ASCI upholds complaints against 62 Advertisers including P&G, Snapdeal, TV 18 and Hyundai Motors
ASCI upheld 62 out of the 97 complaints received by them in December. Almost a third of the advertisements axed are from the Personal and Healthcare category, followed by Education 
 
The Consumer Complaints Council (CCC) of Advertising Standards Council of India (ASCI) upheld as many as 62 out of the 97 complaints during December 2014. Some of the companies that will now have to pull out their advertisements include Procter & Gamble Home Products Ltd (Pantene Total Damage Care Shampoo & Conditioner), Rich Feel Trichology Centre (Richfeel Anagrow), Career Launcher (CAT Coaching), TV 18 Broadcast Ltd (CNN-IBN), Hyundai Motors India Limited, Reliance Industries Ltd (Reliance Digital)  and Jasper Infotech P. Ltd (Snapdeal.com). 
 
In a pattern similar to November, most of the complaints upheld were from the Personal and Healthcare category (40 out of 62), followed by Education (11) and others such as Automobiles, News Channels and E-commerce. 
 
Some of the examples are: 
 
Procter & Gamble Home Products Ltd's advertisement for Pantene Total Damage Care Shampoo & Conditioner made an unsubstantiated claim that  3,50,00,000 women got the proof of Pantene’s Split-end protection. The only fact mentioned in the advertisement that could be substantiated from the cited survey was that there were 3,50,00,000 users in the study.
 
An advertisement for Richfeel Anagrow by Rich Feel Trichology Centre claimed that it could treat illnesses that lead to hairfall. These illnesses include thyroid, stress, PCOD and dieting.
 
The advertisement for Pillsbury Fridge Cheesecake (from General Mills India P. Ltd) referred to a healthy diet of vegetables and salads as “sada hua salad”.
  
 
 
The advertisement for The Calcutta Medical Research Institute (CK Birla Hospitals) included no disclaimers when it made the misleading claim of providing free checkups. 
 

An advertisement of Max Hospital (from Max Healthcare Institute Ltd) claimed to “save an ill heart” in just 45 minutes. No substantiating evidence or disclaimers were provided. 
 
Along with these, several advertisements for “miracle” drugs and treatments were banned by ASCI. These products make huge claims about being able to cure a wide range of diseases and ailments like diabetes (Shugreen Amrut Drops, Daibinash Churna, GM Pharmacy Range of Products, Aarogya Peeth), hairfall (Biogreen Japakusum, B-Healthy from JM Wellness Private Limited, Krissh Hair Oil from Params Pharma etc.) and impotency (Swapandoshantak Capsule and Krishna Herbal). 
 
Two advertisements from Career Launcher  - one for CAT coaching and the other for the CAT Test Series Program came under scrutiny for making unsubstantiated claims about their ranking and the number of their students who received calls from IIMs. 
 
Complaints against seven other educational institutes were upheld for making false claims about providing 100% placements or about their ranking as Number 1 Institutes. 
 
Jasper Infotech, i.e., Snapdeal.com, in one of its advertisements stated - “1+2 years of warranty valid with Videocon KC50FH (50) Full HD LED Television”, which was misleading. 
 
CNN-IBN of TV 18 Broadcast Ltd also received flak for an advertisement in which it shows a see-saw with one side showing a 'CNN-IBN' with big number 1 outweighing all other numbers on the other end of the see-saw. According to the ASCI Release, “The CCC concluded that the negative portrayal of image of other channels is misleading by implication and disparaging to other competitor channels.” 
 
Complaints against three advertisements from Hyundai Motors India Ltd were upheld – one each against Hyundai Grand i10, Hyundai Grand i20 and Hyundai Xcent. These advertisements violated The Indian Motor Vehicles Act by not showing the registration number displayed in the front of the car while being driven on the road. 
 
Another one from the automobiles category was an advertisement for Bajaj Discover (from Bajaj Auto Ltd), which shows people driving dangerously in a zig-zag manner while also cutting lanes, violating all safety and traffic regulations. 
 
