Regulations
Vijay Mallya declared proclaimed offender under Money Laundering Act
A special court in Mumbai declared business tycoon Vijay Mallya a proclaimed offender in a money laundering case following a petition by the Enforcement Directorate or ED.
 
Under law, the court naming somebody a proclaimed offender requires the person to appear at a specified place and at a specified time in not less than 30 days from the date of publishing of the order.
 
"It's an effective step towards securing the presence of Mallya and also one more chance to Mallya to come clean before the court in next 30 days. Failing which all his properties will be attached and sold by government," said lawyer Nitin Venegaonkar, representing the ED.
 
The ED has also said that it is in touch with Interpol to release a red corner notice, similar to an international arrest warrant, against Mr Mallya, who is believed to be living in the UK.

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SEBI cautions public to deal with only SEBI registered investment advisers and research analysts
Investors are advised to check the registration status of an entity/person on the SEBI (Securities and Exchange Board of India) website before availing investment advisory services/ research services. The general public has been cautioned to deal with only SEBI registered investment advisers and research analysts for availing investment advisory services/ research services, according to a release from SEBI. The details of SEBI registered investment advisers and research analysts are available on the SEBI website www.sebi.gov.in.
 
According to SEBI, the general public should also be wary of trading in the securities markets based on the tips/recommendations provided by unregistered entity/person and should not get attracted or lured by such trading tips and stock specific recommendations received through Short Message Services (SMSs). The same caution is required for tips obtained through public media including websites or through social networking media. Informed investment decisions should be taken by investors without being influenced by messages or by misleading advertisements through websites, mass messaging, emails and telephone calls, which solicit investments and/ or promise unrealistic returns.
 
Apart from cautioning investors, SEBI has also warned unregistered advisers and analysts. No person shall act as an investment adviser or a research analyst unless he has obtained a certificate of registration from SEBI. Acting as such without registration with SEBI may entail initiation of action as deemed appropriate under the SEBI Act, 1992. The list of entities against whom orders have been passed since September 2014 is given below:
 
 

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COMMENTS

Vijay Ramachandran

1 year ago

Pls confirm for capitalheight.com
Based in Indore , I keep getting calls for trying them out. Will someone let me know please.

Nilesh KAMERKAR

1 year ago

Not a word about how SEBI intends to deal with 'Non-performing RIAs'.

Non-performing RIA may be defined as those who fail to deliver over a 5 yrs period, at least as much returns as generated by a 5 yr SBI Fixed Deposit.

Vaibhav Dhoka

1 year ago

SEBI just give cautious note but dare not to act on complaints,the truth known to regulator itself.

Many Beneficiaries of SEBI’s Forced Delisting of Companies
The Securities & Exchange Board of India (SEBI) has finally got around to announcing plans to force over 4,200 companies to delist from the bourses. These are companies whose shares have been suspended for over seven years by the two national exchanges (1,200 companies), or those which were exclusively listed on de-notified regional exchanges (3,000 companies). According to SEBI, the companies will have to offer an exit option to investors this fiscal. 
 
The exit will be at a fair value which will be determined by a third-party valuer appointed by the bourses. Promoters, who do not cooperate with the regulator or fail to provide an exit option to investors, could face the prospect of being barred from raising funds from the capital market or from taking up board positions.
 
What the SEBI chairman did not mention at the press conference where this was announced is that the MS Sahoo committee, set up under SEBI’s own whole-time director had recommended action against promoters, directors and compliance officers of 2,048 companies for failing to comply with listing agreements way back in 2010, but no action was initiated. 
 
While SEBI’s decision is laudable, everything depends on implementation. If managed well, the number of companies listed on our bourses will drop sharply from around 8,000-odd companies (as of March 2015). In all likelihood, SEBI’s plan to act on this issue has been prompted by a special leave petition filed by the Midas Touch Investors Association (MTIA) in the Supreme Court which would have come up for hearing some time soon. Let’s look at how the decision will benefit various stakeholders.
 
