Humility, therefore, becomes the order of the day. Humility, according to Indian wisdom, is a sign of highest learning in man. This is a good scientific lesson for all those that are arrogant to think that they can run this world with their money, muscle or brain power.
 
Advances in physics have added new knowledge in this area too. Now, Hans Peter Duerr, the emeritus president of the Max Planck Institute (Munich), has shown that energy and matter are but the two faces of the same coin—“matter is not made out of matter.” The human mind is the same as human body, again reminding us that the Indian sages were right when they wrote that mind is but man himself—manaevam manushyaanaam. This brings us to the crux of the problem in the medical world, the ghost of adverse drug reactions that kill maximum number of people who seek medical help. An elegant study coming from Oxford, Cambridge, Hamburg and Munich universities, led by Professor Bingel at Oxford, showed that the placebo effect, or the expectation effect, which depends on the patient’s faith in the doctor, is much more powerful than all the drugs available.
 
If the human mind is tranquil, the human body rarely suffers from any physical illness. The same applies to psychiatric illnesses. The old idea—that mental illnesses have chemical background—has been challenged scientifically. Almost all psychiatric drugs have come under fire with this new wisdom. If we could dance with our germ friends inside us and keep our mind tranquil, we could, one day, win our war against illnesses. Dance with the germs to live life fully—Vivacitas
 
(Professor Dr BM Hegde, a Padma Bhushan awardee in 2010, is an MD, PhD, FRCP (London, Edinburgh, Glasgow & Dublin), FACC and FAMS.)

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COMMENTS

Narendra Doshi

2 years ago

Interesting & useful info.
Tks Dr. Hegde

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