UTI Mutual Fund appoints four-member interim management committee

Following the selection of UK Sinha as SEBI chief, the mutual fund also appointed an executive search firm to identify a suitable candidate to head the company.

UTI Mutual Fund said it appointed a four-member interim management committee to run its day-to-day affairs and also looking for suitable candidate to head its operations.

UTI MF's chief UK Sinha has been appointed as chairman of Securities & Exchange Board of India (SEBI). Mr Sinha would replace CB Bhave as SEBI chairman.

In a release, UTI MF said, "The shareholders and the Board of Directors of UTI AMC have appointed an Executive Search Firm to identify a suitable candidate to head the Company. The Firm will look at both internal and external candidates. The process is expected to be concluded at the earliest."

The interim management committee appointed to run UTI's day-to-day affairs include Jaideep Bhattacharya, chief marketing officer, I Rahman, chief finance officer, Anoop Bhaskar, head-equity and Amandeep Chopra, head of fixed income, the asset management company said in the statement.


Rot inside SEBI: Strange warning letters to let off serious offenders

SEBI has been quietly letting off a few hundred chosen price manipulators and offenders with a simple ‘administrative warning’!

Open a newspaper and you will find lavish praises of the Securities and Exchange Board of India's (SEBI) long list of achievements and allegedly tough action against a few big corporate names. Moneylife has not been a part of this ridiculous chorus-for good reasons. We have found that SEBI has been routinely letting off a few hundred chosen price manipulators and offenders with simple 'administrative warnings', even if their actions-price manipulation, bear hammering, circular, synchronised or structured trades-have led to steep payments under the 'Consent Scheme' (without admitting or denying charges) or stiff penalties, including cancellation of registration of intermediaries, in scores of other cases.

Moneylife has access to a stack of sample 'administrative warning' letters which show that some offenders have been repeatedly let off. All SEBI letters merely say that the transactions 'give an impression' that 'they are not genuine' and ask the entities to improve systems and 'be careful in future'.
What are these administrative orders? And who is entitled to this special treatment? These administrative warnings, unlike other regulatory actions, are not reported on SEBI's website and do not have to be mentioned in offer documents and other applications.

Some orders are detailed, others seem deliberately sketchy. We asked SEBI chairman CB Bhave for the process of deciding which violations qualify for 'administrative warnings' and which ones are sent for consent or adjudication proceedings. The query was also directed to several board members and executive directors in charge of secondary markets and investigation. Despite a reminder, there has been no response. The orders have all been issued in the past three years under Mr Bhave's rule.

Consider these.
* On 15 June 2010, four brokers indulging in synchronised trades and creating artificial volumes in Godawari Power & Ispat Limited were let off. The four-OPG Securities Pvt Limited, Inventure Growth and Securities, Prashant Jayantilal Patel and HJ Securities manipulated the shares in August 2008 for a set of common clients (Deepak Desai, Dhiren Panjwani and Rhidhi Panjwani). Inventure has been let off at least thrice and there is no explanation for the leniency.

* On 15 June 2010, SEBI also let off three other firms for creating 'artificial demand' in the shares of Nandan Exim in 2006. These were Religare Securities for clients Tejas and Devan Patel who created a fake impression of liquidity in the scrip by placing large 'buy' orders below market price and updating them frequently. Inventure was also part of this racket and the third was Anand Rathi Securities.

* On 19 September 2008, repeat offenders were let off for ramping up the price of Saarc Net Limited in 2004-05. They were: Action Financial Services, Sunidhi Consultancy Services, Adolf Pinto and Pilot Credit Capital. Sunidhi Consultancy again got away with 'structured' deals in Moncon Investments through a 25 July 2008 order.

These orders suggest that SEBI's investigation, adjudication and enforcement action depends on the whims of investigation officials. SEBI does not feel that it owes the public an explanation for who is punished and who is let off.

For a more detailed report of this bizarre situation please read the next issue of Moneylife to hit the stands on 25th February.



Rajendra J Thacker

6 years ago

Nation is being ruled by looters. Criminals are law makers. Judges are selfish, dishonest and anti national. Judges do not wish to declare wealth. They want to keep them aloof Lokpal Bill provision. No need to talk abourt Public Servants of our nation.

The whole lot is rotten so such things are going to happen. I blame our judiciary system for it. Judges ar not willing to punish elected person or public servant and rich people.

Only solution is create awareness and get deserving people elected.

