Supreme Court tells SEBI : Get tough with cheating companies

Focus_on_Fraud

*supreme court tell sebi take action on illegal money collection companies from public

New Delhi:The Supreme Court has asked the Securities and Exchange Board of India (SEBI) to deal sternly with companies indulging in manipulative and deceptive practices to send a clear message that market abuse will not be tolerated in the country.

“SEBI, the market regulator, has to deal sternly with companies and their directors indulging in manipulative and deceptive devices, insider trading and the like or else they will be failing in their duty to promote orderly and healthy growth of the securities market,” a bench of justices K. S. Radhakrishnan and Dipak Misra said.

The judgment assumes importance as it has come at a time when chit fund companies and the Sahara group are making headlines for illegally collecting money from people by promising attractive returns.

“Message should go that our country will not tolerate market abuse and that we are governed by the rule of law.

Fraud, deceit, artificiality, SEBI should ensure, have no place in the securities market of this country and market security is our motto,” it said.

People with power and money and in management of the companies, unfortunately, often commanded more respect in society than the subscribers and investors in their companies, the court observed.

“Companies are thriving with investors’ contributions but they are a divided lot. SEBI has, therefore, a duty to protect investors, individual and collective, against opportunistic behavior of directors and insiders of the listed companies so as to safeguard market’s integrity,” the bench said.

The apex court said that market abuse had now become a common practice in India, and SEBI was duty bound to protect genuine investors.

“SEBI has the duty and obligation to protect ordinary genuine investors and it is empowered to do so under the SEBI Act so as to make the security market a secure and safe place to carry on the business in securities,” the bench said.

The apex court said economic offenses affect not only the country’s economic growth, but also hamper inflow of foreign investment by genuine investors and casts a slur on India’s securities market.

“…market abuse has now become a common practice in the India’ security market and, if not properly curbed, the same would result in defeating the very object and purpose of the SEBI Act, which is intended to protect the interests of investors in securities and to promote the development of securities market,” the bench said.

 

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12 responses

  1. kolkata weir industries limited

  2. […] Supreme Court tells SEBI : Get tough with cheating companies (themlmindia.wordpress.com) […]

  3. I was invest money because agent & me also saw MCA server about company.why & how company getting in MCA server.Now suprim court told fake company,this is wrong told by who??
    Can i getting my money & which procedure will take?
    Detail mailing me about kwil company.
    Thanking you…

  4. Hi,

    I am Santosh Shav son of Banshi Shav from village bejra Jharkhand. I opened F/D Account for 50,000 in Basil International in 2010. In Recent few months ago I have found my money after maturity on right time. I would like to recommend for invest money in Basil International further.
    Thanks
    Santosh Shav

  5. Hi
    I am ashok Vishwkrma Son of Chootu Lala Vishwkarma From Bada Pichari Kalyanpur Dhanbad. I had Opened FD account in Basil International Dhanbad Branch. My Account Details is 41775. I had got my money from Basil International after Maturity. In period of money processing I have not suffered any kind of problem form Basil International limited. And I am happy to work with this company.

    thanks

  6. Hi I am sahabul islam Son of abul hossain ansari I had opened agent cod 679 of max wealth infracon india ltd domkal branch.i dont no maturity of march 2013.

  7. Hi I am Rowsonara khatun daoughter of Isanaddin s.k . I had opened agent cod 1428 of max wealth infracon india ltd. domkal branch I donot maturity of march 2013

    1. Hi im sahabul islam son of abul hossain ansari. I had opened agent cod 679 of max wealth infracon india ltd domkal branch i donot maturity of march 2013.

  8. government of india minister sh.sachin pilot issued list that m/s pacl is a bogus chitfound froud company on 30.4.2013.But roc jaipur regulate this chitfound froud company under name of pearls under section changed the name of company act.1956 since from 1996 to till date.so roc jaipur is only responsible to regulate chitfound froud company under the name of pearls.

  9. Hi i am angilajoshi.
    Few years ago i have invested money in basil internatinal limited dhanbad branch. After maturity i got my money without any problem and issue. I am thankful to basil.

  10. Hello
    1 month ago a company which name shrisaiassociation took money for membership and security but now this company employ who is tell me her name komal not refund my money and not giving job ,when i say for meet he refused and not give his manager or any other phone no ,please tell me what i do now

  11. government of india regulate bogus chitfound froud company m/s pacl under the name of pearls since from 1996 to till date.government of india did not take action on this froud company and playing a cheating role with Indians.government of india regulate the chitfound froud company under company act.1956 under section changed the name of company.government of india registered two different companies in a different roc office.After some time one company changed its name into anothrer company changed brand name and became one company.so it is a system of chitfound froud under company act.1956.pacl is
    a proof government of india regulate biggest chitfound froud with indians.so our government of india working for chitfound froud company not for India.so indians peoples should stand against this froud system.

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