Tags:
Journalism of Courage
Show cause notices
SEBI has finally sent out show causes notices on the scandalous cover-up of the payment crises documented at length by this paper of June last year, to three BSE office bearers and the NSE. Interestingly, even before the exchanges reply to the notice, some unnamed SEBI officials have been quoted in various newspapers playing down the importance of their own findings and dismissing their significance. After all, SEBI cleared the BSE depository just two days before the notice was issued. The question then is, whether SEBI is at all serious about cleaning up the functioning of the bourse. Interestingly, some senior SEBI officials too are beginning to chafe at the regulator8217;s ambivalence. Meanwhile, massive price rigging has openly resurfaced in the B1 and B2 scrips of the exchange, with the strangest companies recording 52 week highs on huge volumes. Again, most of the action is attributed to a set of B2 specialists and two top directors of the exchange who are traditionally knownfor their rigging skills.
They are not buying
IDBI Bank learnt the hard way that not only are investors not too keen on financial institutions, they aren8217;t too keen on their associate organisations either. IDBI Bank which went public last week was unable to sell its shares even at Rs 18. On issue closing day last week, IDBI8217;s top brass frantically called industrialists and forced them to subscribe. A few calls later, the issue was fully subscribed.
Bus to Manasarovar
After Vajpayee8217;s landmark bus ride to Pakistan it8217;s time for a similar effort with China. The PM should get China to open up the road to Manasarovar 8212; the holiest of all the holy places for the Hindus. Dancer Protima Bedi8217;s death drew nationwide attention to the dangerous 30-day trek, the main route to Kailash today. Few know that there is a short motorable route directly from Leh to Manasarovar. Various Kashmir governments have worked hard to have the road opened. The potential religious tourism could change Jamp;K8217;s economy.The Chinese too will make big money 8212; they charge 500 from each of the few thousand pilgrims who are permitted to trek to Kailash. But a bus to Manasarovar will bring in the richest Indians from around the world for a darshan.
Nimbu shakti
At last week8217;s Hindustan Lever results presentation, an analyst raised the issue of it8217;s nimbu shakti8217; claim. It may be recalled that HLL had to admit its detergent had no nimbu8217;, only lime perfume, with the cleaning done by LAB. The HLL chief said, 8220;In advertising, there is licence and there is puffery8221;; HLL, he said, had used the former and would vindicate its claim. The law is apparently with them. Apart from the US, it seems, the world-over, advertisers can suggest product benefits on the basis of incorporation, not necessarily on actual benefit. So you can add traces of egg in a shampoo, and claim it as an egg shampoo though it adds little value. Better still, register a trademark like nimbu shakti8217; which suggests cleansing qualitiesbut doesn8217;t actually say so directly. Clearly, gullible consumers have a lot to learn.
Tailpiece
One of the most astounding suggestions in recent times has come from S.A.Dave, former chairman of SEBI and the UTI. The man who fought hard to say that UTI was unique and should be allowed to assure returns, has now said that even provident funds, whose money is so far invested most safely should not assure returns. That suggestion would have been fine if PF investors had a choice about which fund to invest their money in or could object to the pre-emption of their funds for social causes. Until then, an assured return is surely their right.
The author8217;s e-mail: suchetadalalyahoo.com
