Insider trading and market manipulation are being included in the Prevention of Money Laundering Act (PMLA) as ‘scheduled’ offences, a move that could result in stricter punishment for these crimes. Acting on suggestions from finance ministry officials, all offences covered under Section 12A of the SEBI Act, read with Section 24 of the SEBI Act, are being included in the PMLA schedule, government sources said. Offences related to human trafficking, smuggling of migrants, piracy and environmental crime are also being included in the law, they added. The revenue department has circulated an updated draft Cabinet note on the proposed amendments to PMLA to all departments concerned. A revised draft of the amendment bill, incorporating the latest proposals, has also been circulated for comment. It is understood that the draft note would be forwarded for Cabinet approval soon. Officials say the bill is scheduled to be introduced in Parliament during the ongoing session itself.
Punishment under PMLA—which also fulfils India’s global obligations—is far stricter than the penalty that offenders face under SEBI Act. The PMLA provides for attachment and seizure of property and records, besides imprisonment and penalty. Once the amendments to PMLA are legislated, overseas payment gateways, money changers and money transfer service providers have to face mandatory reporting obligations. As offences that have cross-border implications are being included in the PMLA, it was felt that market manipulation and insider trading should also be part of the inclusions. “The department (economic affairs) has suggested Chapter VA of Securities and Exchange Board of India Act, 1992 (i.e. Section 12A) for inclusion,” says a government document circulated to various ministries and departments for comment. The suggestion of department of economic affairs has been accepted and Section 12A of Securities and Exchange Board of India Act, 1992 (Prohibition of Manipulating and Deceptive Devices, Insider Trading and Substantial Acquisition of Securities and Control), read with Section 24 of Securities and Exchange Board of India Act, 1992, is proposed to be included in Part B of the schedule to PML Act,” the document adds. It is understood that the law ministry has already cleared the proposed changes. Finance minister P Chidambaram has also approved the amendments proposed in the updated Cabinet note, the sources said. The updated law would also have provisions to take action against those engaged in export of antiques and counterfeiting of currency, besides terrorism. Those who finance terror acts like bomb blasts can also be prosecuted under the updated law. While there are separate laws to deal with such offences, the new provisions will help the government to pin down those financing or amassing wealth by getting involved in such acts. For example, the department of industry policy & planning has been consulted for addition of some offences covered by the Explosives Act to the PMLA schedule. The finance ministry has also favoured coverage of human trafficking, counterfeiting, piracy, environmental crime and trafficking in stolen goods under the PMLA. The sources said North Block proposed inclusion of cross-border offences to the law schedule so that more stringent action can be taken and the government is enabled to track down offenders in anywhere.
Wednesday, April 16, 2008
Crude oil prices reach a new high above $114; gas prices also reach a record at the pump
Energy traders rewrote the record books again Tuesday, pushing oil futures past $114 a barrel as gasoline and diesel prices struck new highs of their own at the pump.
Light, sweet crude for May delivery jumped as high as $114.08 a barrel shortly after regular trading ended on the New York Mercantile Exchange. That is nearly $2 above an intraday high set last week.
Concerns about insufficient global supply, stoked by a high-profile report by the International Energy Agency that said Russian oil production dropped this year for the first time in a decade, was largely responsible for the surge. Oil prices rose as high as $113.99 a barrel during the regular session before settling at $113.79, up $2.03 from Monday's record close of $111.76 a barrel.
"In an emotionally driven market like we've got now, it just doesn't take much in the way of a headline to prompt a psychological response," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Ill.
Prices at the pump also charged ahead. Retail gasoline prices rose to a new average national record of $3.386, according to AAA and the Oil Price Information Service. Prices were highest in California, where mid-range and higher grades are now averaging more than $4 a gallon.
Diesel prices at the pump jumped to $4.119 a gallon, also a record, setting the stage for even higher prices on food and other goods transported by truck, ship and rail.
Prices are widely expected to keep rising as summer approaches. Gasoline futures jumped by nearly 6 cents to finish at a settlement record of $2.881. That is less than a nickel below the all-time intraday high for the benchmark contract that was set as Hurricane Katrina made landfall in 2005.
"Unfortunately, we do expect the price of gasoline, and probably diesel as well, are going to escalate as long as the price of oil keeps moving higher," said Geoff Sundstrom, a fuel price analyst for AAA.
Oil's recent run above $100 a barrel has been largely attributed to a steadily depreciating dollar, because the weakness prompts investors to seek a safe haven in hard commodities such as oil and gold. The greenback strengthened marginally against the euro Tuesday afternoon, but still remains near all-time lows against the 15-nation currency.
The oil report from the IEA -- the Paris-based energy watchdog for industrialized countries -- said Russia, the world's biggest oil exporter after Saudi Arabia, averaged 10 million barrels per day from January through March, down 1 percent from 2007. That is the first time production has failed to exceed previous-year figures since 1998.
Artyom Konchin, an analyst with Russian investment bank Aton Capital, attributed Russia's oil supply lull to high taxes and insufficient reinvestment into infrastructure.
"It's not that we don't have enough oil," he said. "We just don't have enough capital going into developing the fields."
Crude prices were also supported by reports of a number of supply disruptions.
Attracting the most attention was the closure of Mexico's three main oil-exporting ports on the Gulf Coast because of bad weather starting Sunday. Only one of the ports remained closed Tuesday, according to Mexico's Communications and Transportation Department.
