SEBI constitutes panel to link research to policy making
Market regulator Security and Exchange Board of India (SEBI) has constituted a "Research Advisory" committee which will assist in formulating policy to undertake research relevant for development and regulation of capital markets.
 
According to SEBI, the committee would comprise prominent financial economists and market practitioners. It will be headed by Sankar De.
 
"In order to strengthen its research function and enhance its linkage to policy making, SEBI has constituted a 'Research Advisory Committee' headed by Sankar De," a SEBI statement said.
 
Among the other functions of the committee will be defining objectives, scope and direction of research relevant for development and regulation of capital markets in the country with focus on "linkage of research to policy making".
 
The statement further said that another key task of the committee will be to maintain databases relevant for capital market regulation research.
 
"Exploring research collaborations with external researchers, including other regulators as well as academic institutions, both domestically and overseas, as appropriate," the statement noted about the functions of the committee.
 
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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Maharashtra Minister Subhash Deshmukh’s Lokmangal Agro’s Bank, Demat Account Attached
Market regulator Securities and Exchange Board of India (SEBI) has issued attachment orders against Lokmangal Agro Industries and seven of the company directors for failing to refund Rs74.82 crore to investors. The Lokmangal Group is associated with Maharashtra’s minister for cooperative, Subhash Deshmukh, whose wife Smita is one of the directors against whom SEBI has passed the order.
 
Earlier on 16 May 2018, SEBI had asked Lokmangal Agro and its directors, Smita Subhash Deskhmukh, Vaijnath Nagappa Lature, Audumber Sandipan Deshmukh, Shahaji Gulchand Pawar, Gurrana Apparao Teli, Mahesh Satishchandra Deshmukh and Parag Suresh Patil to refund funds worth Rs74.82 crore collected from investors with an interest of 15%. However, the company and its directors failed to refund the money to investors and did not furnish any report of repayment. 
 
In its recovery proceeding orders issued on 3 January 2019, Jai Sebastian, deputy general manager and recovery officer of SEBI, says, “Till date, the defaulters have not replied and field any asset details. In these circumstances and as per the conduct of the defaulters, there is likelihood that the defaulter/s  may take out the funds or securities from their bank or demat account…in order to protect the assets from any sort of alienation, it is necessary to attach the bank, demat and mutual fund accounts to prevent the defaults from removing or concealing the same.” 
 
Lokmangal was banned from the securities market for at least four years. The funds were raised in contravention of the provisions of the Companies Act and Issue of Capital and Disclosure Requirements (ICDR) Regulations, the regulator said.
 
Lokmangal group from Solapur was headed by minister Deshkumkh, however after he was inducted in the state cabinet, he handed over the reins of the group to his son. However, the Lokmangal group has been under the regulatory lens of various authorities.
 
Besides the notice from SEBI, earlier in November 2018, Maharashtra government had asked the district dairy development officer from Solapur to file a first information report (FIR) against Lokmangal Multistate Cooperative Society, headed by Mr Deshmukh. This was result of cancellation of Rs24 crore contract given to the society by the department. 
 
“A report submitted by the animal husbandry department had concluded that Mr Deshmukh’s society submitted forged and fabricated documents from the Maharashtra Pollution Control Board in Pune and Solapur; the Industrial Security and Health Department, Solapur; the Food and Drug Administration, Solapur; and Deputy Divisional Engineer, Public Works Department, North Solapur,” says a report from the Hindu.
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Bombay HC Refuses To Stay RBI's 31st Dec Deadline for Kotak Mahindra Bank
The Bombay High Court on Monday refused to grant a stay on the deadline given by Reserve Bank of India (RBI) to Kotak Mahindra Bank for dilution of promoter stake. The RBI had given a deadline of 31 December 2018 for diluting the promoter's stake in Kotak Mahindra Bank. With the High Court’s refusal to grant a stay, Kotak Mahindra Bank had to follow the 31st December deadline given by the central bank. 
 
Last week, Kotak Mahindra Bank had filed a writ petition against RBI to validate its position over dilution of promoter stake. In August this year, the central bank had rejected the Bank's position saying that issuance of perpetual non-convertible preference shares (PNCPS) by Kotak Mahindra Bank does not meet the dilution requirement of promoter stake.
 
In a regulatory filing, the lender had said, "We had clarified and conveyed to the RBI our position in relation to PNCPS being a part of paid up capital and the legal basis on the matter of dilution of shareholding under the Banking Regulation Act.
 
"We had also shared with the RBI the opinions of eminent jurists and senior-most legal counsels of the country which confirm our understanding. However, we have not heard from the RBI on the above matter. Given the milestone of 31 December 2018, the Bank has been left with no option but to protect its interest. By way of abundant caution, the Bank has today filed a writ petition with the Bombay High Court to validate the Bank's position."
 
Following RBI's directions, on 2 August 2018, Uday Kotak, promoter of the Bank, had sold about 1 billion PNCPS to domestic institutional investors and companies.
 
The sale, at Rs5 per share or at about Rs500 crore, helped the promoter to reduce his stake to 19.7% from 30%.
 
The next hearing in the case is scheduled for 17 January 2019.
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