NEW DELHI: Against the backdrop of recent chit fund controversy in West Bengal, a Parliamentary committee on Friday slammed such schemes with demands for putting in place a single regulator to oversee their functioning or scrapping them altogether.
The Parliamentary Standing Committee on Finance closely scrutinised the functioning of such schemes which recently led to a series of suicides in West
Senior officials from RBI, CBDT, SEBI, Corporate Affairs Ministry and Finance Ministry, who appeared before the committee, admitted poor coordination and lack of regulation to control the flourishing chit fund business in the country.
While agreeing that thousands of investors are being duped, they told the committee that the major onus lied on the states to regulate the schemes.
Accusing the Centre of giving conflicting data, a member later said while government claims that the scheme is functioning in 15 states, in reply to a question in Parliament, it has informed that chit fund business was flourishing in 17 states and six Union Territories.
Committee chairman and BJP leader Mr Yashwant Sinha suggested that the 1982 Act regulating the chit fund business in the country be repealed through an ordinance, sources said.
He was of the view that the chit fund business should be scrapped to protect innocent investors.
While most members, cutting across party lines supported his idea, some others said repealing the Act would not ensure that chit fund companies stop functioning.
The members were unanimous that there should be a “single law and a single regulator” to deal with such schemes, the sources said.
The meeting was called in the backdrop of the collapse of the Saradha Group that had duped lakhs of investors of their hard-earned savings totalling thousands of crores of rupees.
The Parliamentary panel has asked the Finance Ministry to submit a written reply on the operation of such investment schemes in the country and preventive actions taken by them.
A member of the panel and CPI leader Mr Gurudas Dasgupta is understood to have attacked Finance Ministry for the Saradha fiasco terming it as complete failure of the government.
The panel has called the RBI representatives on May 24 to the discuss the issue at length. Similarly the committee would meet SEBI representatives on May 31.
Among those who attended the meeting were Department of Economic Affairs Secretary Mr Arvind Mayaram, Secretary, Financial Services Mr Rajiv Takru, Corporate Affairs Secretary Mr Naved Masood, CBDT chairperson Ms Poonam Kishore Saxena and an Executive Director of RBI.
MUMBAI: Continuing its upward march for the fourth straight day, the BSE benchmark Sensex on Friday rose by 39 points to close at fresh 28-month high of 20,286.12 helped by buying in ICICI Bank, L&T and Infosys shares amid increased capital inflows.
After a sedate start, the 30-share index rose by 38.79 points, or 0.19 per cent, to end the day at 20,286.12 -- the highest since 20,301.10 on January 5, 2011.
It has gained 594.45 points or 3 per cent in 4 days. On a weekly basis, Sensex has gained just 0.81 per cent.
The National Stock Exchange index -- Nifty -- today rose by 17.40 points, or 0.28 per cent, to 6,187.30. Also, MCX-SX flagship index SX40 rose 18.03 points, or 0.15 per cent, to end at 11,972.52. Brokers said the market remained bullish on reports of higher foreign fund inflows on optimism about a rate cut by RBI in the wake of falling inflation numbers. A better trend in Asian region and higher opening in Europe further influenced the trading sentiment, they added.
Most Asian stock ended higher. European stocks showed a mixed trend in their early trade.
Power, Capital Goods and Realty sectors attracted good buying. Bhel was the best performer with shares jumping by 4 per cent on FII buying.
Banking scrips were in demand on hopes of interest rate cut with ICICI Bank (1.92 per cent) and SBI (0.41 per cent) among gainers.
ITC ended 0.62 per cent down after posting Q4 results. Bharti Airtel and Sterlite Ind were among major losers. Outside major indices, JM Financial rose by 13.4 per cent after the company said former Citigroup chief Mr Vikram Pandit will buy stake in the firm and lead proposed banking foray.
Globally, benchmark indices in China and Japan today rose by 0.67 per cent to 1.38 per cent while indices in Singapore and Taiwan declined by 0.09 per cent to 0.26 per cent. Stock markets in Hong Kong and South Korea were closed on Friday.