The department issued a bulletin Tuesday morning that the Pacific oil port of Salina Cruz also had been closed because of strong wind and high waves, although that terminal is not a major supplier for the U.S.
"It just shows you how fragile the oil markets are," Sundstrom said.
In other Nymex trading, heating oil futures surged by 7.1 cents to settle at $3.2739 gallon, while natural gas futures spiked 15.2 cents to settle at $10.212 per 1,000 cubic feet.
In London, May Brent crude rose $1.47 to settle at $111.31 on the ICE Futures exchange.
Associated Press Writers George Jahn in Vienna, Austria, Gillian Wong in Singapore, and Jessica Bernstein-Wax in Mexico City contributed to this report.
Light, sweet crude for May delivery jumped as high as $114.08 a barrel shortly after regular trading ended on the New York Mercantile Exchange. That is nearly $2 above an intraday high set last week.
Concerns about insufficient global supply, stoked by a high-profile report by the International Energy Agency that said Russian oil production dropped this year for the first time in a decade, was largely responsible for the surge. Oil prices rose as high as $113.99 a barrel during the regular session before settling at $113.79, up $2.03 from Monday's record close of $111.76 a barrel.
"In an emotionally driven market like we've got now, it just doesn't take much in the way of a headline to prompt a psychological response," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Ill.
Prices at the pump also charged ahead. Retail gasoline prices rose to a new average national record of $3.386, according to AAA and the Oil Price Information Service. Prices were highest in California, where mid-range and higher grades are now averaging more than $4 a gallon.
Diesel prices at the pump jumped to $4.119 a gallon, also a record, setting the stage for even higher prices on food and other goods transported by truck, ship and rail.
Prices are widely expected to keep rising as summer approaches. Gasoline futures jumped by nearly 6 cents to finish at a settlement record of $2.881. That is less than a nickel below the all-time intraday high for the benchmark contract that was set as Hurricane Katrina made landfall in 2005.
"Unfortunately, we do expect the price of gasoline, and probably diesel as well, are going to escalate as long as the price of oil keeps moving higher," said Geoff Sundstrom, a fuel price analyst for AAA.
Oil's recent run above $100 a barrel has been largely attributed to a steadily depreciating dollar, because the weakness prompts investors to seek a safe haven in hard commodities such as oil and gold. The greenback strengthened marginally against the euro Tuesday afternoon, but still remains near all-time lows against the 15-nation currency.
The oil report from the IEA -- the Paris-based energy watchdog for industrialized countries -- said Russia, the world's biggest oil exporter after Saudi Arabia, averaged 10 million barrels per day from January through March, down 1 percent from 2007. That is the first time production has failed to exceed previous-year figures since 1998.
Artyom Konchin, an analyst with Russian investment bank Aton Capital, attributed Russia's oil supply lull to high taxes and insufficient reinvestment into infrastructure.
"It's not that we don't have enough oil," he said. "We just don't have enough capital going into developing the fields."
Crude prices were also supported by reports of a number of supply disruptions.
Attracting the most attention was the closure of Mexico's three main oil-exporting ports on the Gulf Coast because of bad weather starting Sunday. Only one of the ports remained closed Tuesday, according to Mexico's Communications and Transportation Department.
The department issued a bulletin Tuesday morning that the Pacific oil port of Salina Cruz also had been closed because of strong wind and high waves, although that terminal is not a major supplier for the U.S.
"It just shows you how fragile the oil markets are," Sundstrom said.
In other Nymex trading, heating oil futures surged by 7.1 cents to settle at $3.2739 gallon, while natural gas futures spiked 15.2 cents to settle at $10.212 per 1,000 cubic feet.
In London, May Brent crude rose $1.47 to settle at $111.31 on the ICE Futures exchange.
Associated Press Writers George Jahn in Vienna, Austria, Gillian Wong in Singapore, and Jessica Bernstein-Wax in Mexico City contributed to this report.
MARKET PREDICTION
GLOBAL MARKETS ARE POSITIVE TODAY AFTER YESTERDAY BIG RALLY.
NIFTY TRADING INTO PREMIUM FROM DISCOUNT.
TOTAL MARKET OI 62 K CR (APROX) PUT CALL RATIO 1.28.
YESTERDAY MARKET HAD GIVEN BREAK OUT OF PSYCHOLOGICAL LEVEL OF 4820 WHICH IS NOW IMMEDIATE SUPPORT FOR THE MARKET.
LEVEL OF NIFTY 4800-4820-4900-4950-5000.
CLOSE ALL LONG AT 5000.
OIL&GAS LOOKS GOOD RPL,MRPL,SELAN,HINDOIL EXPLO.
HAVE A NICE TRADING DAY.
-MR. SAM
NIFTY TRADING INTO PREMIUM FROM DISCOUNT.
TOTAL MARKET OI 62 K CR (APROX) PUT CALL RATIO 1.28.
YESTERDAY MARKET HAD GIVEN BREAK OUT OF PSYCHOLOGICAL LEVEL OF 4820 WHICH IS NOW IMMEDIATE SUPPORT FOR THE MARKET.
LEVEL OF NIFTY 4800-4820-4900-4950-5000.
CLOSE ALL LONG AT 5000.
OIL&GAS LOOKS GOOD RPL,MRPL,SELAN,HINDOIL EXPLO.
HAVE A NICE TRADING DAY.
-MR. SAM
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