According to a PIL filed in the apex court chit fund companies are collecting money from the public in violation of laws and this need to be checked
The Supreme Court on Tuesday issued notices to the union government, Reserve Bank of India (RBI) and market regulator Securities and Exchange Board of India (SEBI) seeking their response on chit fund issues.
A Bench headed by Chief Justice P Sathasivam asked the government and the regulators to file their response within four weeks on a public interest litigation (PIL) for putting in place a proper mechanism to regulate the functioning of chit funds in the country.
Advocate Prashant Bhushan, appearing for ‘Humanity Salt Lake’, an NGO, submitted that there has been inaction on the part of the Government in regulating chit funds resulting in multiple scams across the country.
He submitted that chit fund companies were collecting money from the public in violation of laws and that needed to be checked.
The petitioner referred to various chit fund scams including the recent multi-crore Saradha chit fund scam in West Bengal and pleaded before the apex court for its intervention in the matter to prevent the recurrence of such cases.
After hearing the submissions, the Bench agreed to look into the matter.
Jignesh Shah-led Financial Technologies sold Singapore Mercantile Exchange and SMX Clearing Corp to Intercontinental Exchange Group’s unit for $150 million to repay its debts towards ECB and forex loan
Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) said its unit has sold its entire stake in Singapore Mercantile Exchange (SMX) to ICE Singapore Holdings Pte Ltd for $150 million.
Following the stake sale announcement, FTIL shares jumped 11% to Rs201.4 on the BSE during the early morning trade Tuesday.
Financial Technologies Singapore Pvt Ltd, (FTSPL), is a unit of FTIL. The Jignesh Shah-led company sold SMX and SMX Clearing Corp (SMXCC) to Intercontinental Exchange Group Inc unit ICE Singapore Holdings.
In a regulatory filing, FTIL said, “We will primarily utilize the amount towards repayment of outstanding debt towards external commercial borrowings (ECB) and foreign currency loan (FCL) to banks subject to regulatory approvals, if any, pursuant to which FTIL will become debt or lien-free.”
The transaction was approved by the board of directors of FTSPL and FTIL on 18 November 2013 with signing of definitive agreements and is subject to certain customary closing conditions and approvals.
The SMX, promoted by FTIL has started its operations from 31 August 2010. SMX operates as an exchange regulated and licensed by the Monetary Authority of Singapore (MAS).
National Spot Exchange Ltd (NSEL) NSEL, promoted by Jignesh Shah-headed Financial Technologies is already being probed by various other regulators and investigative agencies with regard to a Rs5,600-crore payment default and persistent violations of various regulations.
At 3.10pm Tuesday, Financial Technologies was trading 2.9% higher at Rs186 on BSE, while the benchmark Sensex was flat at 20,899.
Anna Hazare, in a letter asserted that he had nothing to do with the AAP and said that it was incorrect for Arvind Kejriwal to use his name in the party's campaign in Delhi elections
Social activist Anna Hazare has asked his 'once upon a time' staunch follower and Aam Admi Party (AAP) founder Arvind Kejriwal to refrain from using his name during the Delhi Assembly elections. In reply, Kejriwal said he had not used Anna's name, photo, film, poster or any other material for his party's campaign in Delhi.
Hazare, in a letter written to Kejriwal, said some people had met him and alleged that the AAP was using funds collected during the Jan Lokpal movement for AAP's election campaign in Delhi. Expressing worries over SIM cards being created and sold using his name and he may be made an accused in a court case, the social activist said, “When I have nothing to do with those SIM cards, then why I have been made an accused in the case. That is why I suspect my name is being misused.”
Kejriwal, however, said neither he nor his party has anything to do with these cards. Kejriwal, in his letter to Anna, said, "We do not have anything to do with the cards. Perhaps, you have forgotten that during the Jan Lokpal movement in February 2012, the card had been issued with your permission".
Talking about misuse of funds collected from public during the JanLokpal Aandolan, Hazare alleged that AAP may be using the funds for the assembly election. He said he had come to know many people had been given salaries up to Rs30,000 from the funds.
In his reply, Kejriwal has called for someone like Justice Santosh Hegde or a retired justice to conduct an inquiry into the allegations in misusing the funds within seven days.
Read the letter written by Anna Hazare...
Read Arvind Kejriwal's reply...