Nagesh KiniFCA

6 years ago

27 comments makes for an interesting reading.
SEBI, as a Regulator, has not been in any position in stemming the rot in corporate India nor has the Accounting Regulator, the Institute of Chartered Accountants of India.
What have either or both of them done on Satyam fiasco? Both are equally responsible for glossing it over for 7 long years.
US legal system has heavily penalised Satyam auditors, our system is still dragging its feet? Why?
SEBI lets corporates like ADAG go with peanuts as "settlements" when the Directors ought to sent behind bars.
The Supreme Court has rightly commented that position and wealth will be disregarded in the 2G spectrum.
The need of the hour are proactive Regulators for the Corporate India and Accounting profession to pursue penal action more vigorously.


6 years ago

May be, Mr.Bhave and his team were doing unpopular activities viz., harassing the genuine investors and the Distributors, just to distract public attention from their unetical practices in dealing with the erring companies and other agencies. The Finance Ministry should appoint a commission of inquiry without much delay, to investigate SEBIs actions/decissions during Bhave's tenure. There may be many skeletons in SEBI's cupboard which may endup with another scam. Present Chairman should initiate necessay steps and screen all mis- deeds of the previous regime.



In Reply to nagaraj 6 years ago

inventure growth is big fraud they cheat and harras people they buy judges all setting is done

Aangelo Extross

6 years ago

Moneylife, please do not give up! Place before the new Chairman the querries and reminders which were put to his predecessor and Board Members and demand a time-bound reply. If it is not forthcoming use the RTI Tool.
Let's look at it from another angle - the sorry episode of the Harshad Mehta Scam (early 1990's), meticulously tracked by Ms Sucheta Dalal, led to far reaching reforms in the Stock Market and the birth of modern electronic trading platforms and share depositories. Hope a similar silver lining appears on the horizon.

nagesh kini

6 years ago

I beg to differ with Pandarinath Prabhu.
Sucheta and Debashish are better off with their own Moneylife with no constraints and restraints shackels on expressly their views freely and frankly.
Please read Khushwant Singh's autobiography to know newspaper owners drop editors like him, MV Kamath and Arun Shourie.
Ramnath goenka was no different.
The Times group and ET have lost their credibility. There are more ads.paid for edits than articles.
I've switched over to Free Press Journal and Hindu Business line who have more readable content.I'd advise others to try this out and let me know of their experience.


Ravindra Shetye

In Reply to nagesh kini 6 years ago

I agree with Mr. Kini 110%. The sole objective of Times of India and Economic Times is to milk the advertising market and mint money. You can see the increasing weight of the newspaper (Jairam Ramesh to note the Environmental damage). The same is true about most of the Media Channels. The weight and the number of pages of ToI has tripled within last 10 years, the Contents remaining the same. And like the very old rule, the bad coins drive the good coins out of circulation.
I will also stop ToI and start Free Press from next month.

Ravindra Shetye

6 years ago

This should be the first riority for Mr. Sinha. A lot of ready data is already available if he can just read last 25 issues of Moneylife.
Maybe it is a good idea if you can send him these 25 issues as a present. If not please send the bill of the price of these 25 issues to me. I mean to be serious.


Rajendra J Thacker

In Reply to Ravindra Shetye 6 years ago

One should not expect milk from bulls. Any IAS, IPS, IFS and elected represented belongs to same class. Today even judiciary is also part and parcel of it.

Only one solution to all problems that is being faced by citizens is that one among us should have power to decide. This is possible only if all active citizens become politically active and see that none of the old political party or its candidate wins. One among us should be elected and all of us will have to create awareness about it during election.

I do not find any other solution to presents problems being faced by us.

pandharinath prabhu

6 years ago

Ms. Dalal , you need bigger platform to bring to the notice of the people such cases. please move back to Times of india . Now you can think of going to ET Now , people like you are needed over there then only people will take a note of such frauds


6 years ago


Rajan Manchanda

6 years ago

For SEBI to be effective ,discretionary powers should be abolished. For every lapse a penalty should be leived depending on the gravity of the fraud / crime / misconduct. This will ensure the investors are kept well informed. It will act as a detterent for the fraudsters as the misdeeds will get reported. Administrative warnings are like telling tales of Gabbar Singh to small children.

For all departments to function effectively,it appears they must report directly to the Supreme Court !
Multiple agencies like CBI are required for handling all frauds reporting to Supreme Court as that seems to be the only way some timely action will be acheived.

sk gupta

6 years ago

Good Information.


