Police raid office, said to belong to the MLM company, in suburban Mumbai; recover data of about 24 lakh people related to the company
The Esplanade Court in Mumbai has extended the police custody of Tarak Bajpai, chief operating officer of Speak Asia online Pte Ltd, and four others who were arrested last week on charges of fraud.
According to our sources, the police today raided an office in Walecha Chambers, Andheri, and found important data like names and other details, in the electronic form. It contains records of about 24 lakh people associated with Speak Asia, they said.
However, the multi-level marketing (MLM) company has been providing different figures on the number of panellist registered with it. During the court proceedings on the arrests, Speak Asia's counsel has said the company has 14 lakh panellists. This is lower than the figure of 19 lakh panellists that the company's chief executive Manoj Kumar Sharma had mentioned at a press conference on 16th May.
While the EOW is looking out for Mr Sharma and Haren Kaur, chairperson of Speak Asia, there are indications that the police may arrest some more persons associated with the multi-crore fraud.
Many agents of Speak Asia are said to be filing complaints against the company. According to information, a number of people from across the country are also coming forward to file complaints against Speak Asia at the offices of the Economic Offences Wing of the police.
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The Committee has also said that all borrowers should be allowed to switch over from fixed to floating rates, or vice-versa, at least once during the tenure of the loan, and at an appropriate and reasonable fee
The Damodaran Committee on bank customer services has said that there should be no differentiation in the interest rates charged by banks to borrowers with the same risk rating and in the same category. Banks should also inform the borrower about the benefits of switching over to the base rate from the floating interest rate home loan, or vice-versa, the committee said in its report that was published by the Reserve Bank of India on Wednesday.
"In a floating interest rate scenario, when an entire class of borrowers has the same characteristic and risk level, the point of entry in time (old customers and new customers) should not create discrimination in interest rate offered to the customers. In such cases, the spread over the base rate should not vary when individual risk rating for loans is absent, as is usually the case in retail loans," the report said. The committee, set up by the RBI was headed by M Damodaran, former chairman of the Securities and Exchange Board of India.
Across the country, bank home loan customers who have floating interest rate loans have expressed unhappiness over the discrimination in interest rates offered to new customers. Existing customers of banks who are disadvantaged have been questioning the logical basis for giving such concessions to a few new customers and how the banking risk is lowered suddenly for such class of customers.
It recommends that "all home loans should permit a switchover between fixed to floating or vice-versa, at least once during the loan tenure, at an appropriate and reasonable fee."
"The risk rating system should be a critical input for setting pricing and non-pricing terms of loans and where the risk for any class of customers is the same, the interest rates for fixed rate loans should not vary at the same point of time, and for floating rate loans vary differently for different sets of customers at different points of time," the committee said.
The Damodaran Committee said it feels that regulation should plug such anomalies which create doubts about fairness regarding pricing, which should be transparent, non-discriminatory and also objective.
The Committee also said that there should be explicit regulatory prescriptions and a closer regulatory oversight of such actions by banks, which raise customer issues clogging the grievance redressal mechanisms.
On housing loan foreclosure charges, the committee suggested that banks should not impose exorbitant penal rates towards foreclosure of home loans and a policy should be devised to ensure that a customer is not denied the opportunity to enhance his economic welfare by making choices such as switching to other banks or financial entities to enjoy the benefits conferred by market competition.
The committee also says that all home loans must clearly state the most important terms and conditions and make this available in the local language and in a bigger font (preferably size 12). Banks should automatically provide the annual account statement, containing details of payments made towards principal and interest including the principal outstanding, to home loan customers without request from them.
The Damodaran Committee also suggested that "home loans backed by insurance products, in any eventuality, should be automatically settled by the insurance amount with minimum inconvenience to the nominees and heirs. The procedure should be explained upfront to the customers."
Another key recommendation is on title deeds. "The title deeds should be returned to the customers within a period of 15 days after the loan closure and the Boards of banks should put in place a suitable compensatory policy to compensate the customer for delayed return of title deeds or where there is a loss of title deeds in the custody of the banks."
The report says regulation should ensure that customers clearly understand the pricing policies of banks, as the committee in its interactions all over the country saw that variances in these issues give rise to customer dissatisfaction.
The notification said that in case an applicant holds multiple registrations with the regulator, it shall make only one application to SEBI providing certain information about itself and the acquirer and its directors or partners
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) yesterday approved a single-window clearance system for market entities, including stock brokers, merchant bankers and credit ratings agencies, for grant of prior approval for change in control of their management structures, reports PTI.
"With a view to expedite the process of granting prior approval (in case of change of control), it has been decided to adopt a single window clearance at SEBI, for the...
intermediaries in case of their having multiple registrations with SEBI," the market regulator said in a notification.
Market intermediaries like stock brokers, merchant bankers, debenture trustees, registrar to an issue and share transfer agents, underwriters, depository participants, bankers and credit rating agencies that have more than one registrations with SEBI, have to submit multiple applications for prior approval to change in control.
The notification said that in case an applicant holds multiple registrations with the regulator, it shall make only one application to SEBI providing certain information about itself and the acquirer and its directors or partners.
The information sought is whether any application was made in the past to SEBI seeking registration in any capacity which was not granted and its details, and what kind of action was initiated on the application and its current status.
"The acquirer shall also confirm that it shall honour all past liabilities/obligations of the applicant, if any," SEBI said.
The applicant has also to furnish details on any investor complaint pending against it, details of litigation, payment of due fees to SEBI, and a guarantee that there will be no change in the board of directors of the firm, till the time prior approval is granted.
It would also have to pledge to inform all its existing investors and clients in order to enable them to take informed decision regarding their continuance or otherwise with the entity with new management.
In case, the applicant is registered stock broker and or depository participant, it shall also have to obtain approval or non-objection certificate from all the stock exchanges of which it is a member and submit a self attested copy of the same to SEBI.
Any prior approval granted under the single-window system shall be valid for a period of 180 days from the date of communication.
In June this year, SEBI had waived the requirement for bankers, debenture trustees and credit rating agencies to seek prior approval from it to change their status and constitution, in a move aimed at doing away with unnecessary rules and red-tapism.
However, market entities still need to seek SEBI's prior approval in case of change in control.