KOLKATA: Securities and Exchange Board of India (SEBI) on Saturday expressed concern over related party transactions, a method "frequently" employed by corporates for diversion of funds.
The capital markets regulator also said another means of such diversion was extension of loans.
"Related party transactions are being frequently used for diversion of funds by corporates. Another instance is extension of loans of companies to related parties. The list is endless. This really bothers the regulator", SEBI's Executive Director Amarjeet Singh said.
Speaking at the Financial Market Conclave organised by CII here, he said these practices should be discontinued in the interest of listed companies, promoters and related parties.
Singh said fraudulent related party transactions were being used for "siphoning of funds".
Singh said that regarding corporate governance, there had been a decline of trust for which SEBI had already initiated steps.
"Serious corporate governance issues witn..
NEW DELHI: Benchmark indices dropped over 2 per cent this week, as trade war concerns came back to haunt global equities. The escalating war of words between the US and China, US Fed’s not-so-dovish rate guidance and intensifying foreign outflow from India dragged domestic stocks lower for the fourth week in a row. Domestic earnings too disappointed.
The silver lining for the week was the Friday’s strong rebound on back of reports that the PMO was looking to tweak recent market unfriendly announcements. Besides, investors seem to have stopped reacting much to weak corporate numbers, Maruti’s case in mind, suggesting the weak numbers are in the price.
For the week, Nifty settled at 10,997, down 286 points or 2.54 per cent. Sensex fell 764 points, or 2.1 per cent, to 37,118.22.
Here are a few stocks which buzz the most all through the week:
Coffee Day Enterprises: The scrip nose-dived 49 per cent for the week to end at Rs 99.90 after VG Siddhartha allegedly committed suicide and left..
New Delhi: State-owned Punjab National Bank (PNB) on Saturday said the RBI has imposed a penalty of Rs 50 lakh on it for delay in reporting of fraud in the account of Kingfisher Airlines.
"RBI observed from the fraud monitoring report-1 submitted by Punjab National Bank on July, 10 2018 that the bank had delayed the reporting of fraud in the account of Kingfisher Airlines Limited," PNB said in a regulatory filing.
In exercise of the powers conferred under various sections of the Banking Regulation Act, 1949, a penalty of Rs 50 lakh was imposed by the RBI on the bank, it added.
In a separate filing, Bank of Baroda said the RBI has imposed a fine of Rs 50 lakh on it for delay in reporting fraud in an account.
New Delhi: Drug major Sun Pharma on Saturday said it is discontinuing operations at two clinical pharmacology units in Vadodara (Gujarat) to bring in efficiencies in cost and processes.
"While we continue to make investments in our R&D operations, we also constantly evaluate our resources and future capacity requirements to bring in efficiencies in cost and processes," a Sun Pharmaceutical Industries spokesperson said in a statement.
To ensure optimal utilisation of clinical pharmacology units (CPUs) that conduct bio-equivalence studies, the company is discontinuing operations at two centers at Tandalja and Akota in Vadodara, the spokesperson added.
"The bio-equivalence studies from these centers will be transferred to our other facilities. We are offering full support to the affected employees and helping them with out placement services," the spokesperson said.
As per industry sources, the move would impact around 80 staffers at the two locations.
Sun Pharma has six major R&D ce..
Just three accounts can help SBI recover over Rs 16,000 crore this year, said Rajnish Kumar, Chairman at SBI. In an interview with ET NOW, Kumar said that his bank is waiting for the resolution plan by DHFL. Excerpts:
Can you give us a break-up of your June quarter slippages?
There were two or three major hits. The first is an account which got classified as NPA from the entire banking system one bank could not complete all the documentation in time. There is no doubt that everything is fine for that account and that the recovery is a normal repayment recovery. The pedigree, which cannot be doubted that itself is Rs 2,000 crore.
In agriculture loan segment, we had a problem in one state, where our gross slippages went up by almost Rs 2,000 crore. But such slippages in agriculture are usually higher in the first quarter. We have SME slippages of Rs 1,500 crore. Last year, we had the benefit of restructuring and forbearance on asset classification, which was also not available this ti..
NEW DELHI: Coming down heavily on fraudulent trade practices, markets regulator Sebi on Friday slapped a fine of over Rs 18 crore on 35 entities for indulging in circular trading and share price manipulation in the matter of Octant Interactive Technologies Ltd (OTIL), now known as Swarnajyothi Agrotech & Power.
"...it is a clear case of pump and dump wherein certain entities by trading among themselves had rigged the price, upon taking at greater height, dumped their shares and other entities slowly exited from the scrip by leaving other investors in severe losses," Sebi said while imposing fine on the entities.
The penalty imposed on entities ranges from Rs 25 lakh to Rs 3 crore. The Securities and Exchange Board of India (Sebi) had conducted investigation into trading of OTIL's shares from January 2009 to September 2009.
Following the investigation, Sebi observed that the 35 entities were connected to each other and were hand in gloves with the brokers concerned in manipulati..
NEW DELHI: The issue price of Sovereign Gold Bonds 2019-20 (Series III) has been fixed at Rs 3,499 per gram of gold, the finance ministry said in a statement on Friday.
The Bonds will be open for subscription on August 5 and close on August 9.
"The issue price of the Bond during this subscription period shall be Rs 3,499 per gram with settlement date August 14, 2019..." it said.
It further said the government in consultation with the Reserve Bank of India has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode.
For such investors, the issue price of the gold bond will be Rs 3,449 per gram of gold.
The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings.
Beijing pledged to respond if the US insists on adding extra tariffs to the remainder of Chinese imports, as President Donald Trump’s abrupt escalation of the trade war between the world’s largest economies sent stocks tumbling across three continents.
Trump announced Thursday that he would impose a 10% tariff on a further $300 billion in Chinese imports, a move set to hit American consumers more directly than his other tariffs so far. The new import taxes, which Trump later said could go “well beyond” 25%, will be imposed beginning Sept. 1 on a long list of goods expected to include smart-phones, laptop computers and children’s clothing.
“If the U.S. is going to implement the additional tariffs, China will have to take necessary countermeasures,” Foreign Ministry spokeswoman Hua Chunying said at a regular briefing in Beijing on Friday. She didn’t elaborate on what the measures would be.
“China won’t accept any maximum pressure, threat, or blackmailing, and won’t compromise at all o..
Mumbai: Spandana Sphoorty Financial, a micro lender, said it has raised around Rs 360.28 crore from 18 anchor investors at the upper end of the price band at Rs 856.
These investors include Wells Fargo Emerging Markets Equity Fund, Florida Retirement System, Bajaj Allianz Life Insurance company among others.
The microfinance company has priced its shares for initial public offering in the range of Rs 853 to Rs 856 apiece which if subscribed at the top end will give it a market valuation of Rs 5,500 crore.
The offer of 93 lakh shares, including by early stage investors and by Padmaja Ganjireddy is open between August 5 and 7.
Its IPO comprises a fresh share sale for Rs 400 crore and an offer for sale for about Rs 800 crore.
Investors including Helion Venture Partners and Kedaara Capital would be selling in the offer.
The management is confident of growth despite hiccups faced by micro lenders over the years including a clamp down by Andhra Pradesh a few years ago and a series of f..