Wholesale onion prices ease by Rs3 in Delhi

New Delhi: Wholesale prices of onion today declined by Rs3 to Rs40 per kg in Delhi due to increased arrival from key growing states, reports PTI.

“Arrival of onions are increasing from Maharashtra, Gujarat, Madhya Pradesh and Rajasthan. As a result, prices have come down by Rs3 per kg from yesterday's level,” general secretary of Tomato and Onion Merchant Association (based in Delhi’s Azadpur mandi) Rajendra Sharma told PTI.

Arrivals today were over 1,100 tonnes with maximum stock coming from Maharashtra and Gujarat.

Mr Sharma said the impact on retail prices would be seen in the next 2-3 days.

The retail prices of onion had touched a peak of Rs70-Rs85 per kg on 22 December 2010 due to sluggish supply in the wake of crop damage due to unseasonal rains.

Yesterday, retail onion prices also eased by Rs5-Rs10 a kg in major metros following raids on traders by income tax authorities in Uttar Pradesh, Tamil Nadu, Punjab, Haryana and Jammu and Kashmir.


SEBI worried about cosy ties between MFs and rating agencies

Mumbai: Capital markets regulator Securities and Exchange Board of India (SEBI) on Friday cautioned against the “increasing incestuous relationship” that mutual fund (MF) players are developing with their rating agencies and called for maintaining an “arms-length relationship” with these agencies in larger interest.

“What worries me is the increasing incestuous relationship between the mutual fund players and their rating agencies. The MF industry has to evolve a policy to maintain am arms-length relationship with fund rating agencies,” SEBI executive director KN Vaidyanathan told reporters here.

“The fund rating as we see today are more relationship-based and not driven by the fundamentals of the product,” Mr Vaidyanathan, who looks after mutual funds at SEBI, said while addressing the India Investment Conference organised by the Chartered Financial Analyst (CFA) Institute and the Indian Institute of Securities Markets here.

“The least the industry can do is not to get their funds and rated corporate papers rated by the same agency,” he said and added that it is time that the industry came together and raised the bar for themselves.

He also urged fund managers to worry more about the NAV (net asset value) of their equity traded products and not their margins alone. “The excessive dependence on the window-dressing by the fund managers should end,” he said.

Pointing out that fund managers are increasingly doing more of self-serving functions, he said without properly protecting NAV, a fund manager cannot carry out his fiduciary functions properly and effectively.

Later speaking on the sidelines, he said SEBI prefers the entire industry follow “a brain-dead benchmark” like the Nifty or Sensex which some fund houses are already using. “I think seven or eight funds are already using the Nifty or the Sensex as a consistent benchmark, and we think this is a good thing. We hope the competitive pressure will drive everybody to adopt the idea.”

On whether there will be more regulations on the MF front, he said in time, the entire MF industry will be regulated by SEBI.

On the product regulation front, he said first the watchdog is trying to see if it can get some standardisation on the product before going into the selling side. “We are working on product labelling simplification and then (will) try to bring down the variables where there can be mis-selling. I think we are halfway there.”

He went on to add that, “what is a matter of concern to us is whether investors’ interest is being very badly compromised because of the skewed nature of incentive to the seller, the manufacturer or the relationship manager. It’s not specific to an individual product. If you were to get into mis-selling, you need to understand the incentive structure.”

When pointed out that the industry has of late been bleeding as it entered the new regulatory environment, he said, “I am satisfied that the changes have been accepted.

The industry has done an outstanding job in adapting to the new regulatory environment.”

He also said SEBI is satisfied that MF houses are consciously investing time, energy and resources in training sales force, in bringing distributors and are putting in place a technology framework that can help scale the business through the stock exchange platform. The results will happen with time.

“I think over the next one or two years, as savings increase, I believe that the MF industry will be very well- positioned in getting a larger allocation of savings,” he said.

He further explained that one should look at three numbers when it comes to MF performance—the NFO (new fund offer) inflows, existing scheme inflows and outflows.

Outflow is a function of multiple factors. That is not driven exclusively by the AMC or even the distributor. NFO is something SEBI does not want unless there is a good reason. In so far as inflows into existing schemes are concerned it has gone up from Rs4,000 crore to Rs5,500 crore per month, he explained.

“The decreasing number of portfolios is a wrong way of looking at it. The right way to look at it is the number of unique customers and our data says that there has been no change in that,” he concluded.


Will Rose Valley’s clones, flourishing with CPM’s help, come under the lens now?

