Page 16 - Banking Finance September 2018

ROUNDUP

India GDP to grow at EPFO to be sole regulator for provident funds
7.5% in 2019-20: IMF A Parliamentary panel has suggested that retirement fund body EPFO should
act as the sole regulator for all categories of provident
India's gross domestic product (GDP) funds particularly private PF trusts. "The committee has
is poised to strongly recommended that the government if re-
grow by 7.3% quired, may amend various Acts and authorise Employ-
in the 2018-19
ees' Provident Fund Organisation (EPFO) to act as the
fiscal and 7.5% sole regulator for all categories of provident funds."
in 2019-2020
on strengthening of investment and It said that ministries of finance and labour informed that a consensus has been
robust private consumption, the IMF developed in the government departments that the EPFO should act as a sole
said in its latest projection. The In- regulator for all such provident funds trusts including those managed by the
ternational Monetary Fund, in the exempted, excluded and other categories of organisation or establishments. The
report, said the near-term macro- Committee is convinced that a strong regulatory system should be in place for
all PF trusts.
economic outlook for India is
"broadly favourable."
Panel recommends more power for SEBI
UTI Mutual Fund CEO A committee set up by market regulator Securities and Exchange Board of In-
dia has suggested empowering the authority with
quits powers to intercept phone calls so that it can crack
Amidst the ongoing spat with the down on financial fraud. The Committee on Fair Mar-
board and a pending case seeking his ket Conduct, which was headed by former law secre-
continuance as the head of the insti- tary TK Viswanathan, recommended that the regula-
tution till the IPO is through, Leo Puri tory authority be given powers on par with the Cen-
today resigned as the managing di- tral Board of Direct Taxes.
rector and chief executive of UTI
SEBI is currently allowed to access call data records during investigations. "The
Mutual Fund as his five-year contract
committee recommends that SEBI should seek power to intercept telephone
came to an end. According to
calls and electronic communication, to collect strong evidence against repeti-
sources, UTI has asked Imtaiyazur
tive offenders in cases including those of insider trading, front running or mar-
Rahman, the chief financial officer,
ket manipulation," the committee said. The document emphasised the need to
to head the organization till a new
person is named. ensure proper checks and balances in the execution of this move.
The panel also recommended empowering the watchdog with powers to take
Over 31,500 realty "direct action against perpetrators of financial fraud". The committee suggested
that listed firms should incorporate policies to address leaks of unpublished price-
projects registered under sensitive information to counter manipulative and unfair trade practices.
RERA "The listed company should have written policies and procedures for such in-

A year after the Real Estate (Regu- quiries, which are duly approved by board of directors of the company," it said.
lation and Development) Act 2016 "Listed companies should also have whistle-blower policies that make it easy
(RERA) came into force, more than for employees to report instances of leak of unpublished price sensitive infor-
31,500 real estate projects have mation."
been registered in the country, said
a new report by Grant Thornton. Of Sebi unveils list of 1,677 defaulters
the total, 54 per cent are in As many as 1,677 entities, including individuals, failed to
Maharashtra alone. About 25,000 pay penalties imposed by Sebi till the end of May 31, 2018
developers and 23,000 agents have "for non-payment of penalty imposed by Sebi through or-
registered themselves under RERA ders passed up to December 31,2017" has been published
the report said. on the regulator's website.

16 | 2018 | SEPTEMBER | BANKING FINANCE