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No hasty action on SIT report on money laundering: Jaitley

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File Photo.
File Photo.

 

New Delhi: Reacting to a SIT report suggesting that market regulator SEBI needs to monitor participatory note misuse for money laundering, the government on Monday said it would avoid any knee-jerk decision that could hurt investor sentiment.

The government also said that it would study the Special Investigation Team (SIT) recommendations in due course of time.

The BSE Sensex fell sharply by over 400 points in intra-day trade on concerns over curbs on P-notes, while the 50-scrip Nifty fell below its support level of 8450.

“No step would be taken which could adversely impact investment sentiment in the country. But the government will certainly not take any such action in a knee-jerk fashion, particularly one which has any adverse impact on investment environment,” Finance Minister Arun Jaitley told reporters in his parliament office.

“The government will apply its mind in due course keeping in mind the investment environment of the country as also the objective behind the SIT recommendations and then take a final view on the matter,” he added.

“The government will study those recommendations, and take decision after due consultation with all stakeholders,” Revenue Secretary Shaktikanta Das also told reporters here.

“At this point, there is no need for the market to respond or react in any manner and not show any panic,” he said.

“The KYC (know-your-customer) and other requirements under P-notes regime have been improved over the last few years,” he added.

The Supreme Court-appointed SIT on black money on Friday said Securities and Exchange Board of India (SEBI) must have a monitoring mechanism for unusual rise of stock prices and study the misuse of participatory notes for money laundering.

“SEBI needs to have an effective monitoring mechanism to study such unusual rise of stock prices of companies while such a rise is taking place,” the SIT said in its report titled ‘Misuse of exemption on long-term capital gains tax for money laundering’.

“Once such instances are detected, SEBI should invariably share this information with the Central Board of Direct Taxes (CBDT) and Finance Intelligence Unit (FIU),” it said.

“Enforcement Directorate (ED) should then be informed to take action under the Prevention of Money Laundering Act for the predicate offences,” the report added.

The SIT cited SEBI investigations on companies with poor financial fundamentals in terms of past income raising huge capital by allotment of preferential shares to various entities. This is followed by a sharp rise in share prices, once the preferential allotment is done, through circular trading.

The market regulator has also been asked to put in place a mechanism to monitor the beneficiaries of participatory notes.

“Obtaining information on “beneficial ownership” of P-notes is of crucial importance to prevent their misuse. SEBI needs to examine the issue and come up with regulations where the ‘final beneficial owners’ of P-notes are known,” the SIT said.

Regarding P-notes, the SIT noted that based on the data provided by SEBI, a major chunk – over 31 percent – of outstanding Offshore Derivative Instruments (ODIs) invested in India are from Cayman Islands.

“This translates to roughly Rs.85,006 crore. The Cayman Islands had a population of 54,397 in 2010, according to Wikipedia. It does not seem conceivable that a jurisdiction with a population of less than 55,000 could invest Rs.85,000 crores in one country,” the report said.

The SIT further said that the Serious Fraud Investigations Office (SFIO) should mine data to track shell companies and share information with other agencies like CBDT, ED and FIU.

Norms are needed to check the menace of betting in cricket since a massive amount of black money is used and generated in this way, the SIT said

(IANS)

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Court Asked Arvind Kejriwal if He Lied about Calling Arun Jaitley, a Crook

The court asked Kejriwal to abstain from "scandalous" and "indecent language"

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Arvind Kejriwal
Delhi Chief Minister Arvind Kejriwal. Wikimedia
  • Arvind Kejriwal was asked to clarify if he lied about calling Finance Minister, Arun Jaitley a crook
  • The Chief Minister is now supposed to offer his defense to the Delhi High Court
  • Jethmalani says that the Chief Minister owes him two crores for his appearances

New Delhi, Aug 23, 2017:  Aam Admi Party Chief Arvind Kejriwal was asked to clarify if he lied in court by pretending that he did not ask for abusive language to be used against Finance Minister Arun Jaitley, mentioned NDTV report.

Previously, Kejriwal stated in the court that he had not instructed his former counsel Ram Jethmalani to use  “crook” to describe the union minister in court. But Jethmalani claims that the Chief Minister used harshly insulting words to attack Jaitley.

Jethmalani declared that according to Jaitley, Kejriwal had misled the court by denying the allegations. In fact, he says Jethmalani has written to him to insist that was the case.
The Chief Minister is now supposed to offer his defense to the Delhi High Court.

In 2015, Jaitley sued Kejriwal and five top leaders of his Aam Aadmi Party for defamation after they accused him of corruption during his 13-year tenure as the top boss of the DDCA, the powerful cricket association that handles Delhi and its surrounding areas.  In two separate cases – criminal and civil – Jaitley has sought damages of 10 crores.

