Stock Manipulation
Stock manipulation: Gini Silk Mills
Gini Silk Mills shot up by 951% from March 2015 to March 2016. Is the regulator's high-cost surveillance system effective?
 
Gini Silk Mills manufactures woven and printed fabrics. With its manufacturing facility located at Tarapur (Maharashtra), Gini Silk Mills states on its website that it supplies fabric to Wills Lifestyle, Westside, Peter England, Indigo Nation and Shoppers Stop. However, there is no mention of its clients in the company’s annual report for 2014-15. The textiles manufacturer reported revenue of Rs41.02 crore and a profit of Rs2.86 crore for the year ended December 2015. For the previous year, the revenue reported was almost the same, at Rs41.38 crore, and profit was slightly lower, at Rs2.24 crore. With no significant growth in sales or profits, the stock price of Gini Silk Mills shot up an astonishing 951%, or nearly 11 times, over the past one year. From a low of Rs29 on 23 March 2015, the stock shot up to Rs305 on 31 March 2016, with an average of just 40 trades a day. 
 
As on 31 December 2015, Gini Silk Mills had 614 shareholders holding 25% stake in the company. The number of shareholders has reduced from around 800 in December 2013. Is this another pump & dump operation? Will the regulator investigate?

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India's factory output logs 2% growth, inflation falls

The annual food inflation for the month also showed a decline to 5.21% from 5.30%

 

In what comes as a twin dose of positive news, India's factory output for February logged a growth of 2% after three straight months of decline, even as annual retail inflation fell to 4.83% in March from 5.26% in the month before.
 
The annual food inflation for the month also showed a decline to 5.21% from 5.30%, but the manufacturing sector continued to be pressured, barely managing a growth of 0.7%  in February, as per data released by the Central Statistics Office on Tuesday.
 
The news comes over and above the predictions by the Indian Meteorological Department that after two straight years of drought, India is likely to be showered with above-normal rains during the upcoming monsoon season, with a probability of more than 94 percent precipitation.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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'Government employees may soon invest pension fund share in equity'

Pension Fund Regulatory and Development Authority (PFRDA) chairman Hemant Contractor said that the PFRDA is also pushing with the government to give the government subscribers the choice of choosing their pension fund manager

 

Government employees may soon be able to invest up to 50 percent of their contribution towards the pension fund into the equity market, from the current limit of 15 percent, India's pension fund regulator said here on Tuesday.
 
"It is under government consideration. We have sent a proposal to the government to give the government employees an option to invest up to 50 percent in equities," Pension Fund Regulatory and Development Authority (PFRDA) chairman Hemant Contractor told reporters here on the sidelines of a pension fund conference.
 
He said the PFRDA is also pushing with the government to give the government subscribers the choice of choosing their pension fund manager.
 
"Currently the government employees do not have any choice. With this they will be able to go for private fund managers to make investments into stock market," said Contractor.
 
The number of government subscribers currently stands at 45-46 lakh, which accounts for 44 percent of the total pension fund subscribers.
 
PFRDA is also looking at guidelines for allowing two percent of the government pension moneys to flow into alternative investment funds (AIFs) every year, he said.
 
Currently only 2 percent of private pension moneys are allowed to be invested in AIFs.
 
About the government's National Pension Scheme, Contractor said that in FY16 alone, NPS has added 1,18,000 subscribers, which is more than the subscribers of previous four years.
 
"In previous four years till March 31, 2015, NPS had 87,000 subscribers and in 2015-16 alone we have added 1,18,000 new subscribers. Tax breaker though was the kicker for NPS but along with it, many more bank branches were roped in for NPS. We expect the launch of eNPS (online NPS facility) to have contributed substantially,” he said.
 
The government has made 40 percent of the NPS tax-free at the time of withdrawal.
 
About the less successful micro-pension product Atal Pension Yojana (APY), he said that it expects to add 60-70 lakh new subscribers in FY17.
 
"We will be able to generate more subscribers this year. We are at 25 lakh subscribers in APY and hope to reach close to a crore in this fiscal," Contractor said.
 
State Bank of India is offering the APY scheme online in some of its branches to get more traction. 
 
PFRDA has also requested the government to extend the deadline for APY, which expired on March 31, 2016, by at least a year, Contractor said.
 
APY is a micro-pension product with a government guarantee, which distinguishes it from other micro-pension schemes like Swavalamban Yojana. The scheme is for the informal sector so deadline should be extended by at least a year, he said.
 
So far 90,000 bank and post office officials have been trained for APY and as many as 20,000 post offices across the country will be engaged in promoting the scheme.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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