RBI examining virtual currencies’ legal & security aspects: FM
12 Feb 2014 12:39 AM GMT
‘The RBI is presently examining the issues associated with the usage, holding and trading of virtual currencies, including bitcoins, under the extant legal and regulatory framework of the country, including foreign exchange and payment systems laws and regulations,’ Finance Minister P Chidambaram said in a written reply in the Rajya Sabha.
The Reserve Bank of India in last December had cautioned users, holders and traders of virtual currencies about potential financial, operational, legal, customer protection and security-related risks that they are exposing themselves to. Chidambaram said the public at large has been informed that creation, trading or usage of virtual currencies as a medium of payment are not authorised by any central bank or monetary authority.
‘No regulatory approvals, registration or authorisation has been obtained by entities concerned for carrying on such activities. As such, they may pose several risks to their users,’ the Finance Minister said. At least 93 virtual currencies are at present being used by people across the world over the internet, as also for some offline transactions, and their total valuation has reached $13 billion (over Rs 80,000 crore), out of which bitcoin alone accounts for over $9 billion, according to market estimates. After RBI and other central banks across the world warned financial intermediaries about dealing with virtual currencies through traditional channels, the buzz around such denationalised currencies, which are not backed by any assets, had tempered for some time.
Sebi files for 553 cos’ prosecution for illegal investment schemes
New Delhi: Capital market watchdog Sebi has filed for prosecution of 553 firms for running unauthorised collective investment schemes and action has also been initiated against many other entities, including Rose Valley and Alchemist groups.
The Securities and Exchange Board of India (Sebi) has filed for prosecution of 553 companies during 2000-2012, Minister of State for Finance Namo Narain Meena informed the Rajya Sabha on Tuesday.
In a written reply, he said action has been taken against them for ‘non-compliance of Sebi order for carrying out unauthorised/unregistered collective investment schemes’.
The companies against whom prosecution actions have been filed during the 2000-2010 period include AFL Agrotech, Accord Plantation, Four Season Farms, Gangotri Green Valley, Golden Projects, Canon Orchards, Ridah Farms, DMC International and Tofha Farmings.
Besides, Sebi has issued directions against 22 companies, including KBCL India Ltd, Ken Infratech Ltd, Osian's Connoissurers of Art Ltd and Sunplant Agro Ltd, for carrying out unauthorised collective investment schemes. According to the minister, action has been initiated against Alchemist, Prayag and Rose Valley entities.
Sebi received a complaint against Alchemist Capital Ltd alleging that the company has raised Rs 165 crore from 28,000 investors by way of issuance of redeemable preference shares in 2006. The matter is being examined by the market regulator, he said.
Action has been taken against Alchemist Infra Realty Ltd, Alchemist Holdings Ltd, Rose Valley Real Estates & Construction Ltd, Rose Valley Hotels & Entertainment Ltd and Prayag Infotech Hi-Rise Ltd.
Collective investment schemes come under the regulatory ambit of Sebi.
In recent times, there have been many instances of people getting duped by fraudulent money pooling schemes and the government is taking various measures to curb the menance.
The Reserve Bank of India in last December had cautioned users, holders and traders of virtual currencies about potential financial, operational, legal, customer protection and security-related risks that they are exposing themselves to. Chidambaram said the public at large has been informed that creation, trading or usage of virtual currencies as a medium of payment are not authorised by any central bank or monetary authority.
‘No regulatory approvals, registration or authorisation has been obtained by entities concerned for carrying on such activities. As such, they may pose several risks to their users,’ the Finance Minister said. At least 93 virtual currencies are at present being used by people across the world over the internet, as also for some offline transactions, and their total valuation has reached $13 billion (over Rs 80,000 crore), out of which bitcoin alone accounts for over $9 billion, according to market estimates. After RBI and other central banks across the world warned financial intermediaries about dealing with virtual currencies through traditional channels, the buzz around such denationalised currencies, which are not backed by any assets, had tempered for some time.
Sebi files for 553 cos’ prosecution for illegal investment schemes
New Delhi: Capital market watchdog Sebi has filed for prosecution of 553 firms for running unauthorised collective investment schemes and action has also been initiated against many other entities, including Rose Valley and Alchemist groups.
The Securities and Exchange Board of India (Sebi) has filed for prosecution of 553 companies during 2000-2012, Minister of State for Finance Namo Narain Meena informed the Rajya Sabha on Tuesday.
In a written reply, he said action has been taken against them for ‘non-compliance of Sebi order for carrying out unauthorised/unregistered collective investment schemes’.
The companies against whom prosecution actions have been filed during the 2000-2010 period include AFL Agrotech, Accord Plantation, Four Season Farms, Gangotri Green Valley, Golden Projects, Canon Orchards, Ridah Farms, DMC International and Tofha Farmings.
Besides, Sebi has issued directions against 22 companies, including KBCL India Ltd, Ken Infratech Ltd, Osian's Connoissurers of Art Ltd and Sunplant Agro Ltd, for carrying out unauthorised collective investment schemes. According to the minister, action has been initiated against Alchemist, Prayag and Rose Valley entities.
Sebi received a complaint against Alchemist Capital Ltd alleging that the company has raised Rs 165 crore from 28,000 investors by way of issuance of redeemable preference shares in 2006. The matter is being examined by the market regulator, he said.
Action has been taken against Alchemist Infra Realty Ltd, Alchemist Holdings Ltd, Rose Valley Real Estates & Construction Ltd, Rose Valley Hotels & Entertainment Ltd and Prayag Infotech Hi-Rise Ltd.
Collective investment schemes come under the regulatory ambit of Sebi.
In recent times, there have been many instances of people getting duped by fraudulent money pooling schemes and the government is taking various measures to curb the menance.
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