Mumbai : Markets regulator Securities and Exchange Board of India (Sebi) declared the defunct commodity subsidiaries of broking firms Anand Rathi (ARCL) and Geofin Comtrade (formerly Geojit Comtrade) (GCL) “not fit and proper” in relation to the Rs 5,600-crore National Spot Exchange Ltd (NSEL) scam. Earlier, the regulator had last week taken a similar action against the commodity arm of leading equity brokers Motilal Oswal Financial Services and India Infoline.
In two separate orders, Sebi found the commodity arms of ARCL and Geofin guilty of gross violation of provisions of the erstwhile Forward Contract and Regulation Act 1972 (FCRA). After the merger of the commodity markets regulator Forward Markets Commission (FMC) with the Sebi in September 2015, the regulator had issued showcause notices to these brokers seeking to know why they should not be declared “not fit and proper” for their involvement in the NSEL scam.
Apart from Sebi, the Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and the Economic Offences Wing of the Mumbai Police (EOW) have been investigating the NSEL case.
“The notices had violated the provisions of FCRA and made false representation of assured/risk-free return, arbitrage opportunity in the spot market by way of paired contracts, making assurances with risk-free returns on assured collateral of commodities. Also, these noticees had done client code modifications with manipulative artifice. Hence, these noticees are not fit and proper person to hold, directly or indirectly, the certificate of registration and therefore, cease to act, directly or indirectly as commodity derivative brokers,” said the Sebi orders.
The regulator ordered that with their involvement in NSEL scam, their reputation has seriously eroded. “Thus, Sebi finds the noticees not fit and proper to be granted registration to operate as the commodity derivatives broker,” the order stated.
Interestingly, some of these brokers already shut down their commodity broking firms immediately after the NSEL scam erupted in 2013 and forayed into this business again under the new company name. The new entity has been generating sizeable business in the commodity derivatives markets with the membership of leading commodity exchanges.
ARCL and GCL could not be immediately reached for their comments. Attempts to reach Anand Rathi, chairman of the Anand Rathi Group, did not elicit any response.
Markets sources fear similar actions on the remaining broking firms named by various investigating agencies for their alleged involvement in the NSEL scam.
Earlier, the erstwhile regulator FMC had declared NSEL, along with its directors and promoters not “fit and proper person”.
The stock price of Motilal Oswal Financial Services declined in early trade on Tuesday by 1.78 per cent to trade at Rs 589 apiece. Also, the share price of IIFL Holding fell by 3.44 per cent to Rs 349 apiece in early Tuesday trade. The decline in both stocks was the second day in continuation.
US slaps sanctions on Myanmar army chief over Rohingya abuses
Washington: The United States announced sanctions on Myanmar’s military Commander-in-Chief Min Aung Hlaing and other military leaders due to their role in the “ethnic cleansing” of the Rohingya minority.
The State Department said it took action against army chief Min Aung Hlaing and three others after finding credible evidence they were involved in the violence two years ago that led about 740,000 Rohingya to flee across the border to Bangladesh.
“With this announcement, the United States is the first government to publicly take action with respect to the most senior leadership of the Burmese military,” Secretary of State Mike Pompeo said in a statement.
“We remain concerned that the Burmese government has taken no actions to hold accountable those responsible for human rights violations and abuses, and there are continued reports of the Burmese military committing human rights violations and abuses throughout the country,” he said in a statement.
Also sanctioned were Deputy Commander-in-Chief Soe Win, Brigadier General Than Oo and Brigadier General Aung Aung as well as the families of all four officers.
Buddhist-majority Myanmar refuses to grant the mostly Muslim Rohingya citizenship or basic rights and refers to them as “Bengalis,” inferring that the Rohingya are undocumented immigrants from Bangladesh.
UN investigators say the violence warrants the prosecution of top generals for “genocide” and the International Criminal Court has started a preliminary probe.
Pompeo, issuing a statement during a major meeting at the State Department on religious freedom, repeated the 2017 finding of his predecessor Rex Tillerson that the killings amounted to “ethnic cleansing” – while stopping short of using the term genocide.
The sanctions notably do not impact Aung San Suu Kyi, the former political prisoner who has risen to become the country’s de-facto civilian ruler.
The Nobel laureate has been criticised over her “indifference” to the atrocities committed by the military against the Rohingya, considered “the most prosecuted minority in the world”.
The sanctions are the most visible sign of US disappointment with Myanmar, formerly known as Burma, since it launched political reforms in 2011, with the military rulers reconciling with Washington and eventually allowing an elected political leadership.
Matthew Smith, the cofounder and Chief Executive Officer at Fortify Rights, welcomed the sanctions but said the US could do more.
