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CFMA accuses AMFI of protecting Franklin Templeton MF against EOW FIR

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Sebi tweaks MF norms, Rs 35K cr to move out of large caps to mid and small caps
Sebi tweaks MF norms, Rs 35K cr to move out of large caps to mid and small caps

The Chennai Financial Markets and Accountability (CFMA), an investor group, on Thursday accused the Association of Mutual Funds in India (AMFI), a nodal association of mutual funds across India, of protecting Franklin Templeton Mutual Fund (FTMF) and its senior management against an FIR registered with the Economic Offences Wing of Chennai Police.

The CFMA alleged that the AMFI, the body claims to protect and promote the interests of mutual funds and their unitholders, has been a mute spectator ever since the FTMF scam ballooned to a whopping Rs 28,000 crore broke in April this year, and has now suddenly rushed to defend the indefensible fund house by calling an FIR registered against it as “dangerous and undesirable precedent.”

The AMFI has urged market regulator SEBI to intervene in the matter since it has “vast jurisdiction containing administrative, civil and penal domains” and prevent the case from “getting translated into a criminal investigation.” Notably, it further requested the SEBI to exercise its statutory powers to shield one of its members – FTMF – and to insulate the MF industry from any undesirable and unwarranted precedent.

By covering up the misdeeds of FTMF’s and not saying even a word in favour of the unitholders, the CFMA said, the AMFI has failed to address the grievances of investors aggrieved by the freezing of six of the debt funds of FTMF.

According to the CFMA, the AMFI is undermining a lawfully registered FIR against FTMF when it is not even privy to either the Forensic audit report or the internal management of FTMF unless its President Sanjay Sapre, who is on the Board of Association of National Exchanges of Members of India, has briefed the AMFI with sketchy details.

It noted that the AMFI, which is acting against the interests of FTFM unitholders, wants SEBI being the market regulator to govern and execute all actions, including criminal cases, whereas it is well known that such powers rest with the police to take cognizance of, and protect the rights of citizens who complain of financial loss by way of fraud and criminal breach of trust.

The CFMA alleged that the AMFI is deliberately feigning ignorance about the fact that banks, which are regulated by the RBI, get prosecuted by law enforcement agencies like the EOW or CBI in case of criminal cases involving the loss to depositors, as in the case of Yes Bank, DFHI, PMC Bank in recent times and also in UTI Mutual Fund some years back.

The investor group pointed out that the AMFI is turning a blind eye to the fact that the FIR was registered in full fairness and transparency. The matter was discussed in the Karnataka High Court and the EOW, Chennai, was given enough time to investigate the matter following which it found merit in registering the FIR. By objecting to the FIR, FTMF is casting aspersions on the views of the Karnataka High Court and the authority of the EOW as well.

Interestingly, it highlighted, the AMFI has given clean chit to FTFM without even waiting for forensic report, police investigation and the Karnataka High Court, the way the then Board of ICICI Bank gave clean chit to its erstwhile MD and CEO Chanda Kochhar.

The CFMA expressed its concern over the AMFI’s complete lack of empathy towards three lakh investors whose over Rs 28,000 crore is stuck amidst fears of a head-cut of 80 per cent which means a loss of Rs 20,000 crore. In doing so, the AMFI is going against its very core objective of being a self-regulatory organisation, it said adding that the performance of bodies like the AMFI itself needs closer examination to stop the recurrence of risks like FTMF.

With so much power to protect the interests of the investors, it pointed out, the SEBI and the AMFI are unfortunately seen protecting mutual funds, their employees, their Board of asset management companies and trustees instead of the unitholders. The CFMA suggested that the AMFI should not obstruct the process of law in a sub-judice matter and also not use the SEBI to influence the judiciary.

Meanwhile, the CFMA is contemplating filing a class-action suit against the global fund house for recovery of money and to claim damages, and has also urged all aggrieved investors to come together for filing the class-action suit.

