PACL investors to take out morcha to SEBI next month to submit claims
Around one lakh investors are set to take out a morcha to SEBI office in Mumbai for handing out claims, says All India PACL (Pearls) Investors Association
 
All India PACL (Pearls) Investors Association (AIPIA) has decided to take out a massive morcha of around one lakh investors to market regulator Securities and Exchange Board of India (SEBI) and hand out claims of investors to the market regulator.
 
In a release, Vishwas Utagi, Convener of AIPIA, said, "We want SEBI to create an infrastructure in all the cities and districts in India to receive such claims or complaints with a view to refund the money of claimants and investors."
 
The Association is also requesting investors to submit filled forms for claims at its offices. Here is the address of its Mumbai office... 
All India PACL (Pearls) Investors Association 
C/O Maharashtra State Bank Employees Federation, 
Dadyseth House, 1st Floor, (Rear), Nanabhai Lane, 
Fort, Mumbai- 400 023
 
PACL (earlier Pearls) is a Delhi-based company, proclaiming itself as a real estate company which has collected huge money for the last 13 years from almost six crore people from all the states in India. "Out of six crore investors in the country more than one crore are from Maharashtra! What is shocking is that on one side, poor peasantry is committing suicide in Vidharbha and Marathwada and on other side, the situation is that poor and middle class people in this area have lost money in PACL. Their number is about five lakh in Marathwada alone," Mr Utagi added. 
 
On 15th December, the Association has organised a full day meeting of investors duped by PACL. During the meeting it was decided to ask SEBI to take control of all bank accounts, properties, assets of PACL and refund depositors' money. 
 
Earlier, SEBI, as part of its recovery proceedings, attached all bank and demat accounts, mutual fund portfolios of PACL and it eight directors and promoters. In a release, SEBI said, the recovery proceedings have been initiated for their failure to comply with its order issued on 22 August 2014 directing, PACL and its directors and promoters to wind up the schemes, and refund Rs49,100 crore to the investors within three months from the date of the order. This amount is excluding further interest and all costs, charges and expenses incurred in the recovery proceedings.
 
According to SEBI, the amount due to investors of PACL would be over Rs55,000 crore. This  includes promised returns, further interest, all costs, charges and expenses incurred in respect of all the proceedings taken for recovery of Rs49,100 crore from PACL. 
 
 The mobilisation of funds by PACL traces back prior to 1997. Upon receipt of a complaint, SEBI on 30 November 1999 and 10 December 1999 issued letters asking PACL to comply with the provisions of the collective investment scheme (CIS) Regulations. 
 
PACL challenged these letters before the High Court of Rajasthan in December 1999, claiming that its scheme does not fall under the definition of CIS as defined under the CIS Regulation and SEBI Act. PACL also challenged the constitutional validity of the CIS Regulations. 
 
The Rajasthan High Court on 28 November 2003, held that PACL's schemes were not CIS as defined under Section 11AA of the SEBI Act. The HC also quashed SEBI's letters issued to PACL. 
 
SEBI filed an appeal before the Supreme Court against the order of Rajasthan HC. The SC on 25 February 2013, while allowing the appeal upheld the constitutional validity of CIS Regulations, and directed SEBI to investigate the matter and take appropriate actions. 
 
After conducting an inquiry, SEBI on 22 August 2014, issued an order directing PACL, its promoters and directors to wind up all the existing CIS and refund the monies collected by the company to investors as per the terms of offer within a period of three months from the date of the Order. 
 
PACL filed an appeal before the Securities Appellate Tribunal (SAT), which was dismissed on 12 August 2015. The SAT directed PACL and its promoters-directors to refund the money within three months. Since the company and its promoters-directors failed to refund the money to the investors as per the directions of SEBI and SAT, the market regulator said it has initiated the recovery proceedings.
 

 

  • User

    COMMENTS

    Abhimanu Dixit

    9 months ago

    I have lost my policy bond paper please help me

    KAILASH KUMAR

    10 months ago

    aplication form

    REPLY

    KAILASH KUMAR

    In Reply to KAILASH KUMAR 10 months ago

    site kaise khulta

    Rockey Sanjay Gouda

    2 years ago

    I was submitted my name and reg no and amount yesterday that was went wrong and acnolagmment message was not came and 2day I was trying to submitted my name and reg no and amount in throw sms that was not coming plz tell what should do now plz return

    chaudhary vikash1234

    2 years ago

    Application form

    Dev Raj

    2 years ago

    IK BHI APPLICATOIN Submit NAHI HOTA

    Dev Raj

    2 years ago

    MERE IK BHI application NAHI HOTE HAI

    krishna kashetty

    2 years ago

    its are hard earned money please hand over our money there is no news from any where about the case or refund the investors amount

    suresh buddagalla

    2 years ago

    Sir plz repayments or january apply meeseva

    Faujdar Ojha

    4 years ago

    Sir/madam
    I am a normal citizen and hence I was having a very little sum of money present at that time when I invested in PACL
    On 3 August 2009 by the mean of agent. At that time when I invested in the bond I was thinking of some interest, but now I am not hoping so as the PACL is under CBI probe.
    I was told that my bond is maturing in 2019 but right now I need my money urgently due to some family reasons and right now they are ignoring me.
    I humbly request you to do something that they return my money with suitable interest.
    Thanking you
    Faujdar ojha, 9311452004

    sarang

    4 years ago

    how to submit the claim

    Rahul Singh

    4 years ago

    we can submit claim from only after maturity or without maturity also .

    and also request you to share Client form formate

    Sreepathid

    4 years ago

    when SEBI filed a case in supreme court?