European stocks showed a mixed trend in their early trade as indices in UK and France inched up by 0.10 per cent to 0.10 per cent while Germany’s DAX eased by 0.06 per cent.
US stocks fell on Thursday after reports said Federal Reserve may pullback the central bank’s easing programmes earlier than expected.
Moving back to the domestic market, 16 scrips out of the 30-share Sensex pack ended higher while 14 scrips finished lower. Major gainers from the Sensex were BHEL (4.00 per cent), NTPC (2.24 per cent), ICICI Bank (1.92 per cent), L&T (1.84 per cent), Bajaj Auto (1.44 per cent) and Jindal Steel (1.36 per cent). However, Bharti Airtel dropped by 1.96 per cent, followed by Dr Reddy’s Lab (1.80 per cent), Sterlite Ind. (1.32 per cent) and Maruti Suzuki (1 per cent).
Among the sectoral indices, S&P BSE-Power rose by 3.08 per cent, followed by S&P BSE-CG (2.96 per cent), S&P BSE-Realty (2.02 per cent) while S&P BSE-CD eased by 0.72 per cent and the S&P BSE-HC by 0.39 per cent.
Total market breadth continued to show negative trend as 1,245 stocks finished higher while 1,112 stocks ended lower. 142 stocks ruled steady.
“Foreign fund flow has been strong as well. Investors are also betting on an aggressive reduction in interest rate following the April inflation numbers which came at sub 5% after a long period of time,” said Mr Sanjeev Zarbade, vice-president - Private Client Group Research, Kotak Securities.
Foreign Instituional Investors (FIIs) continued their buying spree by investing net Rs 1,070.33 crore on Thursday as per the provisional figure from stock exchanges.
PANAJI: Export Credit Guarantee Corporation of India Ltd (ECGC) paid out aggregate claims of Rs 548 crore to Indian exporters and financing banks during FY 2012-13 in the wake of continuing global economic recession and uncertainties. GOI has subscribed Rs 100 crore in September 2012 towards paid-up capital of the corporation. The corporation’s paid-up capital stands at Rs 1,000 crore, same as its authorised capital. Earlier, Mr Anand Sharma, Minister for Commerce, Industry and Textiles has indicated that the government may consider an increase in the authorised capital of the corporation to Rs 5,000 crore. The corporation’s net worth as on Mar 31, 2013 is Rs 2,437 crore and has built up cumulative provision aggregating to Rs 2,588 crore as on Mar 31, 2013. The corporation’s investments and bank deposits are over Rs 5,000 crore and its solvency ratio as on Mar 31, 2013 was 9.64 versus the regulator’s norm of 1.5. NT
PMC Bank offers mobile banking facility for donations
PANAJI: Sansthan Shridev Ganpatipule in Ratnagiri District of Maharashtra has tied up with Punjab and Maharashtra Co-operative Bank Ltd and has also registered to utilise PMC Bank’s mobile banking service to receive donations from the devotees across the country. The mobile banking service of PMC Bank called as ‘Mobile Pay’ which was launched in July 2012, facilitates transactions using mobiles. It is 24x7x365, time and cost saving, most convenient, safe, secure and simple to use facility. An inauguration function of the said facility which is made available to devotees, was organised at Ganpatipule, Ratnagiri. The event was attended by customers, well wishers and devotees. Dr Vivek Bhide, Dr Shriram Kelkar and Mr Amit Meheridhale amongst the trustees graced the occasion. Ms Manisha Nerurkar - DGM of PMC Bank and Ms Ketaki Vidwans – incharge of Ratnagiri branch, honoured the trustees and expressed gratitude for their co-operation and support. NT
Ford launches new Fiesta
PANAJI: Ford has introduced the new Fiesta Powershift Automatic. Launched for the style trim variant, it revolutionises the segment by offering customers the comfort and convenience of six-speed dual clutch Powershift Technology. The car offers a fuel efficiency of 16.97 kmpl. The Powershift Automatic has a unique sealed-for-life transmission unit that requires no maintenance for 10 years or 2,40,000 kms and is equipped with segment first technology like the voice-control, hill launch assist, Ford Grade-Assist, cruise control and rear parking sensors. The new Fiesta will be available in Style & Titanium+ trims powered by the 1.5 litre Ti-VCT petrol powertrain. The new Fiesta will benefit from Electronic Stability Performance (ESP) that helps the driver maintain control if the vehicle under unexpected driving conditions, such as an obstacle or slippery road surface. It is the first model to be introduced under a plan announced by the company last year to launch eight new global Ford vehicles to India by the middle of the decade. NT
GSFC registers encouraging growth
MUMBAI: Gujarat State Fertilisers and Chemicals Limited has reported a turnover of Rs 6,253 crore for the financial year 2012-13 as compared to Rs 5,302 crore for the previous financial year, thus registering a growth of 18 per cent. The company made a profit before tax of Rs 768 crore. The net profit is at Rs 518 crore as against Rs 758 crore for the previous financial year. The board of directors of the company has recommended a dividend @ 100 per cent on its equity shares. This amounts to a payout ratio of 18 per cent as against payout ratio of 8 per cent last year. While the turnover for the fourth quarter of FY 2012-13 was Rs 1,696 crore as compared to Rs 1,530 crore for the corresponding quarter of the previous financial year.