Retail investors have been angry about trading of several stocks being suspended for years on end for non-compliance with listing norms. Investors who have dematerialised shares end up paying demat charges every year for shares that have no market. Although SEBI says re-materialisation (conversion of electronic shares back to a paper certificate) of shares is an option, the high cost makes it a meaningless alternative. Virendra Jain, founder of MTIA, points to the plight of companies listed on regional bourses. He says, de-recognised bourses were asked submit details of companies listed exclusively on them to SEBI, but it did not initiate any follow-up action, although only 500 companies have got re-listed on the national exchanges under a SEBI plan. Further, in his reckoning, a whopping Rs58,000 crore is blocked in just 1,450 companies that have been suspended for over seven years only by the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange). On including companies listed on regional bourses that are either defunct or denotified, the amount blocked would go as high as Rs1.5 lakh crore, he says.  
 
India’s oldest bourse, the BSE has long been complaining about the onerous burden it faces due to the legacy listing of over 5,500 companies. The listing fees in these cases is a pittance compared to the responsibility of monitoring compliance with the listing agreement which has increased manifold in the past two decades. On the other hand, the NSE started operations with a selected group of companies and, even today, it has only 1,696 companies listed on it. The BSE will be a big beneficiary of the move to weed out 4,200 listed stocks and probably make it more attractive investment as it prepares to go public this year. 
 
SEBI itself has been facing flak from a Supreme Court-appointed committee for its failure to stop rampant price manipulation in little-known, penny stocks, for tax avoidance. SEBI chairman, UK Sinha, is quoted in the media as saying that this move will help the regulator “get rid of many shell companies which were being used by promoters and market operators to manipulate stocks. It will help ease the regulatory burden.” While reducing the number of listed companies will, indeed, improve regulatory oversight, it is not clear how actively traded or manipulated companies can be considered shell companies if they are fully compliant with listing norms, disclosures and fees. Neither SEBI nor the bourses show any interest in rampant price manipulation and money laundering that is routine in Indian bourses. Moneylife has been writing about one such case in each issue for the past several years. It remains to be seen how the threat of punitive action actually plays out and whether companies opt to pay investors and exit price and delist shares or comply with the rules and resume trading. 

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COMMENTS

Vaibhav Dhoka

1 year ago

SEBI should issue timetable about same and monitor same,otherwise issue will be dumped below carpet.

jaideep shirali

1 year ago

I feel that between them, the regulators seem to be destroying the very markets they are supposed to monitor. The FD market has been hit by administrative fiat, as companies that would possibly have not defaulted, were hit by an asset liability mismatch plus liquidity problems and defaulted, even when the same companies rolled over FDs in earlier years without problems. If SEBI implements this compulsory delisting, it will destroy the equity markets. Investors know that a small percentage of companies would have been hit by genuine business problems, the majority of promoters would get away by quoting valuations that possibly would not even touch the face value of the shares. It would leave investors wondering whether they should invest in equities at all, if the regulator takes the attitude of eliminating the malady, rather than finding ways to treat it. Sadly, both the debt and equity markets, which need more attention, are neglected, with attention diverted to peripheral issues. This attitude would drive investors back to deposits, an investment that lags inflation. For entrepreneurs, this would mean the so called Make in India is just a pipe dream, as they would neither find equity investors, nor the NPA scarred bankers, ready to fund their businesses.

manoharlalsharma

1 year ago

Many Beneficiaries of SEBI’s Forced Delisting of Companies/instead of d'list it should be TRADED / AUCTIONED/TAKOVERS or MERGED with powerful compnise so to protect interest of lacs of investors.

Vaibhav Dhoka

1 year ago

One does not understand why SEBI is not initiating or afraid of taking action or prosecute non complying directors.Or is regulator Hand in Glove with defaulters.

sankaran

1 year ago

In our country there are laws for each and everything.But where is the rule of law?!!

saji cherian

1 year ago

Leave alone little known companies, there are several instances of companies promoted by well regarded promoters leaving shareholders in the lurch. . For instance, AKG ACOUSTICS LTD. , promoted by Philips India Ltd., was delisted without informing the shareholders.

saji cherian

1 year ago

Leave alone little known companies, there are several instances of companies promoted by well regarded promoters leaving shareholders in the lurch. . For instance, AKG ACOUSTICS LTD. , promoted by Philips India Ltd., was delisted without informing the shareholders.

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