nov 29-dec4

8/8/2019 nov 29-dec4

http://slidepdf.com/reader/full/nov-29-dec4 1/18

8/8/2019 nov 29-dec4


Loan scam hints at shady midLoan scam hints at shady mid--

cap dealscap deals A 160 A 160--FOLD rise in a stocks price in four FOLD rise in a stocks price in four

years without analysts tracking it and fewyears without analysts tracking it and fewfunds owning it should have triggeredfunds owning it should have triggered

alarm bells at the surveillancealarm bells at the surveillancedepartments of stock exchanges and thedepartments of stock exchanges and themarket regulator.It did not.That wasmarket regulator.It did not.That wasMoney Matters Financial Services,theMoney Matters Financial Services,thecompany in the thick of the bribescompany in the thick of the bribes--for for--loans scandal that has led to the arrest of loans scandal that has led to the arrest of eight executives,including its chief.eight executives,including its chief.

8/8/2019 nov 29-dec4


Many local fund managers were of theMany local fund managers were of theview that the issue was hugelyview that the issue was hugely

overpriced,compared to competitors withoverpriced,compared to competitors withsimilar business models,and so avoidedsimilar business models,and so avoidedinvesting in it.investing in it.

8/8/2019 nov 29-dec4


Some of those who are associated withSome of those who are associated withthe market for private placement talk inthe market for private placement talk in

private of kickbacks being paid in shareprivate of kickbacks being paid in shareplacements of some smallplacements of some small-- and midand mid--sizedsizedcompanies,and how some of the overseascompanies,and how some of the overseasinvestors participating in the placementsinvestors participating in the placements

merely act as fronts for promoters tomerely act as fronts for promoters toplough back unaccounted fundsplough back unaccounted fundsabroad,into their companies.abroad,into their companies.

8/8/2019 nov 29-dec4


MOIL IPO retail subscription 28MOIL IPO retail subscription 28

times, total 56.29 timestimes, total 56.29 times The initial public offering (IPO) of The initial public offering (IPO) of

manganese miner MOIL was bid 55 timesmanganese miner MOIL was bid 55 times

the offer, the highest for an IPO since Maythe offer, the highest for an IPO since May2009.2009.

The Rs 1,238The Rs 1,238--crore share sale drewcrore share sale drewinvestors from the institutions andinvestors from the institutions and

individual investors alikeindividual investors alike

8/8/2019 nov 29-dec4


The 3.36 crore equity share issue wasThe 3.36 crore equity share issue wassubscribed more than 49 times in thesubscribed more than 49 times in theportion reserved for institutions , data fromportion reserved for institutions , data from

stock exchanges show.stock exchanges show. The portion reserved for wealthy, or highThe portion reserved for wealthy, or high

net worth individuals , was bid 143 times,net worth individuals , was bid 143 times,

while the retail portion, where limit waswhile the retail portion, where limit wasdoubled to Rs 2 lakh per application wasdoubled to Rs 2 lakh per application wassubscribed more than 28 times.subscribed more than 28 times.

8/8/2019 nov 29-dec4


Most of the bids were at the top end of theMost of the bids were at the top end of theRs 340Rs 340--375 a share price band.375 a share price band.

The government sold the MOIL shares in aThe government sold the MOIL shares in aprice band of Rs 340price band of Rs 340--375 and promised a375 and promised a5% discount to retail investors and the5% discount to retail investors and the

company staff of 6,734.company staff of 6,734.

The government has raised over Rs 21,000

crore this fiscal selling shares including incompanies such as Power Grid Corp.

8/8/2019 nov 29-dec4


PNsPNs-- PNs are contracts issued by foreignPNs are contracts issued by foreigninstitutional investors,or FIIs,registered withinstitutional investors,or FIIs,registered withSebi,to their offshore clients wanting to invest inSebi,to their offshore clients wanting to invest in

Indian shares.Indian shares. These offshore clients either cannot meet theThese offshore clients either cannot meet the

eligibility norms to invest in India,or do not wanteligibility norms to invest in India,or do not wantto register with Sebi for some reason.Such PNsto register with Sebi for some reason.Such PNsenable the overseas investors to buy Indianenable the overseas investors to buy Indianequities through the FII without their identityequities through the FII without their identitybeing revealed.being revealed.

8/8/2019 nov 29-dec4


20072007-- Sebi chairman M Damodaran had put restrictionsSebi chairman M Damodaran had put restrictionson PN issuances by FIIs and eased norms to encourageon PN issuances by FIIs and eased norms to encourageoverseas investors to register with the Sebi director.Butoverseas investors to register with the Sebi director.But

those restrictions were reversed the following year amidthose restrictions were reversed the following year amidthe global financial crisis,when FIIs sold Indian shares inthe global financial crisis,when FIIs sold Indian shares ina big way.While investments through PNs as aa big way.While investments through PNs as aproportion of overall foreign portfolio investments areproportion of overall foreign portfolio investments arenow less than 15%,compared with over 50% innow less than 15%,compared with over 50% in

2007,brokers and fund managers say it is mostly the2007,brokers and fund managers say it is mostly theillegal funds of resident Indians that come in through thisillegal funds of resident Indians that come in through thisroute.route.