SEBI has stopped Rose Valley from accepting deposits, but it is just one of the several dubious conglomerates flourishing in the communist-ruled states of West Bengal and Tripura, thanks to a combination of financial illiteracy and political protection

It was more ubiquitous than Coca-Cola and Pepsi and could almost vie with the ruling party's logo. Over the past five years, if you looked at hoardings and watched TV channels, you could not have spent more than a few minutes without coming across the name Rose Valley. As sponsors of prime time news, at every major event and finally as the promoter of a brand new channel, Rose Valley was in your face. Now it has got into the national media for the wrong reasons. Suddenly this week, the market regulator Securities and Exchange Board of India (SEBI) clamped down on Rose Valley Real Estates and Construction Limited for raising funds from the public, without a registration certificate for 'collective investment schemes'.

But Rose Valley is just one. In the last couple of years, West Bengal has seen the emergence of quite a few chain-marketing companies and homegrown business conglomerates. Amazingly, these groups are all Bengali-owned, but they're hardly an example of Bengali entrepreneurship of any kind.

Among them, Rose Valley, Icore Group MPS Group and Saradha group are the most visible. They are all about a decade old and claim to be highly diversified conglomerates today. Collectively, chain-marketing schemes are whispered to have raised over Rs10,000 crores, mostly from lower-middle class people in West Bengal and Tripura, both communist-ruled states. With that money they have bought media space and acquired legitimacy. Rose Valley has been a big advertiser with Ananda Bazar Patrika (ABP) group. ABP has gone out of its way to promote them and celebrate their "entrepreneurship".

MPS Greenery Developers Limited, the flagship company of the MPS group, is based in Jhargram, and deals in agro-products and food processing. Rose Valley started as some kind of insurance and small-savings scheme, but it has now expanded into a long list of sectors such as hotels (Hotel Rose Valley), foods (Taste Me), amusement parks (at Agartala and Kolkata), resorts, media (Ruposhi Bangla, a Bengali entertainment channel, and News Time, a news channel) and garments (RV Fashions). Rose Valley's representatives claim that the company has 10,000 acres of land all over India, 14 regional offices, 500 branch offices, 5,000 employees, and so on. Rose Valley claims it is setting up many housing projects, hotels and hospitals. But its website is down since SEBI clamped down on its schemes.

Nobody knew exactly where the money was coming from for these companies, but everybody suspected that it was some kind of a pyramid marketing scheme, made infamous 30 years ago by the failed Sanchaita Investments. SEBI says, Rose Valley does not have the required registration and appears to be raising funds through collective investment scheme(CIS), by collecting money from people on the promise of land. As the SEBI order points out, Rose Valley's application was rejected in 2003, and the company was unable to produce the required documents about deals with customers.

The CID and state finance department officials had once raided Rose Valley's office in Tripura, but to everyone's surprise no arrests were made. Many people have attributed the outcome to the group's soy relations with the Left Front.

In internet complaints forums, many people have raised questions about the company's credibility and asked for financial details, which its representatives have ignored. Interestingly, one of the agents claimed that Rose Valley has all the required certificates, including a SEBI registration.

Under its 'Ashirvad' scheme, Rose Valley mobilised Rs1,207 crore by selling 508,792 plots, but handed over only 9,045 plots. While the company claims to have a land bank in several upcoming and industrial areas of West Bengal,  the question is, how did they get access to all those vast stretches of land that are traditionally used for agriculture?

As Moneylife has reported earlier, Rose Valley Chain Marketing System Ltd, which is a corporate agent for LIC since 2002, has openly violated rules of the Insurance Regulatory and Development Authority. As for the company's insurance business, there is no answer to the question about who will be responsible to the investors if the company collapses. Their media connections have ensured that no details are leaked out about their goings-on. Rose Valley group is not rated by a credit rating agency either.

Let's look at the other 'big' company, MPS (Multi Purpose Scheme - the name is self explanatory). MPS's website features praises by several Left Front ministers for its Jhargram-based fisheries/hatcheries/piggery, etc. Among these government figures are land and land reforms minister Abdul Rezzak Mollah, environment minister Shailen Sarkar and food and civil supplies minister Paresh Adhikari. It also lists a number of certificates, some of them ISO certificates.
What it does not list is a SEBI certificate for any collective investment scheme. According to SEBI, the application of MPS Greenery Developers Private Limited was rejected in 2003 (simultaneously with that of Rose Valley) and a wind-up order was issued. As is apparent from their flourishing business and their 'impressive work in Jhargram' (courtesy Mr Mollah), they have carried on pretty well despite these hurdles. So here is a huge company, collecting money without SEBI registration, which the Left Front government is endorsing. The MPS project and plantation in Jhargram did not make any headlines, but the importance of the location cannot be overlooked. It is in the very heart of a Maoist-controlled stretch in West Bengal and adivasis claim it as their inheritance.

