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Food inflation dips marginally to 10.15%

New Delhi: Food inflation dipped for the sixth straight week and dropped to 10.15% for the week ended 13th November from 10.3% in the previous week. The fall has been attributed to cheaper vegetables and pulses, reports PTI.

Price of food items like pulses and vegetables declined during the week on improved availability after the end of the monsoon season.

While the price of pulses fell by 7.58%, vegetables became cheaper by 3.76% on account of a sharp dip in potato prices that reduced by as much as 48.70% during the week.

However, food items like eggs, meat and fish rose by about 23%. In vegetables, onion was expensive by 17.03% on annual basis.

Also, fruits and milk became costlier by 21.85% and 16.90%, respectively, on a year-on-year basis.

The decline in food inflation has raised hopes that overall inflation may decline to around 6% by the end of the year, as predicted by the government.


SEBI ban: Sahara questions SEBI's jurisdiction

New Delhi: Questioning the Securities and Exchange Board of India’s (SEBI) ban on its two entities for raising money through a debenture instrument without informing the regulator, Sahara Group said the matter is out of the jurisdiction of the watchdog, reports PTI.

“It is a ministry of corporate affairs matter,” Sahara said in a statement.

Citing the opinions for former Chief Justice of India AM Ahmadi, former presiding officer of Securities and Appellate Tribunal (SAT) C Achuthan and others, Sahara said optionally fully convertible debenture (OFCD) was “definitely out of the jurisdiction of SEBI.”

SEBI on Wednesday asked two entities of Sahara Group not to mobilise funds from equity markets or from issuance of any security to the public while restraining group supremo Subrata Roy from approaching public for raising money.

The regulator also prohibited the promoters mentioned in the prospects of these two companies—Subrata Roy, Vandana Bhargava, Ravishankar Dubey and Ashok Roy Choudury—from issuing prospectus or advertisement soliciting money in any manner from the public till further directions.

SEBI issued show cause notices to Sahara India Reals Estate Corporation (SIRECA) and Sahara Housing Investment Corporation as to why action should not be initiated, including directions to refund the money raised by them through a debenture instrument OFCD.

Perusing the balance sheets of group entities, the regulator observed Sahara India Commercial Corporation Ltd had a balance of up to Rs7,000 crore for five years ending 2009 under the head “optionally fully convertible debentures” and under “unsecured loans”.

Prima facie, these Sahara Group companies were raising massive sums in the form OFCD that was characterised by lack of transparency, SEBI said, adding these two deliberately did not give the information pertaining to the issues.

SEBI further said that it appeared that such huge funds were raised by circumventing the applicable laws.

The regulator passed the order on a complaint from Professional Group for Investor Protection alleging that no disclosure was made about one of the housing companies of the group, SIRECA, raising money by issuing convertible bonds for many months.

Examining the matter under issuance of capital and disclosure requirement, the order said, “It is very clear that the companies have conveniently omitted the necessary statutory declaration of compliance.

“If companies are allowed to go ahead in such manner and raise vast amounts funds of in the guise of private placement it would be mockery of capital market and all established mechanisms to protect investors interest.”

Sahara said it has already clarified the reason why the particular information sought by the market regulator was not furnished.

It further said that SEBI had taken a wrong action against the company with sole “allegation that we have not supplied the document they asked for”. The order is very “unreasonable and arbitrary”, it added.