Also Read: Ram Jethmalani Exposes Arvind Kejriwal. Says, Kejriwal was Fixated on calling Jaitley Crooked 

During court the proceedings last month, Jaitley complained to Jethmalani’s language and said ‘Kejriwal’s team is delaying hearings in the Delhi High Court.’

The court asked Kejriwal to abstain from “scandalous” and “indecent language.”

After the Chief Minister said that he had not approved the abusive words, the lawyer riposted in a blog: “Ask your conscience how many times you used worse abuses than a mere ‘crook.’ You have hundred times asked me to teach this crook a lesson.”

Jethmalani says that the Chief Minister owes him two crores for his appearances. It seems that, in his new enmity with Kejriwal, he has become an indirect ally of Jaitley.


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Indian Army vows to take Revenge on Mutilation of 2 Soldiers by Pakistan

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Indian Army (representative image), Wikimedia

Jammu, May 3, 2017: Last week on Monday at 8:30 am, two Indian soldiers along with their captain were killed after Pakistani terrorists attacked an army camp in Kupwara.

The soldiers who were killed, trapped and ambushed were Naib Subedar Paramjeet Singh, an army soldier, and Prem Sagar, a Border Security Force constable. Indian army’s Northern command reported that Pakistan used rockets and mortar bombs on 2 posts along Line of Control where these soldiers were patrolling.

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“Pakistan fired unprovoked on two army posts in the Krishna Ghati sector in Poonch along the Line of Control,” said the army. Following Pakistan firing that killed 2 soldiers, India retaliated with heavy mortar firing immediately.

Pakistan mutilated 2 Indian soldiers along the Line of Control when they were patrolling.(Twitter)

Calling India’s allegation as “false”, Pakistan has denied violating ceasefire and disrespecting Indian army. After India vowed revenge for the mutilation of its two soldiers killed in firing along the LOC and promised to respond strongly as well as firmly.

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According to NDTV report, Indian Union Minister Arun Jaitley has described the mutilation as “reprehensible and inhuman” calling them to be unfit even during wars. He further continued, “the incident is set to worsen ties between the two countries, which have been deeply strained after repeated ceasefire violations by Pakistan, the terror attacks in Jammu and Kashmir and the death sentence handed to Indian man Kulbhushan Jadhav, who was arrested in Pakistan last year.”

It is to be noted that last year in September, Indian soldiers have crossed the Line of Control late at night to attack staging areas for terrorists in Pakistan-Occupied Kashmir and returned home safely before dawn under the banner of “Surgical strike”. This action came 10 days after “Uri Pakistani attacks” which left 19 military personnel dead.

– prepared by Himanshi Goyal of Newsgram, Twitter: @himanshi1104

 

 

 

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15 Public Sector Firms in India violate Sebi’s Norms of appointing atleast One Woman Director on their Respective Boards

These rules are aimed at ensuring gender diversity in boardrooms

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Fifteen PSUs including ONGC and Indian Oil Corporation failed to comply by Sebi's gender diversity directives, Wikimedia

New Delhi, Dec 16, 2016:  Sebi’s regulatory norms of appointing at least one woman director on the respective billboards till December 13, has not been followed by as many as 15 public sector firms including ONGC and Indian Oil Corporation. Reports of it went to the Parliament on Friday.

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As per the new Sebi directives and the Company’s Act, 2013 all the listed firms were required to have at least one woman director on their boards from April 1, 2015. These rules are aimed at ensuring gender diversity in boardrooms.

As on December 13, 2016, Bharat Petroleum Corporation, GAIL, Power Finance Corporation, Rural Electrification Corporation, Chennai Petroleum Corporation, Scooters India, MMTC and Fertilisers & Chemicals Travancore have not appointed women directors on their board, Corporate Affairs Minister Arun Jaitley said in a written reply to Lok Sabha, mentioned PTI.

It was mandatory for PSUs to appoint one women director to their boards
Arun Jaitley Wikimedia

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Other non-complaint firms are State Trading Corporation of India, Hindustan Photo Films Manufacturing Company, Bharat Immunologicals & Biologicals Corp, Rashtriya Chemicals and Fertilisers and Neyveli Lignite Corporation, he added.

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According to the Minister 169 and 1,106 companies listed on the NSE and BSE respectively had not appointed women directors as on September 30, this year. To avert this discrimination by acting against listed firms without a mandatory woman director, Sebi in April 2015 had announced a minimum Rs 50,000 fine. Further action against non-compliance of the directives include action against promoters and directors, if they remain non-compliant beyond six months.

A four stage penalty structure is announced by the market watchdog wherein fines would increase with the passage of time. It had asked the stock exchanges to levy the fines as the violation relates the Listing Agreement.

prepared by Saptaparni Goon of NewsGram. Twitter: @saptaparni_goon