Why CB Bhave did not get an extension at SEBI

C B Bhave is one of the finest technocrats in India in the capital markets space.Yet he did not get an extension as the Chief of SEBI.Outlook magazine has an explanation why:

More recently, there’s the case of the appointment of the current chief of the Securities and Exchange Board of India (SEBI), U.K. Sinha—Omita Paul (close confidante-cum-aide-cum-advisor to Pranab Mukherjee) has been accused of having cancelled an extension of the former head C.B. Bhave to accommodate Sinha, who was heading UTI Mutual Fund.

Once Sinha got the job, she is said to have delayed the appointment of the UTI MF chief to enable her brother Jitesh Khosla, a 1979 batch IAS officer, to have a shot at the post (he wasn’t even in the initial shortlist). Omita has denied any hand in this, saying Khosla had applied of his own accord. His candidature was reportedly protested by the fund’s largest shareholder, the investment firm T. Rowe Price. Khosla later withdrew from the race.

 

Oh the games people play !!

The devil you know

Retail investors have fled India’s stock markets and it seems that they are not likely to come back in a hurry.

One big reason is the common perception on Main Street “Sab Promoter Chor Hai” i.e. all promoters are crooks.

The newsflow has also been supporting this viewpoint.

Today Veritas came out with a report indicating that the promoters of Indiabulls Group have swindled large amounts from their companies.

Earlier, the newsreport was how the Deccan Chronicle promoters moved money away from their print media business into aviation.

Next was Arvind Rao of Onmobile passing fake bills from his company.

The less said about the shenanigans of Anil Ambani, Gautam Adani the better.

What is distressing is also the behavior of companies like HDFC. HDFC Life Insurance paid group entities like HDFC Bank and HDFC Securities, excess money in the name of “marketing expenses”. They were paid Rs. 428 cr. and 133 cr. respectively, which was more than 2.5 times the money actually spent.

No wonder the Indian public is turning away from the devils in the stock market to the devils they know best-their local jeweller and the local real estate agent .

That’s assuming they still have money left after paying the bills in an era of low growth and double digit inflation.