6 years ago

SEBI is on UPA govt. pat. There is no surprise.


6 years ago

SEBI does nothing. Examine the listing day price manipulation of IPOs. Artificial volumes are created to defraud the gullible investors. The classic example is Bedmutha. No action has been taken against any one. Long live SEBI!


6 years ago

The moot question is who regulates the regulator?
How do we monitor the acts of omission and commission of the regulator in a civil society?
In UPA regime we have a spate of regulators - Telecom, Pension, Insurance, and now we have a Council on top of financial services.
But what we now need are a set of guiding principles and values by which the regulator's action (or lack of it) could be judged.

BTW, what are your views on UTI chief (so far the regulated entity) being appointed the SEBI chief (the regulator)? Strange quirk of fate or something else?

Rajendra J Thacker

6 years ago

Good information. No body has fear of doing wrong. Judicicary is defunct and thus such instances.

Wrongdoers have confidence that any wrong action will not be punished and is rewarded economically.

Decision makers on complaints have become partners of economic profit made by wrongdoers. It is an opportunity for regulating authority to become economically well.

Crux of all such problem that our Nation face is due to defunct Judiciary.

All doors of justice are closed. Close nexus between People's representatives, Public servants and Judges.

Let us be a part of Governance by being active in politics.

makarand patankar

6 years ago

what else can we expect from sebi which is part and parcel of thugery.

prime minister who is supposed to be fellow of LSE, equates telecom loot with subsidies offered to poorest, sebi ar anybody cant do anything different.

Indian Budget 2011-12: FMCGs seek reduction of input prices, streamlining of taxes

The profit margins of the fast moving consumer goods sector have been affected by spiralling input costs recently. These businesses have also been bothered by inconsistent taxation and excise duties

The Union Budget this year is not expected to have anything worthwhile for the market. Already expectations in most sectors are low. For, after a dismal year dominated by high inflation and corruption, there's a lot that the government will have to straighten out.

One of the sectors that have been hit hard by spiralling costs is the fast-moving consumer goods business. But the fourth largest sector in the country by market size has a modest wish list for the finance minister that includes a reduction in the food prices and a viable more simple tax structure.

According to financial brokerage Sharekhan, high food inflation and surging inpurt costs are likely to affect the growth of the Rs130,000-crore business sector in the near term.  

"The FMCG sector would expect growth in the coming year, in volume terms," said Milind Sarwate, chief of finance, HR and strategy, Marico Limited. "Chronic inflation will hurt India's growth potential. In addition, if the inflation is because of abnormal or undesirable factors like greedy intermediaries, or avoidable supply-chain bottlenecks, the government should act in time."

Input costs have spiralled due to a hike in prices of vegetable oils and other agri-products. Increasing ad-spends have also deflated margins. In the last quarter, FMCG giant Hindustan Unilever performed poorly despite its aggression and some other prominent names like Dabur, Marico, Emami and GCPL recorded only marginal profits.

While consumption levels and consequently sales for these businesses has gone up, profit margins have suffered. As a result, all these companies have undertaken price hikes. Now there's anxiety over the volumes. Recently, tensions in the Middle East and the North African (MENA) region have compounded the worries for some Indian FMCGs that have acquired units in this growing market in the past couple of years.

Taxes is another important area where the consumer goods sector is also seeking a change through the implementation of the Direct Taxes Code (DTC) and Goods and Services Tax (GST). The inconsistent rates, particularly for excise duties, have been a bother for producers in different parts of the country and companies are hoping that the new codes will streamline taxes and duties are merged with GST.

Adi Godrej, head of the Godrej group, estimates that the implementation of GST and DTC will result in a 10% growth for the sector. He also says, "All surcharges on income-tax should be dropped. The minimum alternate tax and dividend distribution tax rate must be reduced to 10%-12%. Lower rates of taxes will lead to stronger GDP growth rates which in turn would lead to increased tax collections."

But there is a catch in the implementation of GST as some daily-use products like edible oils are not in the excise duty list and hence get concessional VAT in many states. The application of GST in this case will increase the cost of these products and inconvenience customers.

The FMCG sector has been looking more closely at the rural market to expand its business. "Most of India's GDP growth now comes from the urban areas and it is important to de-bottleneck that part," says Mr Sarwate of Marico.

Last year there were ugly spats between big brands like Cadbury and Anchor Foods over copyright infringement. Strengthening the regime on intellectual property rights will help avoid such unnecessary irritations.


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