Another advertisement that was axed was one for Reliance Digital, which claimed “zero down payment” without mentioning that the customer did have to pay processing fees while making the purchase. 
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SEBI Board may discuss on stricter rules for securitisation trustees
The proposal aimed at rationalising and making clear the roles and responsibilities of securitisation trustees, is likely to be discussed at SEBI's board meeting Thursday
 
Market regulator Securities and Exchange Board of India (SEBI) is planning to put in place stricter norms, including minimum net worth requirement, for trustees managing issuance of securitised debt instruments.
 
Besides, SEBI is looking to come out with a standardised term sheet for securitisation transactions that cover both public issues and private placements.
 
These proposal, aimed at rationalising and making clear the roles and responsibilities of securitisation trustees, is likely to be discussed at SEBI's board meeting Thursday, sources said.
 
Generally, securitisation refers to creating a financial instrument by pooling various debt instruments and then selling them to investors.
 
SEBI may specify a minimum net worth requirement of Rs2 crore for these trustees.
 
Further, the trustees would be required to have at least two persons and between them, they need to have a minimum experience of five years in activities related to securitisation.
 
Currently, any person registered as securitisation firm or a reconstruction company with Reserve Bank of India (RBI), NABARD, NHB can act as securitisation trustees.
 
Under the proposed norms, the trustee may call for periodic reports, supervise the implementation of conditions regarding creation of security for securitised debt instruments and take steps to ensure protection of investors as well as resolve their grievances.
 
Scheduled commercial banks and public finance institutions may be allowed to act as trustees for a securitisation transaction.
 
Besides, they may appoint a compliance officer for performing duties including monitoring compliance of the various rules and redress of investor grievances.
 
The trustees need to ensure on a continuous basis that the trust property is available and adequate at all times to pay the securitised debt instrument holders.
 
As per a code of conduct for the trustees, they are required to avoid possible conflict of interest.
 
As part of the new procedures, SEBI board would make necessary amendments to the SEBI (Public offer and Listing of Securitised Debt Instruments) Regulations.
 
Earlier in August, SEBI had issued a concept paper on securitisation transactions.
 

 

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Investor Interest   Exclusive
Helios and Matheson’s defaults and silence of regulators
Several depositors and investors are sending letters, notices to H&M for bounced cheques, while the company is reporting ‘fabulous’ financial results and obtaining ‘fancy’ ratings 
 
Chennai-based Helios and Matheson Information Technology (H&M), an unfancied software company, continues to default on repayment to its depositors and investors. After filing several complaints to market regulator Securities and Exchange Board of India (SEBI), BSE, National Stock Exchange (NSE), Ministry of Corporate Affairs as well as Enforcement Directorate (ED), the shareholders and depositors have now approached Finance Minister Arun Jaitley.
 
"Despite the proclaimed strong financials disclosed to the Stock Exchanges, the company has been, since June 2014, defaulting in the repayment of fixed deposit / interest due thereon to its depositors. This in itself is irrefutable evidence of the company fudging, manipulating its financial results disclosed to BSE and NSE, which calls for a full and thorough investigation of the situation," a letter sent by a section of H&M shareholders and depositors says.
 
Some depositors, whose cheques given by H&M bounced, are sending legal notices to the company directors. All the cheques given by H&M have bounced citing 'insufficient funds'. One of the depositors, who deposited Rs5 lakh each in three fixed deposit receipts (FDRs) was promised an interest of 12.12% per annum, which was to be paid every quarter. H&M issued interest warrants in advance of Rs15,150 each for the three FDRs to be drawn on HDFC Bank as quarterly interest. The company promised to pay the quarterly interest on 16th of March, June, September and December.
 
However, when in December 2014, the depositor submitted three cheques in HDFC Bank all three bounced citing insufficient funds. After failing to get any response from H&M and its officials, the depositor finally sent a notice under Section 138 of the Negotiable Instruments Act to the company directors.
 