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CMS launches AI-automated ATM security software ‘Algo’

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SBI ATM. (File Photo IANS)
SBI ATM. (File Photo IANS)

Mumbai, Oct 14 (IANS) CMS Info Systems (CMS) has announced the launch of fully automated, Artificial Intelligence-powered ATM security software application ‘Algo’.

CMS Algo is an end-to-end security encrypted a fool-proof solution to prevent ATM frauds at the time of cash replenishment or maintenance, the company said in a statement.

The application is machine-agnostic and can operate on any ATM manufactured by any OEM.

Rajiv Kaul, Executive Vice Chairman, Chief Executive Officer and Whole-time Director of CMS Info Systems, said: “This application can run on any ATM across the world and helps in fraud prevention. The solution is cost-effective in the back-end and low cost in the front-end.”

“The biggest saving is the reduction of fraud, no requirement of a call centre, and restricted access to data and premises,” he said.

He noted that the company has deployed Algo on 52,000 ATMs in India.

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CCI okays Tube Investments’ stake buy in CG Power

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Competition Commission of India
Competition Commission of India

New Delhi, Oct 14 (IANS) The Competition Commission of India (CCI) has approved the acquisition of shares in CG Power and Industrial Solutions Ltd by Tube Investments of India Ltd.

The proposed combination envisages acquisition of more than 50 per cent of the equity share capital of CG Power and Industrial Solutions Ltd (CG Power) by Tube Investments of India Ltd (TIIL).

TIIL is a listed entity and is part of Murugappa group. It has three business verticals including engineering, metal formed products and bicycles. It is engaged in the manufacture of a wide range of products for automotive, railway, construction, mining and agriculture industries.

Also a listed entity, CG Power has two major business units — power systems and industrial systems.

The power systems business unit focuses on power transmission, distribution, power solutions, setting up of integrated power systems among others.

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Uber hires Amazon veteran to lead mobility teams in Bengaluru

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Manikandan Thangarathnam
Manikandan Thangarathnam

Uber on Thursday announced it hired Amazon veteran Manikandan Thangarathnam as senior director to lead all rider and platform engineering teams in Bengaluru.

Uber said it is also hiring 85 more engineers in the country. This is in addition to hiring 140 engineers the ride-hailing service announced last month.

“As the world steps into a new normal, adaptability is going to be a key aspect to usher in growth. I look forward to leading the bright minds at Uber and innovating together for the world, one ride at a time,” said Mani.

At Amazon, Mani helped build several core platforms and products.

He led engineering efforts for the Amazon Appstore and was instrumental in bootstrapping the tech major’s Chennai office and building a vast team of engineers.

The Rider mobility team works on the challenge of enabling the next billion trips by building new services including high capacity vehicles (Uber bus), and car rentals, among others.

The company said the Marketplace team is building a highly-available and scalable self-serve gateway to configure, manage, and monitor Application Programming Interfaces (API) of every business domain at Uber.

Uber recently hired another Amazon veteran Jayaram Valliyur as senior director to lead its global finance technology team, spread across multiple geographies.

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OnePlus investing Rs 100 crore to boost retail footprint in India

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OnePlus to launch 2 Nord smartphones on Oct 26
OnePlus to launch 2 Nord smartphones on Oct 26

Smartphone maker OnePlus is committed to invest Rs 100 crore towards deeper market penetration by taking premium offline experience beyond metro cities and expanding its reach through new online and offline retail partnerships, a top company executive said on Thursday.

With over 5,000 offline stores including partnered stores across the country, the smartphone maker is planning to scale up to more than 8,000 stores in the coming quarters, Navnit Nakra, VP and Chief Strategy OnePlus India told IANS.

“At present, we have over 30 OnePlus experience stores across India and will be opening 14 new experience stores in the next six months.

“We’ll launch our biggest experience store globally, the OnePlus Nizam Palace in Hyderabad later this year. We are also working towards covering 100 cities through our service centre network in the next year,” Nakra informed.

The smartphone maker launched its India R&D centre in 2019 and is committed to achieve long-term growth in the country.

