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Banning BlackBerry service will be counterproductive: RIM

New Delhi: BlackBerry manufacturers have suggested forming of a joint consultative forum comprising government, users and service providers for drawing up procedures to intercept services likes Enterprise Mail as banning the service would be "counterproductive", reports PTI.

In a letter to cabinet secretary K M Chandrasekhar, Canada-based Research In Motion (RIM), makers of BlackBerry, virtually refused to provide an intercepting technology for its BlackBerry Enterprise Server (BES) and said it had provided options to Law Enforcement Agencies (LEAs) within India's existing techno-legal framework.

RIM said the BES service uses standard technology which was no different from any of the other encryption products used to provide Virtual Private Network on both wireless and wired networks.

RIM said it also strongly believed that the concerns of LEA and the government can only be effectively addressed in a wider dialogue between government and industry.

"Singling out products like BES in the present instance and imposing ban on such services would be futile and counterproductive," vice president of RIM Robert E Crow said in the letter.

RIM said the ban would be futile as anyone who wanted to misuse of Internet encrypted technology would shift to any one of other numerous and freely available options. The step would be counterproductive because any ban or suspension of services like BES, which have played a key role in success of modern business, will affect information security and efficiency of both commercial and government organisations.

The government has given a time of two months to BlackBerry for providing technology for intercepting its BlackBerry Messenger (BBM) service and BES.

"As this issue impacts the Internet industry as a whole, we at RIM therefore earnestly request that a joint consultative forum, of government, users and providers of encrypted services, be established for collectively engaging and assisting the Government to draw up procedures and process that will be adhered to across the board to address the concerns of LEA and the misuse of such technologies," Mr Crow said.

BlackBerry manufacturers claimed that the approach was necessary because network operators and service providers do not have clear access to target information as the users have.

"...As we understand it, many of these users also want the opportunity to directly engage with the government to find solutions," Mr Crow said.

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Do Indian regulators need a hearing aid?-I

Even as the Sensex scales a 32-month high, thousands of crores are flowing out of equity funds while data from the NSE proves that the Indian equity market is extremely hollow. But regulators are in an ivory tower. They are not listening. This is the first part of a three-part series

A loud gasp of disbelief went up in mid-August when Moneylife reported the data released in Parliament that showed how narrow, shallow and illiquid the Indian equity market is and that it is concentrated in the hands of a few individuals in a few centres.

The minister of state for finance replied to a question in the Rajya Sabha that 50% of the cash market transactions came from a shockingly low 451 investors of which 156 were proprietary traders; 50% of the trading in National Stock Exchange's (NSE) derivatives segment, the main pillar of the Indian stock market system, came from just 106 investors of which 58 were proprietary traders. The minister had sourced this data from the secretive, powerful and extremely profitable NSE.

And, yet, NSE attempted to refute it a few days later - which only raised more questions. But the fact is that the stock depositories have recorded only a modest increase in new accounts over the years. And stockbrokers, who were on a massive expansion spree in 2007, are no longer talking of opening hundreds of branches all over the country. Nor are they hiring furiously.

In early September, when the data for fund flows in and out of mutual funds for August was released, it transpired that another Rs3,000 crore had flown out of equity mutual funds. The total outflow over the past 13 months has been as much as Rs14,000 crore. Moves by the Securities and Exchange Board of India (SEBI) to popularise buying and selling of mutual funds through stockbrokers' terminals have not exactly taken off. The irony is that the stock exchanges, which run with sharp profit motive, have had another great year and market benchmarks have scaled a 32-week high.

The divergence between the apparent market boom and what investors are actually doing is striking. What is the reason for investor apathy? And why do policymakers accept this fact? Nearly 20 years after India embarked on financial liberalisation, why don't we have a significant equity cult? Moneylife has been seeking answers to what went wrong. Well, a lot. One of the key problems could be the lack of interaction between regulators and investors that results in regulations often being formulated without taking into account investor needs and requirements. Even well-meaning regulation sometimes turns out to be a hindrance to market development, but regulators seem unwilling to accept mistakes or consider course-correction even when confronted with strong data. Stock exchanges, which are the first line of regulation, are even more isolated from real investors. They only deal with market intermediaries; even their investor seminars are a one-way communication, that too rarely with top decision-makers.

Moneylife decided to conduct two polls, based on our interactions and the feedback we receive from investors on issues of current importance. The first focused on a recent SEBI diktat that asked brokers to collect detailed financial information from investors, ostensibly to track down and eliminate the flow of black money into stock markets. Many investors think this is pure harassment and a majority are most unwilling to share their entire financial history, in the form of tax returns, with stock brokers. Dozens of such annoying rules are cumulatively responsible for driving investors away from the capital market. It is unjust too, because a big chunk of black money in the markets is routed through disguised sub-accounts of foreign institutional investors (FIIs).

We asked investors what they feel about this SEBI rule. We also asked investors what they feel about the arbitration process and a few issues regarding mutual funds. Our second survey was on portfolio management schemes (PMS) which have collected a huge Rs30,000 crore from investors but have triggered a slew of complaints about mismanagement and losses.

(In the next part, we will look at what investors have to say on a wide range of issues that affect them directly).

