REGULATIONS


Sucheta Dalal Sucheta Dalal 22 February 2012
Can SEBI break the cabal of promoters, investment bankers, financiers and manipulators? The 20% run-up of Indian stock indices, which has market experts calling a bull market, is a great source of encouragement for the finance ministry, which desperately needs to raise funds. The SEBI...

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Moneylife Digital Team 16 February 2012
NSDL Database Management Ltd (NDML), a wholly-owned subsidiary of National Securities Depository Ltd (NSDL), has established KYC Registration Agency (KRA) pursuant to SEBI KYC Registration Regulations, 2011. To avoid duplication of KYC process with every intermediary, SEBI has prescribed a...

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Moneylife Digital Team 16 February 2012
Justice Kanade of the Special Court also observed that fresh applications are filled for recovery without ascertaining whether prima facie case is made out or not, and that too after several years The Special Court, hearing offences related to securities market, has asked the Custodian to pay...

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Gurpur Gurpur 16 February 2012
The scandal involving the chairman of Swiss National Bank and his consequent resignation brings to the focus the need to formulate appropriate guidelines on insider trading, corporate governance standards, conflict of interest, etc. for all the regulators in India and this should be taken up on...

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Moneylife Digital Team 15 February 2012
Aphro Finance is neither a bank nor a financial institution, yet it claims to provide interest-free loans between Rs6 lakh and Rs33 lakh to women in Tamil Nadu to buy homes constructed by itself or its sister concern. What is the source of funding for AphroFin? Anyone who want to take a home...

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Moneylife Digital Team 14 February 2012
The RBI has raised a series of concern over banks foraying into non-banking activities like insurance, broking and mutual funds. It has written to the finance ministry to amend the RBI Act that will allow RBI to supervise bank subsidiaries. The current norm does not give the apex bank...

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Moneylife Digital Team 10 February 2012
RBI’s order to prohibit Manappuram from accepting/renewing deposits comes 14 months after Moneylife discovered flaws in the business model of gold-loan companies The Reserve Bank of India (RBI) has prohibited Manappuram Finance (Manappuram), a Thrissur-based non-banking finance company...

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Moneylife Digital Team 03 February 2012
RBI has issued another warning about scam e-mails & SMSs, and has asked people to stay away from such messages. RBI advised people to register a complaint with the local police/cyber crime authorities, or through nodal agencies given on RBI’s website, with whom the public can register, in...

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Moneylife Digital Team 03 February 2012
SEBI has sought a complete overhaul of the current regulations for ‘collective investment scheme’ or CIS, as it fears that loopholes in current rules allow gullible investors to be taken for a ride. In a CIS, the payments are pooled by investors for certain pre-specified purposes; profits are...

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Moneylife Digital team 03 February 2012
SEBI said fund houses should launch pension products, to attract retirement money into the capital market. Noting that retirement and pension money is not being invested in the equity market, SEBI chairman UK Sinha wondered why asset management companies (AMCs) are not launching funds aimed at...

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Gurpur Gurpur 27 January 2012
The guidelines on bank CEOs’ compensation lack clarity and call for a re-look in respect of private banks. And given the huge disparity in remuneration existing between private and public sector banks, RBI should consider realigning the remuneration of CEOs of public sector banks also in tune...

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Sucheta Dalal Sucheta Dalal 24 January 2012
Only 4 small banks have jacked up the rates Do customers understand the implications of pulling their money out of the savings accounts of nationalised banks and larger private banks to rush to those who are offering 6% and 7% returns—touted as a 50% jump on the previous 3.5%? Moneylife...

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Sucheta Dalal Sucheta Dalal 24 January 2012
Perplexing lack of regulatory effort The biggest sources of misleading advertisements are ponzi and multi-level marketing (MLM) schemes. Many of these schemes have a product which acts more like a cover for their mathematically unviable binary selling. Moneylife readers know how MLM schemes...

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Sucheta Dalal Sucheta Dalal 24 January 2012
Mis-selling is easy because the rules are not uniform Sunil Parekh, trustee of the Consumer Education & Research Centre (CERC), Ahmedabad, returned from a global, once-in-four-years summit of Consumer Union International at Hong Kong and reported that the single biggest concern for consumer...

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Sucheta Dalal Sucheta Dalal 23 January 2012
Why do governance rules not apply to those who frame and administer the laws? Over the past two decades of financial liberalisation, India’s investor population has shrunk to a third (from 20 million in 1992 to 8 million, according to official reports) as investors turned away from equities...

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Aditya Govindaraj Aditya Govindaraj 20 January 2012
A SEBI probe revealed that RDB Rasayans diverted its IPO proceeds to various entities, flouting several disclosure norms. The regulator also barred the company, its key management team and the merchant banker from accessing the market but such entities will continue to cheat the investors if...

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Aditya Govindaraj Aditya Govindaraj 19 January 2012
On the day of the listing, 17 October 2011, and the days subsequent to listing, the OCAL scrip was trading in an anomalous fashion, when it shot up from Rs115 to Rs198. SEBI had discovered that OCAL had manipulated its share price by diverting the IPO proceeds through structured layers of...

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Aditya Govindaraj Aditya Govindaraj 18 January 2012
Investigations by the market regulator revealed that TSL had deliberately concealed material facts from the public issue. It had also misled investors to thinking that the company had pan-global presence. Besides, TSL misused the IPO proceeds toward paying off Inter-Corporate Deposits to the...

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Aditya Govindaraj Aditya Govindaraj 17 January 2012
PGEL in a bid to boost its share price on day one, had intentionally chosen select companies vis-a-vis ICDs and ordered them to divert the IPO money to entities who would eventually buy its shares in the open market on day of listing, and for the next few days, swindling investors in the process

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R Balakrishnan R Balakrishnan 17 January 2012
The savings in costs by doing away with branch audits is one gain. The other is to put more responsibility on the main auditor, who now has to give his opinion without hedging that he has depended on another person to audit branches A report in a leading business newspaper titled ‘CAs lobby...

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