Currently, the company has 300 employees in the R&D team and hope to double that number in the coming months.

Nakra said that India continues to be a key market for OnePlus since the brand’s entry in 2014.

“We began our commitment to Make in India initiative in February 2018 and since then, we have been manufacturing our devices in the country. We have also commenced the manufacturing of the OnePlus TVs and OnePlus Nord in India,” Nakra told IANS.

By 2021, all OnePlus TVs will be manufactured locally in India.

“On our smart TV portfolio, we commenced the manufacturing of the Y series in India and by 2021, all OnePlus TVs will also be manufactured locally including the Q and the U series,” Nakra informed.

He said that 100 per cent of OnePlus smartphones are being manufactured in India including OnePlus 8 series, OnePlus Nord and the recently launched OnePlus 8T.

OnePlus has launched its new flagship 5G smartphone the ‘OnePlus 8T’ with 120Hz Fluid AMOLED display and quad-camera set up, in India.

The OnePlus 8T will be available in two colours, aquamarine green and lunar silver at Rs 45,999 (12GB RAM+ 256GB internal storage) and Rs 42,999 (8GB RAM+128GB internal storage).

“OnePlus is consistently exploring opportunities to fuel its growth and meet the needs of more users, by starting to strategically diversify into new product categories and new price points but, at the same time, not compromising on our OnePlus promise,” Nakra told IANS.

OnePlus Nord series is also likely to get new entrants this month, according to multiple reports.

The rumoured OnePlus Nord N10 5G and OnePlus Nord N100 are said to be launching as soon as the end of October, first in the US market.

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Sensex in red amid volatility on global cues

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Bombay Stock Exchange (BSE). (File Photo: IANS)
Bombay Stock Exchange (BSE). (File Photo: IANS)

Amid a largely volatile trade, the key Indian equity indices traded in negative on Thursday morning.

Weakness across Asian markets and fading hopes of a further stimulus in the US, weighed down on the investor sentiments, analysts said.

At 10.25 a.m., Sensex was trading at 40,643.97, lower by 150.77 points or 0.37 per cent from its previous close of 40,794.74.

It opened at 41,048.05 and has so far touched an intra-day high of 41,048.05 and a low of 40,541.13 points.

The Nifty50 on the National Stock Exchange (NSE) was trading at 11,953.30, lower by 17.75 points or 0.15 per cent from the previous close.

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US stocks drop as stimulus hopes wane

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New York Stock Exchange. (File Photo: IANS)
New York Stock Exchange. (File Photo: IANS)

Wall Street’s major averages finished lower on Wednesday as investors grew concerned over the uncertain fate of a US coronavirus stimulus deal.

The Dow Jones Industrial Average slid 165.81 points, or 0.58 per cent, to 28,514.00. The S&P 500 fell 23.26 points, or 0.66 per cent, to 3,488.67. The Nasdaq Composite Index sank 95.17 points, or 0.80 per cent, to 11,768.73, Xinhua news agency reported.

Eight of the 11 primary S&P 500 sectors declined, with consumer discretionary down 1.43 per cent, leading the laggards. Industrials closed up 0.54 per cent, the best-performing group.

US-listed Chinese companies traded mostly lower, with six of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.

Investors continued to look for clues on new stimulus. An impasse among US lawmakers in Washington has somewhat dimmed hopes that more Covid-19 relief aid would come to fruition before the election.

“We have two sides that are very far apart in terms of arriving at some form of stimulus, and I do not think it is likely we see a breakthrough before the election,” Mitch Zacks, CEO at Zacks Investment Management, said in a note on Wednesday.

Looking ahead, analysts said markets will remain sensitive to news of fiscal support in the lead-up to the election.

Meanwhile, Wall Street pored through newly-released earnings reports.

Goldman Sachs on Wednesday delivered quarterly results that well exceeded consensus estimates. Its shares rose 0.2 per cent.

Bank of America shares fell more than 5 per cent after its earnings topped expectations and overall revenue missed estimates.

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