    Nilesh KAMERKAR

    4 years ago

    Morcha will come & go.

    However, If you really want to curb Ponzi schemes, then apply mutual funds sales and distribution norms.

    For e.g. Agents mobilisation commission must be restricted to 0.84% or less.



    How to make the Sovereign Gold Bond scheme a roaring success?
    The best way to handle this bond scheme is to ask authorised banks to open a Sovereign Gold account and issue a simple pass book to the investor showing the quantum of gold to his or her credit on the lines of an ordinary savings bank account
     
    The Sovereign Gold Bond (SGB) scheme was launched by the Central Government with great fanfare with the expectation that people will rush to buy them because of the additional benefit of interest @2.75 pa paid on the invested amount. The first tranche of the SGB scheme was open for subscription between 5 November 2015 and 20 November 2015. During these 15 days, the scheme could get a total of 63,000 applications for 917 kgs of gold amounting to Rs246 crore and the government hailed it as an excellent response for an innovative product. 
     
    If you analyse the scheme in its entirety, it is nothing but a speculative investment in the name of gold with a small interest benefit thrown in. You were required to invest a minimum of Rs5,368 towards two grams of gold at a pre-determined gold rate (at Rs2,684 per gram) and get back the amount anytime between five and eight years at the rate of gold prevailing on the date of redemption. The scheme did not provide for getting physical gold on maturity, and you can get the equivalent amount only in rupees.   
     
    SGB was touted as the best option to take exposure to gold, but in reality there is no option at all to get gold and at the end of the period the buyer of the bond may gain if the price of gold is higher or may lose if the gold price is lower than the price paid by the investor.  And nobody can predict with any certainty what will be the price of gold at the end of five or eight years from now. Therefore, in short it was pure and simple speculation, which, unfortunately did not go well with investors.
     
    Why the Scheme did not get the response it deserved?
    People invest in physical gold not out of love for hoarding gold, not for earning income out of gold investment, not for earning capital gains by selling it when the price of gold rises and certainly not for speculation, but only for two specific reasons., which are peculiar to Indian psyche.  
    The first reason is to serve as a protection against life’s uncertainties, because, during emergencies, gold is the only commodity that gets you instant cash without question and without any degree of fear or favour. 
     
    The second reason is the social obsession of having to grace your children with gold ornaments during their marriage and buying gold bit by bit helps you to accumulate gold over a period of time to meet this social necessity, which is a sine qua non for almost every family in this country. 
    The basic human instinct of saving for a rainy day through the medium of gold is lost sight of by the architects of this Sovereign Gold scheme.
    How to make it a roaring success?
     
    There are several drawbacks as mentioned below in the present scheme which requires to be radically modified to make it attractive for the common people to invest in this scheme. 
      
    (a) One of the reasons for the poor response is the fall in gold prices during the period when the scheme was open for subscription. On 30th October, a week before the opening of the issue, the government announced the face value of the gold bond at Rs2,684 per gram for the entire period of 15 days when the issue was open for subscription.  But when the issue opened on 5th November, the price of gold had fallen to Rs2,580 per gram and by Friday, the 20th November, when the issue closed, the price had fallen further to Rs.2548 per gram, which is almost 5% lower than the price fixed for the gold bond. Thus by subscribing to the bond at the higher price,   one would have virtually lost the benefit of interest for the next two years. The solution is to announce the gold rate on a daily basis every day when the issue is open, so that the benefit of a fall in gold price, if any, during the issue period is passed on to the investor.
       
    (b) At present, the interest of 2.75% p.a. paid on the bond is subject to income tax. This is the biggest disincentive for people to invest in these bonds. Since the redemption price of these bonds is uncertain, it is necessary to exempt from income tax the interest earned on these bonds, and this will encourage more and more small investors to invest in these bonds.
     
    (c) As per the terms of the scheme, the sovereign bond is redeemed only in Indian rupees, and this is not what is desired by most of the investors. They invest in these bonds mainly with the purpose of getting gold in physical form when they need it for children’s marriage etc. at a future date without any hassles. Therefore, there is a need to give the bond holder the option of redeeming the bond through physical gold or in equivalent rupees, at the choice of the investor.
     
    (d) The most irksome part of the scheme is that when you redeem these bonds, the proceeds are subject to capital gains tax, if the redemption price is higher than the price paid by you at the time of investment. The best solution is to provide exemption from capital gains tax, if the investors opt to redeem the bond through physical gold, in which case, the question of paying capital gains tax should not arise. 
     