MT Educare reports `18 cr net profit
MUMBAI: MT Educare Limited (MTEL) announced its audited financial results for the quarter and year ended March 31, 2013. MTEL reported a consolidated net profit of Rs 18.05 crore for the year ended March 31, 2013 as compared to Rs 13.23 crore last year, a rise of 36 per cent y-o-y. Total consolidated income for FY 2012-13 stood at Rs 157.28 crore as compared to Rs 130.57 crore last year, a growth of 20 per cent y-o-y. The Consolidated EPS (diluted) for the year stood at Rs 4.55 per share. MTEL Board declared a second interim dividend of Re 1 per share (10 per cent). This added with Re 1 per share distributed earlier in Nov 2012, along with dividend tax amounts to 50 per cent payout of the profits, which is in line with the company’s dividend policy announced last year, said the press release.
Neuland Labs’ revenues rise
MUMBAI: Neuland Laboratories Ltd, a pharmaceutical manufacturer providing active pharmaceutical ingredients, complex intermediates and contract manufacturing services to customers located in 85 countries, announced financial results for the 2013 fiscal year (FY) ended March 31, 2013. Revenues for FY 2013 were $85.0 million (Rs 4.61 billion) compared to FY 2012 revenues of $82.7 million (Rs 4.48 billion, an increase of 2.8 per cent. The increase in revenues primarily reflects gains in sales of the company’s products and services from its API and contract research and manufacturing businesses. Neuland reported FY 2013 EBITDA of $11.3 million (Rs 614.5 million), compared to EBITDA of $8.9 million (Rs 483.5 million) in FY 2012, an increase of 27.1 per cent. After-tax profits in FY 2013 were $2.5 million (Rs 136.4 million), compared to after-tax profits in FY 2012 of $0.4 million (Rs 20.3 million), said the press release.
MUMBAI: Rising for third consecutive day, the BSE benchmark Sensex on Thursday advanced by 34 points to close at fresh 28-month high on good gains in heavyweight Reliance Industries and banking shares like ICICI Bank and HDFC Bank amid continued hopes of a rate cut.
CHANDIGARH: The pace of credit offtake in Haryana -- one of the most industrialised states in the country -- slowed by half during 2012-13 in the wake of poor demand for loans from the industrial sector.
ISHRAE’s working committee reconstituted PANAJI: The Indian Society of Heating, Refrigerating and Air-Conditioning Engineers (ISHRAE), Goa Chapter’s new working committee for the society year 2013-14 was administered the oath at a recently held ceremony at the International Centre, Dona Paula.
NEW DELHI: In a bid to sell India story and lure overseas investments, Finance Minister Mr P Chidambaram Wednesday embarked on a three-nation tour to UK, France and Qatar.
During the 5-day tour, Mr Chidambaram will hold a meeting with his UK counterpart Mr George Osborne and address investor conferences. He will also hold meetings with leading UK investors.
Leading a delegation, Mr Chidambaram will participate in the Sixth Ministerial India–UK Economic and Financial Dialogue (EFD) on Thursday, the Finance Ministry said in a statement.