“This is good news if this is the first measure the US will take in addressing genocide in Myanmar against the Rohingya people. It’s bad news if this is all secretary Pompeo and the US administration are planning to do. We are hopeful they will do more,” Smith told Al Jazeera from Washington, DC.
“The impact [of the sanctions] can be serious. This will flag the responsibility of these individuals for international prosecutors, for example, the International Criminal Court, and it will give pause to business leaders going to Myanmar in doing business with military-owned enterprises.
US House Condemns Trump ‘Racist’ Tweets In Extraordinary Rebuke
WASHINGTON: In a remarkable political repudiation, the Democratic-led U S House voted to condemn President Donald Trump’s “racist comments” against four congresswomen of colour, despite protestations by Trump’s Republican congressional allies and his own insistence he hasn’t “a racist bone in my body.”
Two days after Trump tweeted that four Democratic freshmen should “go back ” to their home countries though all are citizens and three were born in the USA Democrats muscled the resolution through the chamber by 240-187 over the near-solid GOP opposition.
The rebuke was an embarrassing one for Trump even though it carries no legal repercussions, but the highly partisan roll calls suggests it is unlikely to cost him with his die-hard conservative base.
Despite a lobbying effort by Trump and party leaders for a unified GOP front, four Republicans voted to condemn his remarks: moderate Representatives Brian Fitzpatrick of Pennsylvania, Fred Upton of Michigan, Will Hurd of Texas and Susan Brooks of Indiana, who is retiring.
Also backing the measure was Michigan’s independent Rep. Justin Amash, who left the GOP this month after becoming the party’s sole member of Congress to back a Trump impeachment inquiry.
Before the showdown roll call, Trump characteristically plunged forward with time-tested insults. He accused his four outspoken critics of “spewing some of the most vile, hateful and disgusting things ever said by a politician” and added, “If you hate our Country, or if you are not happy here, you can leave!” echoing taunts long unleashed against political dissidents rather than opposing parties’ lawmakers.
The president was joined by House Minority Leader Kevin McCarthy of California and other top Republicans in trying to redirect the focus from Trump’s original tweets, which for three days have consumed Washington and drawn widespread condemnation.
Instead, they tried playing offense by accusing the four congresswomen among the Democrats’ most left-leaning members and ardent Trump critics of socialism, an accusation that’s already a central theme of the GOP’s 2020 presidential and congressional campaigns.
Even after two-and-a-half years of Trump’s turbulent governing style, the spectacle of a president futilely labouring to head off a House vote essentially proclaiming him to be a racist was extraordinary.
Underscoring the stakes, Republicans formally objected after Speaker Nancy Pelosi of California said during a floor speech that Trump’s tweets were “racist.” Led by Rep. Doug Collins of Georgia, Republicans moved to have her words stricken from the record, a rare procedural rebuke.
After a delay exceeding 90 minutes, No. 2 House Democrat Steny Hoyer of Maryland said Pelosi had indeed violated a House rule against characterising an action as racist.
Hoyer was presiding after Rep. Emanuel Cleaver of Missouri stormed away from the presiding officer’s chair, lamenting, “We want to just fight,” apparently aimed at Republicans.
Death toll due to Nepal floods reaches 67
Kathmandu: The death toll from the monsoon floods and landslides in Nepal has increased to 67, while 32 people were reported missing and over 40 others injured, officials said.
The Nepal Police said in a statement that the victims comprised 41 men and 26 women, reports Xinhua news agency.
“At least 1,445 people from different districts have been rescued successfully and evacuated to safer destinations,” the statement said.
According to the Home Ministry, around 35,000 people were affected by the disasters particularly in the low-lying areas known as Terai region. More than 20 of Nepal`s 77 districts were worst-hit due to the floods and landslides.
The Nepal Army, Nepal Police and Armed Police Force were deployed in the disaster-hit districts to carry out rescue and relief operations.
Residents were displaced after the swollen rivers breached the embankment and gushed into human settlements, especially in Province 2. Over 13,000 families were displaced in Province 2 alone where around 3,500 houses were completely damaged.
The provincial governments announced separate relief packages for the victims, including cash for the families of those who lost their members and free treatment of the injured. The local governments in coordination with different agencies distributed food items, clothes and tarpaulins to the highly affected communities.
The Health Emergency Operation Centre said that different medical teams with doctors were mobilized in the hard-hit districts to ensure health services to the affected people.
“There is a high risk of possible outbreaks of different water-borne diseases like diarrhea, dysentery, dengue, typhoid among others,” Ghanashyam Pokharel, health official at Epidemiology and Disease Control Division, told Xinhua.