Investors and depositors of H&M have also demanded investigation into ratings given and its subsequent withdrawal by CRISIL on the company. They alleged that by its shoddy rating on H&M, the SEBI registered rating agency CRISIL has seriously eroded investor confidence in its rating process.
 
In September 2014, CRISIL assigned 3/5 fundamental grade (good fundamentals) on H&M, due to steady performance of the company. However, suddenly, next month, the ratings agency, downgraded H&M to 2/5 from 3/5 citing 'moderate' fundamentals of the company. "The revision in Helios’ fundamental grade is a result of its deteriorating liquidity. Two major factors are responsible for the liquidity crisis, the company’s working capital days have increased in the last couple of quarters and it could not secure sufficient funds to honour its payment obligations on time. The company needs fresh funds to tide over the tight liquidity position. The company has been delaying the payment of principal in several public deposits matured/getting matured during FY14," CRISIL had said in its October 2014 report.
 
CRISIL in the report said, "The company has been delaying the payment of principal in several public deposits matured/getting matured during FY14. As per Section 74 of the new Companies Act 2013, the company is required to repay all the outstanding deposits from the public either by their respective maturity date or by 31 March 2015, whichever is earlier. Accordingly, we expect additional liability of Rs400 million to mature by 31 March 2015 (as public deposits due in FY15-17 would get advanced). The inability to raise funds to service the due liabilities plus upcoming liabilities are expected to further tighten Helios' liquidity going ahead."
 
According to the report from the ratings agency released in October 2014, as on third quarter of FY2014, the receivables of H&M, including debtors and unbilled, increased by Rs44.8 crore resulting in 125 days of sales outstanding (DSO) compared with 106 in second quarter in the same fiscal year. "Revenues (of H&M) increased only by Rs3 crore q-o-q in Q3FY14. This resulted in tie-up of funds in working capital leading to an elongated cash conversion cycle. The management has indicated that the receivables may remain high in the coming quarters as well," CRISIL had said. 
 
Not just common investors deposited money in H&M to earn 1% or 2% more, there are several well-educated professionals, including bankers, who have put their hard-earned money in this Chennai-based company.
 
Earlier in February 2013, Moneylife had reported on how overlooking several reports about criminal case pending against H&M's chairman and managing director, the ratings agency had assigned 5/5, its highest grading on the company. According to CRISIL report, banking, finance and insurance companies (BFSI) and healthcare segment would drive future growth of IT services in India during 2013 and, H&M would get benefits from it as the company works with seven of the 20 largest global banks.
 
Moneylife had previously reported about the bruising battle between H&M and Rajeev Sawhney, chairman of Vmoksha Technologies Pvt Ltd and a US-based non-resident Indian (NRI). The battle started in 2005 when H&M announced a $19 million buyout of Vmoksha, co-founded by Rajeev Sawhney and Pawan Kumar (former CEO of the controversial DSQ Software), with the former putting in the money and the latter running the operations. Mr Sawhney soon realised that he had been kept in the dark about many aspects of the deal. 
 
On 11 May 2005, both the companies signed a share purchase agreement under which V Ramachandran, chairman of H&M, was to pay $19 million for the three units, out of which $4 million was to be paid to Pawan Kumar, the then chief executive of Vmoksha and also former CEO of the controversial DSQ Software, as earn out. Although, Pawan Kumar and his family members were also stakeholders in Vmoksha, Mr Sawhney later bought out their stake as well. 
 
Mr Ramachandran was supposed to pay $13.4 million to Mr Sawhney, after paying some amount to Tapan Garg and Madhuri Garg, son and wife of Pawan Kumar for their holding. Mr Sawhney soon realised that he had been kept in the dark about many aspects of the deal. For instance, he found that instead of receiving $19 million, a bank account had been ‘fraudulently’ opened in the State Bank of Mauritius in Vmoksha’s name and used to borrow $13.5 million, using a fake board sanction and false entries. That money was remitted to H&M ostensibly for subscription of redeemable preference shares on 28 June 2005.  
 
