SEBI mulls ‘approver’ clause to aid in probes
SEBI is likely to introduce the concept of an ‘approver’ for offenders in securities market who could help the regulator blow the lid off a major fraud or scam. An offender can expect to get a less-serious charge or a lenient sentence in exchange for vital information that could help crack the case. A committee headed by former Supreme Court judge AR Dave has recommended that the Securities and Exchange Board of India introduce a ‘confidentiality clause’ in settlement of cases. This will culminate in a variant of the ‘approver’ concept, which is in place in the US, and also employed by Indian agencies such as the CBI, legal experts told Business Line.
Check NPA frauds or face legal action: FinMin to PSBs
In a stern warning to bankers, the Finance Ministry has asked chief executives of public sector banks (PSBs) to check all NPA accounts exceeding 50 crore for fraud or they could face criminal conspiracy charges, according to official sources. This missive comes in the light of the arrest of Bhushan Steel’s erstwhile promoter Neeraj Singal by the Serious Fraud Investigation Office (SFIO) for allegedly siphoning off funds. The sources said that bankers could be held accountable under Section 120B of Indian Penal Code if they fail to report fraud in an account which is later unearthed by investigating agencies, sources said.
NSEL case: High Court panel confirms claims of only 650 crore
The Bombay High Court-appointed committee headed by Justice VC Daga to look into the scam at the National Spot Exchange has confirmed claims of only 650 crore from 4,697 entities. This is far lower than the initial claim of 5,600 crore from about 13,000 entities. In fact, the amount confirmed by the committee is even lower than the 621 crore submitted by the troubled exchange, which shut operations abruptly in 2013. Investors have not received their dues since November 2014. In a detailed report submitted to the High Court late last month, the Committee stated that it has received claims for another 439 crore from members with supporting documents which need to be scrutinized further.
EC moves SC on paid news during elections
The Election Commission of India has moved the Supreme Court to take on the menace of paid news during elections. The EC has filed a Special Leave Petition in the apex court challenging the May 2018 Delhi High Court order that set aside its disqualification of BJP’s Narottam Mishra on the grounds of paid news, ET has learnt. Sources in the ECI confirmed that the petition was filed last week. The Delhi HC order not only overturned the EC’s order on Mishra’s disqualification, but it also stated that the Commission’s remit is limited to election expenditure incurred by candidates and not content of speech.
Recapitalisation plan will boost PSBs, but stress may persist, says Moody’s
Moody’s Investor Service, on Tuesday, said that the government plan to provide capital support to state-owned banks will improve their capital position but the stress will continue. “The large-scale recapitalization plan, which was meant to improve capital buffers and loan-loss reserves and also support sufficiently strong loan growth, will now be just enough to shore up capital ratios above regulatory requirements because the banks’ capital shortfalls have grown larger than the government’s initial projection,” said Alka Anbarasu, Moody’s Vice-President and Senior Credit Officer.
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