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The state government has blocked two online trading sites, including bseindia.com, as they were frequently being used by employees and these sites are not required for government work
Maharashtra government employees can no longer browse online trading sites from state headquarters Mantralaya. The state government has blocked two financial websites bseindia.com and moneycontrol.com.
"The government has blocked two online trading sites, as they were frequently being used by employees and they are not required for government work," an official from the information technology department told PTI.
The department has installed the system that would prevent the employees from accessing these two sites and making any transactions online, the official said.
The move was initiated after receiving several complaints from senior officials that some employees spent working hours in online trading, the official said. Some employees were also found playing games on office computers, he added.
"All the departments have welcomed the move of the government to block these sites, as use of these sites was affecting working hours of Mantralaya and quality of work," the official said.
Unhappy with the decision, an employee said that it was true that some people were doing online trading but it had never affected duty.
Justifying the ban, the official said that many corporate offices have already taken the initiative to block trading, gaming, porn and social networking sites.
Indian markets ended lower due to weak global cues
The Sensex ended the day 85 points down from the previous day’s close, closing at 17,616, while the Nifty closed at 5,263, down 19 points, on the back of weak global markets.
Yesterday we had said that the bourses would be down and they remained depressed. The market may continue to be weak tomorrow. However, institutional buyers are waiting to buy on declines.
During the day, Reliance Industries Limited (RIL) rose 2% on reports of more fund-raising by the company through sale of treasury shares.
KRBL has given a purchase order to Suzlon Energy for the setting up of
an 8.1-MW wind turbine generating plant in Tamil Nadu. Both the stocks ended up in the red.
Thermax has received an order worth Rs240 crore from a leading business house for supplying four CEBC (Circulating Fluidised Bed Combustion) boilers, each of 190TPH capacity. The stock was down 1%.
Four Soft was up 5% on reports that Mondial Logistics had selected 4S eLog to automate the management of its warehouses throughout its locations in the Netherlands.
On Wednesday, finance secretary Ashok Chawla said that continuing stimulus measures were not good for the economy, arguing that “too much of stimulus can be injurious to health” and clearly hinting that a rollback of the these measures may be on the cards. However, Anand Sharma, commerce and industry minister, has reportedly urged against an immediate rollback of last year’s stimulus measures. He said that while exports were on the recovery path, a “full and sustained” recovery would happen only when demand picks up across the US, Europe and Japan.
In a move which could infuse more liquidity into the markets and make them more dynamic, the Securities and Exchange Board of India (SEBI) extended the tenure of contracts in securities lending and borrowing (SLB) to 12 months from one month. At the beginning, the tenure was for only seven days, which was later increased to 30 days.
During the day, Asia’s key benchmarks in China, South Korea, Japan, Singapore, Hong Kong, Taiwan and Indonesia fell by between 0.59%-1.9%.
As per Chinese reports, the People’s Bank of China sold 60 billion yuan ($8.78 billion) worth of three-month bills at 1.3684%, increasing the yield on such bills for the first time since August 2009, from 1.3280%.
China’s central bank said that it would pay close attention to the property market in 2010 while managing inflationary expectations.
Meanwhile, the Bank of England is likely to keep interest rates on hold at a record low of 0.5%, and maintain the quantitative easing programme at £200 billion of asset purchases.
On Wednesday, 6 January 2010, the Dow Jones Industrial Average and the S&P 500 were up 1.66 points and 0.62 points respectively, while the Nasdaq Composite was down 7.62 points.
According to US media reports, the Federal Reserve released minutes from its last meeting which indicated that some members think more stimulus measures for the economy may be desirable. It also showed that they modestly raised their GDP growth forecast upward for 2010 and 2011. They see lower core inflation in the next few years.
As per reports, ADP Employment Services data showed that the private sector lost 84,000 jobs in December. That was fewer than the 145,000 jobs lost in November, but did exceed the 73,000 expected by economists. The December ISM service index improved to 50.1 from 48.7 registered in November.
In premarket trading, the Dow was trading 24 points lower.
SEBI has again put its foot down on the trail commission issue. Will AMFI comply this time?
As the Association of Mutual Funds in India (AMFI) continues dilly-dallying for over six months on whether trail commission would continue to be paid to the old distributor even after a customer has walked away, the market regulator, Securities and Exchange Board of India (SEBI) has rapped AMFI on the knuckles asking it to implement a clear-cut decision taken more than two years ago.
On 30th December, SEBI slammed AMFI with a polite but firm email which says that AMFI must implement its own circular of 5 September 2007 along with the SEBI circular of 11th December. The December circular of SEBI clarified that distributors cannot insist on non-objection certificate (NOC) when a customer moves from one distributor to another. The SEBI email reads: “the non-insistence of NOC has to be implemented in conjunction with adhering to AMFI circular of September 2007 regarding payment of commissions. Please confirm that SEBI circular of December 11th and inter alia references to AMFI circular of Sep 20007 are fully complied with by all mutual funds.”
The 5 September 2007 AMFI circular had categorically said: “On receipt of letter from the investor advising AMCs about his desire to change his distributor, AMCs will act on the instruction. Once the distributor (ARN code) has been changed, the trail commission thereafter for all business done by the old distributor (under old ARN code) may be payable to new distributor (under new ARN code) on a prospective basis subject to terms and conditions, if any, entered into by AMCs with such distributor.”
This was a clear-cut decision and direction. Mysteriously, it never got implemented. Instead, AMFI put the matter to vote a few months ago—two years after having issued a clear-cut direction. In the process, 11 out of total 17 voted in favour of giving trail commission to the new distributor. However, AMFI did not implement this as well, which was first reported by Moneylife Digital (read it here).
In a remarkable example of cussedness, AMFI then asked for votes by email, also first reported by Moneylife Digital (read it here).
All chiefs of asset management companies got an email in the afternoon of 22nd December asking them to vote on three questions—whether the trail commission of a departing customer: a. should be paid to the old distributor; b. should be paid to the new distributor; c: should not be paid at all. Funds are supposed to vote a simple yes/no to each of these three questions.
It now appears that AMFI’s move on 22nd December came just a few hours after SEBI sent a mail to AMFI which read: “Please read the circular on the unambiguity on the payment of trail commission in case of change in distributor. However, we understand that there is lack of uniformity among AMCs in compliance with the said guidelines of AMFI. You are advised to revert to us with a confirmation on compliance with the said AMFI guidelines in the AMFI circular on September 5th 2007.”
In a remarkable example of cussedness, AMFI ignored SEBI’s clear directive and instead went in for an email vote. But eight days later, one day before the deadline of the email vote were to lapse, SEBI issued its missive to AMFI, asking it to implement the simple, logical decision taken in September 2007 that trail commssion has to go to the new distributor. The question is who benefited from the years of stalling and the cat-and-mouse game AMFI has been playing?