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COMMENTS

GAURANG MODI

6 years ago

FOR SEBI RULES YOU HAVE ASKED THAT FEW COMPANIES ARE OPERATOR BASED IN THAT CASE WHICH KIND OF COMPLAINTS ARE SOLVED BY SEBI.
SEBI OPERATOR BASED COMPANY ME WATCH NAHI KARTI HAI.
AND IN BULK SMS CASE ANY PERSON CAN SEND TIPS SO YOU WILL COMPLAIN AGAINEST THEM AND CLOSE THIS TIPS MARKET.

paresh

6 years ago

can we challenge sebi's decisions in court?

REPLY

Keshav B Bhat

In Reply to paresh 6 years ago

Dear Sir,
Who will Bell the CAT?
going to court will cost money and time, Can any IFA can afford it?
If you can afford please do it instead of asking can any one or epecting the others to do it
Regards,
Keshav B Bhat

paresh

In Reply to Keshav B Bhat 6 years ago

just i want to know,can we challenge it or not? i am not asking anyone to do it.

Keshav B Bhat

In Reply to paresh 6 years ago

Dear Sir,
we are living in a democratic country definitly in my view it can be challaged in the court of law
Regards
Keshav B Bhat

Gaurav

6 years ago

According to SEBI executive director's interview in today's Economic Times - critics of his mutual fund policy are 'barking'. see http://bit.ly/9i3Pa2

kishore ghiya

6 years ago

All investors associations regd with sebi and getting grant for investor education seminar be made transparent and mandatory to display identity of the directors. i am sorry at rajkot investor association is headed by husband and wife broker family ramjibhai mavani and ramaben mavani who are actually are doing aniinvestor activity and wasing time of sebi.
secondly unless entry levels are reduced for all the market players nothing will improve.Survey is another form of media manipulation why not sit at investor complaint cell at sebi and exchnages and educate the types of schmes these brokers play on us.
After reliance power ipo and rs 7000 cr scam of satyam you want indian investor to stay or new fresh investor to enter, i do not think so let us admit we have failed in protecting the money of investors and so they are getting out pl admit and discuss what can we do to build thier faith.
visit MF industry collect names of people who redeemed and send them query why are they getting out and prize money for replying you will have all the answers.
Till then retired persons like me will keep on writing and nothing will happen.
visit fool.com USA site and learn how investors clubs are getting self educated,this is the only way to bring back retial investors.
only competition and competition will cahnge the system.

Michael

6 years ago

When the British wanted to Control (rule) India, they used the then Kings and Rulers to scuttle the others who would make trouble and then took over our entire country.

Now when the FII's wanted control, many so called measures to protect the small investor were introduced which had the effect that was wanted drive the local participation from the market. Explain why a 5 year Bank Deposit should attract a Tax Benefit when and ELSS does it in 3!. And that to in the DTC even ELSS has been remved as tax saving instrument

The politicians and Sebi are hand in glove to pave the way for the FII's "enter when you want, leave when you want" (may be fill our pockets too on your way out) No restrictions this market is yours. Anybody troubles you leave it to us to get rid of them!!!

REPLY

Roopsingh

In Reply to Michael 6 years ago

Dear friend-this FII is none other then mauritious route which enables our corrupt politicians to park through participatory notes(these P-notes are 100% black money becasue source of income or identity of investor is legally hidden-so dont think that only white skin FII are involved-KALE ANGREZ JYADA dangerous hai-

Keshav B Bhat

6 years ago

Dear Sir,
We Indians generally know how to boast ourseves "how we are united in divercity", how our culture is rich in traditions and values etc but most of us think of ourselves and dont want to respect others feelings and views. Most of us say we are trying to do this and that for the society but mostly all these are only eye wash and nothing else. Today all who are in SEBI or AMFI or PFRDA or any regulatory position are in reality not interested in bringing more and more small investors in to equity market either directly or through MF route may be because of their own personal interest(what ever it may be best known to themselves). The AMFI website boasts thousands of investor education programmes conducted by AMCs, but fail to give the figure how many actual investors attended the same and how many have started investing themselves after attending such programmes. They are busy with wiping out the IFAs insted of improving the qality of IFAs through whoom a lot of investors can be benefited as they are the people who can reach to the door of the investors.
May GOD give our leaders and regulators , the wisdome and sense to work for the betterment of the common people.
Regards
Keshav B Bhat

REPLY

Roopsingh Solanki

In Reply to Keshav B Bhat 6 years ago

I agree to you 100% that we indians take undue pride of our diversified culture and unity in diversity is all BAKWAS-actually we are a stagnant culture grasped by reservations which are thousand years old(like casteism and religionism and language difference)-but above all this lies GREED for individuality-our all thoughts surround around our FAMILY welfare(which has been inherited by us from family drama of MAHABHARATA and RAMAYANA-our none of EPIC highlights works of social workers who worked for welfare of whole of society-we expelled teachings of MAHATMA BUDDHA who taught for equality in society-his teachings could have created unification in india just like china or japan or korea-but our BRAHMINISM expelled all BUDDHIST thoughts and established Casteism with utmost power-even it asked indinas not to go abroad because it could brainwash our minds-remember history-INDIA was never defeated during influence of BUDDHIST ERA like CHANAKYA and CHANDRAGUPTA defetaed even Alexander great and his successor-but when Buddhism was expelled-india imediatly fell in hands of Muslim invaders and since then it has been crushed by various foreign forces-and getting more and more diversified and weak-we must thank Britishers that they gave us a united india which we never could have done-but friends-if we really want india to be strong-we will have to change ourselves from our roots and rethink over our present society model-then only we can eliminate corruption and can create a harmonious society with equal chances based on qualification and ability-

shankar

6 years ago

The regulator needs a hearing aid.

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