Investor Issues
Union Bank, OBC revise deposit rates on FCNR accounts

As per the revised rates announced by Union Bank, the deposit rates have been revised downwards by 4-12 basis points on 1-5 year maturity in dollar-denominated accounts

Mumbai: Public sector lenders, Union Bank of India (UBI) and Oriental Bank of Commerce (OBC) have revised their deposit rates on FCNR accounts (foreign currency non-deposit accounts) with maturity of one-five years from today, reports PTI.

 

As per the revised rates announced by Union Bank, the deposit rates have been revised downwards by 4-12 basis points on 1-5 year maturity in dollar-denominated accounts.

 

Similarly, rates have also been revised for FCNR accounts in the euro, pound, Australian and Canadian dollars, among others.

 

This is the second revision of deposit rates by the bank on FCNR accounts after September.

 

Another public sector lender, OBC has also revised its deposit rates on FCNR accounts on one to five year maturities effective from today.

 

According to the bank, the rates have been revised by 1-12 basis points on the dollar denominated accounts.

 

Earlier, country’s largest lender—State Bank of Indi—and Central Bank of India had also revised rates effective from September.

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SAT rejects India Infoline plea against SEBI penalty

SEBI had imposed the fine on India Infoline after finding that the brokerage firm had allowed one Sunil Mehta to trade on behalf of his mother Usha Mehta without authorisation

Mumbai: The Securities Appellate Tribunal (SAT) upheld a penalty of Rs5 lakh imposed by market regulator Securities and Exchange Board of India (SEBI) on brokerage firm India Infoline in a circular trading case, reports PTI.

 

SEBI had imposed the fine on India Infoline after finding that the brokerage firm had allowed one Sunil Mehta to trade on behalf of his mother Usha Mehta without authorisation.

 

The matter came to the light after SEBI’s investigation into a suspicious rise in the share price of Asia Star Company between 10 October 2008 and 20 November 2008.

 

SEBI’s probe revealed that certain entities of one Mehta group were indulging in circular or synchronised trades to create artificial volumes in the scrip and the “kingpin of the trades” was Sunil Mehta, whose mother Usha Mehta was a client of India Infoline.

 

During the period under probe India Infoline had allowed Sunil Mehta to operate the account of his mother and engage in the transactions which resulted in share price manipulation, SEBI had found—necessitating action against the broker.

 

Following the penalty, the brokerage firm approached the tribunal against SEBI order.

 

The tribunal, however, observed in its order, dated today, that “since the appellant (India Infoline) did not comply with one of the fundamental requirements of member client relationship we hold that the appellant has failed to exercise due diligence and failed to act with integrity, care and skill as laid down in the stock brokers regulations.”

 

“So the appellant has defaulted in complying with the stock brokers’ regulations and penalty is called for,” SAT said.

 

The tribunal observed that India Infoline failed to submit to SEBI any authority letter from Usha Mehta authorising her son Sunil Mehta to trade on her behalf.

 

In a separate order last week, SEBI had imposed a penalty of Rs30 lakh on Sunil Mehta and Rs10 lakh on Usha Mehta for synchronised trading in shares of Asia Star Company.

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COMMENTS

R Balakrishnan

4 years ago

This is a prime example of how SEBI encourages white collar crime. Instead of cancelling the license of India Infoline and putting Sunil Mehta behind bars for 30 plus years, SEBI merely extracted some money. India Infoline would not mind paying this small change for getting more clients. This becomes a business plan!!
Long live SEBI! Screw the investor.

REPLY

Rakesh

In Reply to R Balakrishnan 4 years ago

absolutely

Final guidelines on GAAR by month end: Finance minister

The guidelines on GAAR will be based on the suggestions of the committee headed by tax expert Parthasarthi Shome who submitted the final report to the finance minister earlier in the day

 
New Delhi: The Income Tax department will come out with final guidelines by the end of this month on implementation of General Anti Avoidance Rules (GAAR), reports PTI quoting finance minister P Chidambaram.
 
The guidelines will be based on the suggestions of the committee headed by tax expert Parthasarthi Shome who submitted the final report to the minister earlier in the day.
 
“I expect Stage 1-finalisation of our views on the final report (by Shome Committee) to take place in the next 10 days.
 
Stage 2-the final GAAR rules would take another 10 days because that would require vetting by the ministry of law.
 
“So at the moment, I would like to complete Stage 1 and Stage 2... that would be (done) by the end of this month,” Mr Chidambaram told reporters here.
 
The ministry, Mr Chidambaram said, would first finalise its report on GAAR and then consider if there was a necessity to amend the Income Tax Act.
 
“...And the 3rd Stage if it is necessary to amend the IT Act, I am afraid it will certainly take longer because that has to go to Cabinet and the Act has to be amended,” he said.
 
The Shome Committee had in its draft report recommended postponement of the controversial tax provision by three years to 1 April 2016, and abolition of capital gains tax on transfer of securities.
 
It had suggested that GAAR provisions should not be invoked to examine the genuineness of the residency of entities in Mauritius.
 
Mr Chidambaram said the other report by the Shome Committee on indirect transfer of assets by non-resident Indians would be put up on the ministry's website for comments.
 
“As soon as I read it and my department reads it, we will put it on website, invite comments and give about 15 days for feedback and then we will examine... We will have to read it carefully. We will put in on website as early as possible,” he said.
 

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