REGULATIONS


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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Sucheta Dalal Sucheta Dalal 17 January 2012
Former RBI Deputy Governor's appointment as NSE director raises too many questions   Reserve bank of India's (RBI) former deputy governor, Shyamala Gopinath taking over as director of the extremely profitable, near-monopoly National Stock Exchange (NSE) has raised serious issues of conflict of...

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Aditya Govindaraj Aditya Govindaraj 16 January 2012
Due to the sharp fall in price of the scrip on the listing day (from around Rs60 to Rs18.10), genuine investors who had purchased the shares on the first trading day have been left with no option, but, to continue holding the shares which have hardly any value and thus incurring huge losses

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Moneylife Digital Team 14 January 2012
New guidelines for public shareholding of listed companies may offer convenient exit route for some companies wanting to avoid public scrutiny Corporate laws and frameworks are generally supposed to protect consumers and the society, at large, from any wrong doings incurred by a company....

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Aditya Govindaraj Aditya Govindaraj 13 January 2012
SEBI has asked Brooks to call back the ICDs advanced by it to certain entities and together with all the IPO proceeds deposit it in an interest-bearing escrow account. Investors are not getting back their money yet; but the curious fact is that investors to these dubious IPOs don’t seem to be...

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Aditya Govindaraj Aditya Govindaraj 12 January 2012
How exactly did the seven IPOs that were the subject of SEBI’s regulatory action dupe investors? Aditya Govindaraj explains what they did and how... (This is the first part of a series of articles on SEBI’s regulatory action) The Securities & Exchange Board of India (SEBI) recently barred...

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Moneylife Digital Team 12 January 2012
The market regulator asked seven merchant bankers to disclose track record of the performance of the IPOs managed by them. Surprisingly the SEBI seems to have overlooked the ‘not-so-clean’ history of these merchant bankers The Securities and Exchange Board of India (SEBI) has to be...

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Sucheta Dalal Sucheta Dalal 10 January 2012
The new regime blames the older one for shoddy work If the systematic loot through IPOs continues two decades after the Controller of Capital Issues (CCI) was scrapped, is it any wonder that investors still hanker for the good old days before liberalisation?  This is important; because days...

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Sucheta Dalal Sucheta Dalal 10 January 2012
While SEBI’s investigation department deserves kudos for this action, the larger question is: Will the investigation stand up to the judicial process? Also what about the bigger mess? The Securities and Exchange Board of India’s (SEBI) decisive crackdown against rampant manipulation of...

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