He will also have discussions on current financial sector reforms by UK and India’s regulatory bodies, it added. Mr Chidambaram and Mr Osborne are also likely to hold discussions on G-20 Clearing Committee on OTC derivatives, priority sector lending, Bangalore-Mumbai economic corridor and visa issues.
During the second lap of his foreign visit, Mr Chidambaram would reach Paris on May 17, 2013.
He is scheduled to hold a meeting with leading investors and have discussions with OECD Secretary General Mr Angel Gurria during his one day stay in Paris.
Thereafter, Mr Chidambaram will arrive in Doha, Qatar on May 18 where he will hold discussions with the Minister of Economy and Finance Mr Yousef Hussan Kamal.
Mr Chidambaram will also meet CEO of Qatar Investment Authority and CEO of Qatari Business Association among others.
Mr Chidambaram’s meetings in Qatar will include CEOs of leading companies, banks and Pension Funds there. He will leave for India on May 19.
The Finance Minister will be accompanied by Department of Economic Affairs Additional Secretary Mr Shaktikanta Das and RBI Deputy Governor Mr Anand Sinha, among others.
Mr Chidambaram earlier held similar investor meets in Hong Kong, Singapore, Europe, Japan, Germany, Frankfurt, Canada and the United States to attract foreign investment into India.
India is betting big on foreign resources to finance the Current Account Deficit (CAD), which has widened to record high of 6.7 per cent in October-December quarter of 2012-13.
In his earlier meetings with the investor community, Mr Chidambaram had expressed India’s commitment to economic reforms. He also highlighted the measures proposed in the Budget 2013-14 for markets and investments to help the economy grow at 6.1-6.7 per cent.
PANAJI: Japanese electronics maker Sharp Business Systems India Corp, which went in for a revamp, has entered the Goa home appliance market by appointing a Goa distributor.
The Pune-based Sharp India which has set up a Rs 270 crore plant manufactures consumer durables. It assembles LCD (liquid crystal display) televisions, and manufactures air conditioners, refrigerators and microwave-ovens.
In an interaction with presspersons, CEO and managing director Mr Sunil Sinha said Sharp Business takes care of marketing, services and sales of Sharp products. This company has tied up with Lotus Enterprise, a Goa distributor, for sales of its high quality products sold at affordable prices.
Sharp’s single distributor Lotus Enterprise will service 35 retailers and dealers network around the state. This alliance will give a jump-start for Sharp products in the Goa market, which Mr Sinha says is very unique and among the fastest growing home appliance market in the country.
Sharp’s products are fitted with AC to DC inverters whereby it will cut down energy used by 60 per cent, Mr Sinha said, and adding, for the fridges a hybrid cooling unit to keep the vegetables fresh. Vegetables will not become dry.
PANAJI: Sharayu Toyota announced its first Toyota car delivery from its latest showroom in Panaji. The new facility, located in the strategic Panaji city, was delighted to deliver their first Toyota Etios and the keys were handed over to Ms Khairoo Andani Khavtay by Mr Gaurish Sakhardande, GM (Sales & Marketing) Sharayu Toyota.
Mr Gaurish later said, “We are committed to delivering the uncompromised ownership experience that comes as standard with every Toyota car. We know we’ve done our job when every customer leaves smiling. This showroom is a milestone in our commitment to further build on the success of Toyota in the region, with more 42 sales bookings registered in close to 28 days of opening the new showroom, Toyota is cementing its reputation as one of India’s most in-demand new cars. We want to continue to affirm the brand as the pinnacle of luxury motoring for the highly discerning clientele. We are confident that the showroom will serve to further boost sales and brand perception as we continue to compete with our own class of quality and reliability. The showroom is complete and one can see all our Toyota products being displayed here.
He also mentioned that Sharayu Toyota is committed to customer satisfaction and has recently been ranked 2nd All India among close to 225 Toyota dealers for customer service. The same can be experienced all under one roof, be it finance, insurance, state of the art virtual accessory display at their Panaji outlet.
This Sharayu Toyota, Panaji outlet is located next to Living room, St-Inez.