Now, the Icore group, whose source of funds is a mystery to onlookers, as is its meteoric rise. It has declared that it will invest Rs5,000 crore in a steel plant and a cement unit in Orissa. Even insiders are clueless about the source of the cash. Its website lists garments and jewellery, cement, e-services and steel as its businesses. Nobody is certain about the real status of these businesses. The key question that remains is where does the money come from?

The same goes for Rose Valley, whose resorts have bookings, but it's nothing phenomenal. And the media business is certainly losing money. Prayas, a newcomer in this area, is becoming increasingly prominent, with equally dubious resources.

Finally, there is the Saradha group, which is not seen to be a collective investment scheme but has seen a meteoric rise over the past decade. In just 12 years it has got into sectors such as cement, chemicals, wires and cables, snacks, wool and carpets. The group also owns The Bengal Post and Sokalbela, two news dailies, and a news channel called Channel 10. What is not so well known is that the owners were once booked for selling used disposable syringes and medicines past the expiry date.

The West Bengal government has tried to attract investments from large and reputed companies, but the only thing that has flourished in the state is a peculiar brand of pyramid schemes and real estate schemes backed by state power. These groups have also rapidly 'diversified' their businesses, even entering media, to acquire legitimacy. It would be interesting to see whether they can also cosy up to Mamata Banerjee if and when she comes to power.



Dipak Kumar Adhikari

3 years ago

The Incharge of the Department Date:03/01/2014

Respected Sir/Madam,

Sub.:- Policy payment related information case reply me as soon as possible.

I have a policy and also my mother have one in your company. My application No: 061125583. Application Date: 25/11/2008 Credit Date:25/11/2013. And my mother application No: 064786245. Application Date: 11/12/2008 Credit Date:11/12/2013. BARASAT R.O.
All two MCode: 063076792 (My agent name is: Anup Kundu). Our two policy maturity date over but we do not received our credit value.

So please informed me about it - are you send me any cheque or where I received this cheque or where I informed about this case????. I wait for your kind response reply me as soon as possible.

Thanks with kind regards,
Dipak Kumar Adhikari.
S/O:- Late Biswanath Adhikari


My Mother: Shibani Adhikari (Biswanath Adhikari)
W/O:- Late Biswanath Adhikari.

Tegharia, Dhali Para, Nandan Kanan.
P.O.:- Hatiara, P.S.:- Baguiati, Kolkata-700157/700059, Dist.:- North 24 Parganas, West Bengal, India.
Phone No: 9874389190. Email: [email protected]


4 years ago

Sunrise medicorp Solution Pvt Ltd is now business investment Plan guaranteed Income .


5 years ago

thanks again,only we can raised quiestion but we know well there is no ans,it is the big play?the ministers,political leaders all r involved in this big game.but who will be the losser? only the lower middle class because there is no option to earnings.poor become poorer,and who will die? the agent.

vijay kumar

5 years ago

pla povied a branch in dibai bulandshahr (u.p)

pranjal pal

6 years ago

i would like to know the details of saradha group. Is there any relation between Mr. Sudipto Sen, CMD of Saradha Group with Sanchaita Investments ? And in SEBI website CIS Schemes : MPS is showing Provisional, means what ?

prince sobka

6 years ago

sir,thanks for all the details which could light a lot of people and concious them in their future investment . what documents to see from the agents before there investme it also need to be clear in next comment.and must alert about fake investment , next my question is if govt knows all about so they do not take action against this fraud

amit kumar roy

6 years ago

if rose valley company continue their business after 2003. so sebi that time was sleeping

supriya banerjee

6 years ago

see about mps in sebi web site register cis company..


6 years ago

is rose valley collecting money from market with out SEBI's required registration after 7th jan.2011?

seth moloy

6 years ago

As mentioned in the articale that all these Chain Mkt. Co. working in W.Bengal from over a decade, i.e. 2 assemble elections have passed. but only they come under SEBI's lens this time before "parivartaner hawa"! No one have been chited by those companies in last 2 decades(atleast no news). But they have given employment to lacks of people & dependent by pyramid carrier structure. No govt. central or state able to create so many employment in a decade. In the otherhand SEBI, who's main duty is to protect the invester in share market, failed to do so. Middle class people attracted by share mkt and loosing there last peny. Don't forget, Mr. R. Gupta, eastern regional asst. gen. manager of SEBI was arrested by CBI, last year when he was taking brave from the chairman of one chain mkt. group. Is it a revenge taken by SEBI! God knows. We are hopefull that all these co. should return all the money collected from us. If govt. shutdown those co. who will refund us the money. "Parivartan"(the change) does not mean, we the lower middle class will lose our last pany.

sanjoy chatterjee

6 years ago

can it be possible without help of the rulling party the so called groups cullecting money and fraud the general and poor people.day after day ?the state government take no action, what is the story behind it.

naru deb

6 years ago

CIS is the main business of company once stoped collection from market company can,t discharge payment liability

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