6 years ago

A Declaration in the Public Regarding, SEBI vs. SAHARA
Inviting a reference to the declaration made in the public through various local and national news papers circulating in India by the Sahara India (Source: regarding “SAHARA’S RESPONSE”, published in the above said news papers on or before 28th of November, 2010, I would like to say as a respectable member in the public, that the Securities and Exchange Board of India (SEBI) is a statutory and regulatory body like RBI under an Act of parliament and established by the Govt. of India having all the delegated authority to regulate the securites market and to exercise full control and supervision over the entities dealing with the securities market for the interest and protection of the investors/prospective investors to establish the integrity of the securities matket.
Thus, such a statutory body which is functioning under the direct control and supervision so also delegation of power by the Central Govt., cannot be irresponsible and wrongful, as contended by ‘Sahara’ in the various local and national news papers, which is highly ridiculous.
I would like to draw the kind attention of the general public, that, under sections 11(1), 11(2)(e), 11(2)(ia), 11(3), 11(4)(b), 11A(1)(b), 11B, 11C(1)(a), 11C(3) of the SEBI Act 1992 read with other rules and regulations specified by SEBI from time to time, SEBI has got every power, right and jurisdiction to call for information and record, to investigate and enquire about any entity or person issuing, dealing and transacting with any of the securities and securities market for the integrity, interest and protection of the securities market and prospective/existing investors.
But, as contended by ‘Sahara’ in the news papers, it seems quite frivolous, comparing SEBI with IRDA, both are being statutory and regulatory bodies functioning directly under the Central Govt., when, ‘Sahara India’ is an unlisted public company and where as it should obey the orders of its higher authorities as per the powers delegated by the Central Govt. and respective statutes to them.
SEBI is a highly responsible and rightful authority, which must have taken all the information from the Ministry of Corporate Affairs and other respectable, responsible and affected persons regarding non-maintenance of transparency by the ‘Sahara India’ in dealing with securities market, for which legal action is initiated/taken against ‘Sahara Inida’, which is quite appropriate and correct in every respect for protection, interest and integrity of the securites market.
The Optionally Fully Convertible Debentures (OFCDs) issued by the ‘Sahara India’, by not complying with the various provisions of the Companies Act, 1956, like sections 73(1), 73(1A), 73(2), which are given in detail in the SEBI’s Order dtd. 24th November, 2010 at Mumbai by Dr. K.M. ABRAHAM, Whole-Time Member of SEBI, vide No. WTM/KMA/CFD/316/11/2010, is fully and absolutely coming under the purview and jurisdiction of SEBI and whereas the said company, being itself irresponsible and wrongful for any fraudulent purpose, totally bypassed and ignored such a statutory body like SEBI and did not maintain transparency after repeated calls by SEBI from time to time for providing information regarding the issuance of the said OFCDs in question, by the very act of which the company did not also maitain a good corporate governance.
So, from these above mentioned wrongful/fraudulent/suspicious/doubtful acts of the company, for which, each and every time, the question of non-maintenance of transparency is being sought by the Statutory Bodies like SEBI, RBI and reiterated by the Supreme Court of India on June 09, 2008, in a case pertaining to & between RBI and Sahara (SIFCL), obviously, a reasonable apprehension of doubt is evident in the general public, as to why, the company do not want/intend to list it’s securities in a recognised Stock Exchange so also do not want/intend to rate it’s securities by a registered Rating Agency such as like CRISIL or any other, when it is advisable for a company to list it’s securities on a recognised Stock Exchange and rate it’s securities through a registered Rating Agency, for the investors to invest safely in the Securities Market, for which it becomes imperative for those statutory bodies like SEBI, RBI, etc. to take stringent action against the company, who is indulged in the fraudulent and suspicious activities, like manipulating massive funds from the public very cleverly for their own livelyhood and for the persons who are associated with and co-operating to them (either by ignoring or by bribing the responsible public authorities of the Govt.) which is prejudicial to the public interest.
In order to provide greater transparency to such issuances of debt securities on private placement basis and to protect the interest of the investors in such securities so also in exercise of the powers conferred by Sec 11(1) of the SEBI Act. 1992 and to protect & promote the development of and to regulate the securities market, SEBI issued a Circular dated No. SEBI/MRD/SE/AT/36/2003/30/09, DT. September 30, 2003, stipulating the conditions to be complied with in respect of private placement of debt securities. These conditions governed three aspects: -
(i) Issuance,
(ii) Listing and
(iii) Trading of privately placed debt securities.
The Circular provides that the company making issue of debt securities is required to make full disclosures (initial & continuing) in the manner prescribed in Schedule II of the Companies Act, 1956, SEBI (Disclosure and Investor Protection) Guidelines, 2000 and the Listing Agreement with the Stock Exchanges.
But, the company instead of complying with all these above, persistently neglected / defaulted in carrying out it’s obligations and functions under the Law, and continuously flouted the law of the land quite deliberately, which should be drastically dealt with not only by the statutory bodies/authorities but also by the Govt. of India/Central Govt., so as to, for lifting or piercing through the corporate veil, for the interest of the innocent public and the integrity of the Securities Market, to bring the company into a size.
A Respectable Member of the Public.

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