8/8/2019 nov 29-dec4


QIPs and even FCCBs (foreign currencyQIPs and even FCCBs (foreign currencyconvertible bonds) are routinely used byconvertible bonds) are routinely used bypromoters to bring back illegal money parkedpromoters to bring back illegal money parked

abroad.abroad. This practice is widely prevalent in globalThis practice is widely prevalent in global

depository receipts,or GDRs,where manydepository receipts,or GDRs,where manyunknown companies choose to list on illiquidunknown companies choose to list on illiquidmarkets,and where the anonymous investorsmarkets,and where the anonymous investorsare affiliates of the promoter group.are affiliates of the promoter group.

8/8/2019 nov 29-dec4


FiftyFifty--four companies have raised over $5.5four companies have raised over $5.5billion through QIPs till October,accordingbillion through QIPs till October,accordingto Prime Database.Given the buoyantto Prime Database.Given the buoyantsentiment,which prevailed in the stocksentiment,which prevailed in the stockmarket for much of this year,almost everymarket for much of this year,almost everysingle placement was heavily subscribed.single placement was heavily subscribed.

8/8/2019 nov 29-dec4


8/8/2019 nov 29-dec4


Court rejects bail to loanCourt rejects bail to loan--scamscam

accusedaccused REJECTING bail applications from all the eight accusedREJECTING bail applications from all the eight accused

in the bribein the bribe--for for--loans caseloans case

The persons arrested by the Central Bureau of The persons arrested by the Central Bureau of Investigation (CBI) include former CEO of LIC HousingInvestigation (CBI) include former CEO of LIC Housing

Finance Ramachandran Nair,Naresh K ChopraFinance Ramachandran Nair,Naresh K Chopra(secretary,investment,LIC),RN Tayal (general(secretary,investment,LIC),RN Tayal (generalmanager,Bank of India),Maninder Singh Johar manager,Bank of India),Maninder Singh Johar (director,Central Bank of India),Venkoba Gujjal (deputy(director,Central Bank of India),Venkoba Gujjal (deputygeneral manager,Punjab National Bank),besides Rajeshgeneral manager,Punjab National Bank),besides Rajesh

Sharma,chairman of MumbaiSharma,chairman of Mumbai--based firm Money Mattersbased firm Money Mattersand two of its employees Suresh Gattani and Sanjayand two of its employees Suresh Gattani and SanjaySharma.Sharma.

8/8/2019 nov 29-dec4


Nair,according to CBI,took bribes to clear loansNair,according to CBI,took bribes to clear loansworth 470 crore for the three realtors.Nair andworth 470 crore for the three realtors.Nair andsenior officials from three statesenior officials from three state--run banks wererun banks were

arrested by the CBI last week for taking bribesarrested by the CBI last week for taking bribesfrom Money Matters Financial Servicesfrom Money Matters Financial Services

CBI lawyer Eijaz Khan said that Nair took bribesCBI lawyer Eijaz Khan said that Nair took bribesfor sanctioning a loan worth 200 crore to DBfor sanctioning a loan worth 200 crore to DBRealty.He said Nair also accepted bribes for Realty.He said Nair also accepted bribes for clearing another loans worth 200 crore to Mantriclearing another loans worth 200 crore to Mantriand 70 crore to Entertainment World.and 70 crore to Entertainment World.

RR Nair,former CEO of LIC Housing Finance,

8/8/2019 nov 29-dec4


According to news agencies,LIC Housing According to news agencies,LIC HousingFinance said on Monday that loans worth 389Finance said on Monday that loans worth 389crore issued by it were under probe by CBI.Itcrore issued by it were under probe by CBI.It

also said the outstanding loans under scrutinyalso said the outstanding loans under scrutinyby CBI were performing and the value of by CBI were performing and the value of securities against the loans was over 1,000securities against the loans was over 1,000crore.crore.

Senior officials of Central Bank of India,PunjabSenior officials of Central Bank of India,PunjabNational Bank and Bank of India for allegedlyNational Bank and Bank of India for allegedlyaccepting bribes for sanctioning loans.accepting bribes for sanctioning loans.

VK Sharma,who took charge as the CEO of LIC Housing Finance

8/8/2019 nov 29-dec4


8/8/2019 nov 29-dec4


GainersGainers

CompanyGrou

p

Prev Close

(Rs)

Current Price

(Rs)

%

Chan

ge

BGR Energy

Systems

A 577.55 746.75 + 29.30

Shree RenukaSugars

A 76.15 91.15 + 19.70

Adani Enterprises Lt A 584.70 672.20 + 14.96

Suzlon Energy Ltd. A 45.35 51.70 + 14.00

HDIL A 178.45 203.25 + 13.90

8/8/2019 nov 29-dec4


LosersLosers

CompanyGrou

p

Prev Close

(Rs)

Current Price

(Rs)

%

Chang

e

Welspun Corp A 209.20 160.30 -23.37

Hero Honda Motor A 1,936.40 1,832.45 -5.37

CoromandelInternati

A 586.35 556.05 -5.17

Reliance Infrastruct A 871.55 836.70 -4.00

Marico Ltd. A 131.65 127.25 -3.34

nov 29-dec4

Documents