    (e) The bonds in its present form are available to public only during the stipulated period fixed by the government without any concern for investor convenience. And the first tranche of these bonds were sold only for 15 days during November, 2015. There is a need to make this investment avenue available on tap to get maximum support from the general public.  
     
    (f) Apart from these draw backs, the Sovereign gold bonds are issued in paper form or certificates issued by the RBI mentioning the quantum (in grams) of gold purchased by the investor. The fact that the RBI had to defer the date of issue of bonds by a few days indicate that the paper work took a toll on RBI, which undertook issuing of these bonds in paper form, which was totally avoidable. 
     
    The best way to handle the gold scheme is through Authorised Banks:
    The best way to handle this bond scheme is to ask authorised banks to open a Sovereign Gold account and issue a simple pass book to the investor showing the quantum of gold to his or her credit on the lines of an ordinary savings bank account. This method has the following advantages:
     
    (a) The investors can purchase gold at their convenience if the scheme is kept open for sale on tap at the specified bank branches, with RBI announcing the daily rate at which banks can accept the deposit from public. The equivalent gold when purchased can be entered in the passbook as a record of balance held in the gold account of depositor.
     
    (b) In order to provide flexibility for the depositor, the banks can continue to accept deposits in tranche of one gram of gold and thus allow the gold account to grow over a period of time into a larger corpus for redemption at a future date. 
     
    (c) The authorised banks can further innovate and provide different gold deposit schemes like Sovereign Gold account scheme, Gold Recurring deposit scheme, Gold fixed deposit scheme etc. with varying rates of interest and with different modes of payment and redemption as existing in variable deposit schemes. This will provide variety, flexibility and varying degree of suitability to the discerning investors in gold. 
     
    (d) And in all these type of gold accounts, the choice of redemption in physical gold, after the stipulated period, should rest with the investor so that h/she has the option to get gold in its purest form from the trusted source, without any questions being asked. 
     
    (e) Since most of the banks today sell gold coins, it is easy and simple for such banks to hand over gold coins of specified grams of gold as and when depositors want to redeem their gold deposits, thus serving the needs of depositors with great aplomb. 
     
    (f) If the gold accounts with passbook system is introduced, it will be the easiest way to handle gold deposit accounts, without the rigmarole of issuing duplicate certificates, if and when lost, and it will the simplest and most convenient form of investing in gold and getting physical gold when they need to the satisfaction of all the stakeholders. 
     
    This is, therefore, a suggestion to make it simple, flexible and convenient and most importantly what the investor wants, to ensure its roaring success. 
     
    (The author is a financial analyst, writing for Moneylife under the pen-name ‘Gurpur’) 
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    User

    COMMENTS

    Usha Pillai

    4 years ago

    I had applied for the second tranche of this bond scheme in Jan 2016 thru SHCIL and had opted for demat credit. After a month's delay, SHCIL sent me a soft copy of the certificate issued by RBI but no credit has come to my demat account till date (Apr 1, 2016). Neither have I received the original certificate. SHCIL says they are helpless. No word from RBI.What recourse do I have?

    Kinshuk Chandra

    4 years ago

    What an idea sir ji :) I agree with you a lot on this :)

    Government moots gold exchange for transparent trading
    The government is mulling a gold exchange for transparent trading of the yellow metal and to reduce dependence on imports from overseas, a top official said on Tuesday.
     
    "A gold exchange for transparent trading will facilitate jewellers to buy and sell the precious metal locally instead of depending on the international market," Economic Affairs Secretary Shaktikanta Das said at a summit here.
     
    Inaugurating the third India International Bullion summit, organised by Indian Bullion & Jewellery Association (IBJA), he said such a transparent platform could be used by those who have surplus gold to sell it to those requiring it.
     
    "A jeweller who needs gold temporarily can buy it locally instead of importing it," Das said.
     
    On the gold monetisation scheme, launched November 6 by Prime Minister Narendra Modi in New Delhi along with two other gold schemes, Das admitted that it was not easy to convince people to part with their jewellery, which had emotional value attached it.
     
    "We need to change the mindset and understand the psyche of the people. We need to involve you (jewellers) to talk to traditional customers and bring them into the scheme," he stressed/
     
    The other two are gold sovereign bond scheme and gold coin and bullion scheme to mobilise the precious metal lying within the country for re-use and curb its surging imports, which were resulting in huge outgo of foreign exchange and impacting the current account deficit.
     
    The Bureau of Indian Standards has invited applications from 13,000 licensed jewellers to act as a collection and purity testing centres across the country.
     
    When IBJA president Mohit Khamboj urged the central government to set up a dedicated gold bank to boost the industry, Das said it was not feasible.
     
    According to Additional Secretary, Commerce, J.K. Dadoo, a whopping 22,000 tonne of gold, valued at $1 trillion was lying across the country, with about 90 percent of it in temples and religious places.
     
    Former SBI chairman O.P. Bhatt suggested that the maturity period for the gold bond scheme should be 10-15 years instead of 8-10 years to make it attractive.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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