Earlier in December 2011, the Supreme Court dismissed special leave petitions (SLPs) filed by H&M and Pawan Kumar, the then chief executive officer of Vmoksha Technologies. Both have challenged the Bombay High Court (HC) order, which allowed the revision application of Vmoksha’s co-founder Rajiv Sawhney against H&M. The question is when it is known to all that H&M is defaulting on repayments, why the stock exchanges, the first line of regulators and SEBI has kept quite. Why there is no action against the company and its top executives till date? Will Finance Minister Jaitley take cognisance of the complaint and make sure that the investors are at least repaid their hard earned money?
 
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COMMENTS

Rupesh Revankar

2 years ago

i am also suffering from the same. I have FD of Rs.1,50,000/- and Rs.75,000/-.

Venkataraman Ramakrishnan

3 years ago

i also suffered the same fate. i was infd. that Company had given
undertaking to Courts on repayment. Any further devpt.?

anitha

4 years ago

Please sign our petition as Helios & Matheson is not paying our full & final settlement salaries and also PF amount.

https://http://www.change.org/p/helios-matheson-managem...

Arun M Purohit

4 years ago

IN SUCH SITUATIONS PLEASE JOIN MY GROUP ON FACE BOOK , FOR MORE INFORMATIONS YOU MUST JOIN MY FACEBOOK GROUP ALONGWITH COMPLETE DETAILS i.e. MAIL ID , CELL NO. , ETC.... , I WILL SEND A LINK TO YOUR MAIL ID ENABLE YOU TO JOIN MY GROUP WHERE CAN RAISE YOUR QUERRIES / ASK A QUESTION WHICH FINALISE TO ADVISE/GUIDE IN A BETTER WAY

shrushti ajit sharma

4 years ago

MY NAME IS AJIT DINDAYAL SHARMA AND I HAVE INVESTED RS.100000/= IN helions and matheson information technology limited ON 27th NOVEMBER 2013 FOR THE PERIOD OF 36 MONTHS @ 12% AND MY MY TDR NO.IS FDB030632 AND MATURITY DATE IS 27th NOVEMBER 2016 BUT SINCE 16th FEBRUARY 2015 THE COMPANY'S MONTHLY INTEREST CHEQUES ARE RETURNED DUE TO INSUFFICIENT FUNDS YOUR PROMPT ACTION WILL BE HIGHLY APPRECIATED

THANKS AND REGARDS

AJIT DINDAYAL SHARMA
MOBILE 9004468206
9322835183
9619385823

REPLY

Arun M Purohit

In Reply to shrushti ajit sharma 4 years ago

AFTER TRYING MANY TIMES LINK IS NOT WORKING , MAY I HAVE YOUR MAIL ID ENABLE TO SEND IT

Arun M Purohit

In Reply to shrushti ajit sharma 4 years ago

http://www.facebook.com/groupinvite/ATV0Nf9psvy...

Arun M Purohit

In Reply to shrushti ajit sharma 4 years ago

https://http://www.facebook.com/groups/1660879314144812...#

FOR MORE INFORMATIONS JOIN MY ABOVE GROUP ALONGWITH COMPLETE DETAILS i.e. MAIL ID , CELL NO. , ETC.... , FB GROUP LINK IS MENTIONED ABOVE

Arun M Purohit

In Reply to shrushti ajit sharma 4 years ago

FOR MORE INFORMATIONS JOIN MY GROUP ALONGWITH COMPLETE DETAILS i.e. MAIL ID , CELL NO. , ETC.... , FB GROUP LINK IS

https://http://www.facebook.com/groups/1660879314144812...#

Arun M Purohit

In Reply to shrushti ajit sharma 4 years ago

FOR MORE INFORMATIONS JOIN MY GROUP ALONGWITH COMPLETE DETAILS i.e. MAIL ID , CELL NO. , ETC.... , FB GROUP LINK IS

EXTREMELY SORRY MY PREVIOUS LINK NOT WORKING , HENCE SENDING HEREWTITH NEW ONE

https://http://www.facebook.com/groupinvite/ATV0Nf9psvy...

