Sebi imposes Rs 85 lakh fine on Orient Resorts, 2 individuals, for non-compliance with its directive

Markets regulator Sebi has imposed a penalty totalling Rs 85 lakh on Orient Resorts (India) and two individuals for not complying with the watchdog’s earlier directive to wind up its operations and refund investors’ money.
The fine has been imposed on Orient Resorts (India) Pvt Ltd (ORIPL), Dilpesh V Shah and Darshanbhai Arvindbhai Shah (noticees).

In November 2013, Sebi had passed an order directing Orient Resorts to wind up its operations and refund the money of the investors which it had collected through its illegal collective investment scheme.

According to the order, Orient Resorts had launched ‘Vanashree Teak Bumper Profits Scheme’ in 1993. It called for an investment of Rs 910 per unit for a period of 18 years from the investors and claimed that the investors would receive Rs 91,000 for every Rs 910 invested for one unit.

The money collected was pooled towards setting up a teak plantation. However, the regulator observed that the 18-year period stipulated in the scheme has expired and ORIPL has not yet made repayment of profit, income to investors as promised by it.

Also, there is no documentary proof on record to substantiate the claim of the noticees for having repaid the income or returns to the investors, the watchdog said. Besides, ORIPL and Dilpesh V Shah failed to submit any report to Sebi about compliance with the directions issued by Sebi earlier, it added.

“I find that ORIPL has illegally continued the scheme in contravention of the…..provisions of…Collective Investment Schemes (CIS) Regulations,” Sebi’s Adjudicating Officer Prasanta Mahapatra said in its order passed on Monday.
While imposing penalties the watchdog said, the hard earned money of the investors cannot be allowed to be duped by the illegal activities of the company.

Further it said, the activities of unauthorized pooling of funds from the investors by the company are illegal because it has launched CIS without obtaining registration from Sebi. For the violations, Sebi levied Rs 35 lakh fine on Orient Resorts (India) Pvt Ltd.

Besides, a fine of Rs 35 lakh and Rs 15 lakh has been imposed on Dilpesh V Shah and Darshanbhai Arvindbhai Shah, respectively.

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TCS share price jumps over 2% ahead of Oct-Dec quarter results; large deal wins, outlook on margins eyed

TCS share price jumped over 2 per cent to Rs 3,098.35 apiece today on BSE ahead of October-December quarter earnings. Earlier this week, Tata Consultancy Services stock price hit a 52-week high of Rs 3,114.45 per share. The Information Technology (IT) sector has been among one of the best performing sectors in FY21. The Nifty IT index has surged nearly 2 per cent to 25,727.10 levels. According to an analyst, generally, Q3 is a slack quarter for IT companies. AR Ramachandran, Co-founder & Trainer, Tips2trades told Financial Express Online that this time, investors are expecting the best quarterly performance from TCS along with other companies like Infosys, HCL Technologies and Wipro with dollar revenue growth of over 3% as against 1%.

According to Suyog Kulkarni, Senior Research Analyst, Reliance Securities, Nifty IT is likely to enjoy premium valuation versus broader market, driven by mid-term growth visibility, stable margins and consistent cash return policy.

Analysts at JM Financial Services expect a 2.3 per cent sequential growth with a 50 bps cross-currency gain. “We are building in a sequential EBIT margin contraction of 80 bps due to wage increments implemented from Oct 1 and slight INR appreciation. According to the domestic brokerage firm, key things to watch out for would be large deal TCV, outlook on CY21 client spending, and outlook on margins over the medium term.

Ramachandran also said that technically, if earnings remain as estimated, then he believes that it has been factored in the stock price. “Investors are advised to book profits on every rise,” he said.

From the 52-week low of Rs 1,504.40 apiece, TCS stock price has more than doubled, rising 106 per cent. Analysts at ICICI Securities expect Indian IT sector to deliver strong sequential revenue growth led by fewer-than-usual furloughs, and residual recovery from Covid decline over H1CY20. It also believes that product-related seasonality/large deal ramp-ups too should help in some cases and margins may remain stable.

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