Arun M Purohit

In Reply to shrushti ajit sharma 4 years ago

FOR MORE INFORMATIONS JOIN MY GROUP ALONGWITH COMPLETE DETAILS i.e. MAIL ID , CELL NO. , ETC.... , FB GROUP LINK IS

https://http://www.facebook.com/groups/1660879314144812...

Satish Bilgi

4 years ago

I too have monies due from Helios & Matheson since Jan 2015 and have more monies invested in this Company which will be due in the next 1 year. pl let me know whom I should approach to get the money back. Satishchandra Bilgi , Mumbai ( 98210 47513 ) . pl note : any help given now will save my life long savings deposited in this company post my retirement .

REPLY

Arun M Purohit

In Reply to Satish Bilgi 4 years ago

AFTER TRYING MANY TIMES LINK IS NOT WORKING , MAY I HAVE YOUR MAIL ID ENABLE TO SEND IT

Arun M Purohit

In Reply to Satish Bilgi 4 years ago

FOR MORE INFORMATIONS JOIN MY GROUP ALONGWITH COMPLETE DETAILS i.e. MAIL ID , CELL NO. , ETC.... , FB GROUP LINK IS

https://http://www.facebook.com/groupinvite/ATV0Nf9psvy...

shishir sinha

In Reply to Satish Bilgi 4 years ago

I have also deposited my life savings of 23 lacs. My husband is no more, contrary to his advise, I have gone ahead and lured by the higher interest rate of 2 % more. I also dont know what to do, anyone who is kind to help me, an old lady (75 years) please call on 7738100627 and advise remidial action that I should take.

Arun M Purohit

In Reply to shishir sinha 4 years ago

FEELING VERY SAD TO KNOW , FOR MORE INFORMATIONS YOU MUST JOIN MY FACEBOOK GROUP ALONGWITH COMPLETE DETAILS i.e. MAIL ID , CELL NO. , ETC.... , I WILL SEND A LINK TO YOUR MAIL ID ENABLE YOU TO JOIN MY GROUP WHERE CAN RAISE YOUR QUERRIES / ASK A QUESTION WHICH FINALISE TO ADVISE/GUIDE IN A BETTER WAY

Dayananda Kamath k

4 years ago

Authorities are busy in taking action on companies where there are no complaints. so if you make a complaints they will ignore it as you are asking them to do their duty. and they want to do the duty which suits them. they will initiate action only when it reaches thousands of crores, and some interested powers that be is effected. in india every regulatory action is also determined by connections for the issue.

Saumil Mehta

4 years ago

Plethico Pharma is one more such company that has defaulted. The MD draws a remuneration of 4 crores

manoharlalsharma

4 years ago

INFECTED BY POLITICS so no need of thinking as done with SAHARA or MALLYA or SHAH,as per Indian legal formalities and ethics LAW WILL TAKE IT'S own course.as we have seen at the times of last President's note in the matter of JAN-LOKPAL SENSE OF THE HOUSE.No one still understood.

R S Murthy

4 years ago

Almost 4 decades ago, that is during my early days of banking career, one elderly north indian business man (not even a graduate) advised me that, if any one pays more than the reasonable rate of interest say 9%, we have to assume and pressume that either our principal is at stake or the payer may be engaged in an unlawful trade.Several happenings are prooving that the advise is wise.
Just like fish that are lured by the bait, public are lured with high returns.Even senior and learned people are unable to control the temptation and land up in problem. There is no use of blaming any one including regulators. Blame our own weakness for being cheated or looted.

Shashibhushan Vidyadhar Gokhale

4 years ago

Moneylife Foundation is doing a great job by exposing and highlighting such frauds. Hats off to you.

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