Market Operator

March 18, 2013

Cost of Trading in Stock Exchange – Types & Trends

Cost Of Trading In India, capital markets have been playing a vital role in determining the fate of the economy and helping it to grow further. […]
March 7, 2013

8 Major Challenges in the Growth of the Indian Capital Market

Capital Market A capital market is a market for securities which can be either debt or equity, where business enterprises which includes companies and governments can raise long-term funds. In other words it is defined as […]
January 2, 2012

Why Indian Government allowing Direct Foreign Individual Investing in stocks could be a Bad Idea for Both

For Foreign individuals a) The idea may be bad as well as Indian stock markets are a quagmire of bad corporate governance and corruption.Insider trading and manipulation is quite rampant which has made retail investors flee the market. b) They will be faced with foreign exchange volatility which can be quite high.In dollar terms the Indian market fell by almost 35% in 2011. c) Some sectors are notorious for corruption with even professional fund managers avoiding real estate because of accounting shenanigans and indian small cap stocks being like casino games rather than companies
July 5, 2011

Indian Court objects to Retail Banking Licence for Black Money Facilitator UBS

India's Supreme Court took over the investigation of vast amoutnof black money stashed in foreign money accounts from the compromised government.The ruling Congress party has proven to be remarkably reluctant to take action against corruption and black money despite huge pressure from the civil society and the judiciary.The government itself has ministers who are highly corrupt with a telecom minister in jail and the textile minister who may be on the way as well.Other ministers like the Agricultural Minister Pawar has repeatedly surfaced in numerous scams rocking the country.The Supreme Court has also taken the government to task for granting a retail banking license to the Swiss giant bank UBS.Note UBS had not been given a license as it was under suspicion for facilitating the movement of ill gotten money into Swiss bank accounts
June 28, 2011

Proprietary Trading in India by Foreign Banks allowed by Finance Ministry over RBI objections – Bad Move

Proprietary Trading by Foreign Banks and Brokerages has been allowed by the Finance Ministry overruling India's Central Bank RBI.There seems to be no logical reason given by the Ministry despite RBI objecting saying that it will affect the financial stability and lead to increased speculation in the Indian stock markets.Note Properietary Trading refers to trading in financial assets by investment banks using their money and has come under the regulatory glare in the US.Huge conflicts of interest arise due to this practise as brokerages can indulge in front running and other unethical and illegal acts.Already major investment banks like Goldman have been fined hundreds of millions of dollars over improper trading acts.Proprietary Trading encourages brokerages to mislead and defraud customers as they are generally on the other side of the trades and advising them as well.
June 20, 2011

India sees a Flash Crash as Nifty crashes by 3% in 10 minutes as Mauritius might lose Tax Haven Status

The Indian Stock Market saw a flash crash on the morning of 20th June at 10 am.The market which started weak at 9 am fell by almost 3% in 10 minutes.The main index Nifty which was trading at around 5350 crashed to around 5200 in around 10 minutes.The market recovery by 1% but is again starting to go down to the low levels fo 5200 .Note the Indian stock market has been hammered due to worries on inflation,massive endemic corruption which is facing protests from the civil society.The FIIs which are the main buyers of Indian equities in the last year or so seem to have abandoned the Indian stocks as QE2 starts ending and global risks like Greece,US slowdown,inflation and interest rates worries in emerging markets come to the fore.Note Indian stock markets are not the easiest to invest in with scams and scandals happening regularly and it at best remains a market in which you have to choose between the bad and the ugly.
May 7, 2011

How to invest in the India Stock Market where Managment Quality is a choice between Bad and Ugly

Investing in the Indian Stock Markets is like navigating your way through a minefield with innumerable instances of fraud,unethical actions and disregarding the interest of the retail investor.The SEBI which is India's stock market regulator remains mostly toothless and a blind spectator to the whole stock market fraud schemes like pump and dump.Most of the IPO's that come in the Indian markets are blatantly manipulated by the market operators,promoters and shady investment bankers.However SEBI has not taken any action so far which would make one speculate that the regulator is itself compromised.The pump and dump schemes continue unabated in the market which remains quite shallow despite the more than one trillion dollar capitalization.Mid cap and small cap corruptions scams happen with alarming regularity and even top MNCs defraud the retail investors using legal loopholes.
February 19, 2011

CleanTech Fraud Caught as CO2 Tech Accused of Being a Green Pump and Dump Stock

The CleanTech and Green Theme is being increasingly used by fraudsters and fly by night operators in the stock market.CO2 Tech Ltd.,a Pink Sheets Company has […]
February 18, 2011

Pot Calls Kettle Black as Indian 2G Telecom Scam Accused ADAG Group blames Bear Cartel for Fall in Infra Stocks

Note it would not be surprising if the allegations were true as the Indian stock market is a pump and dump heaven of IPOs with blatant manipulation by market operators.Price Rigging Rings are also present with mid cap and small cap scams happening with an alarming regularity.With Corruption touching a new high,the Supreme Court has taken over the investigation of the Telecom Scam Probe from the Government.This has led the CBI which is mostly a ruling party puppet to question some top billionaires and politicians.However it remains to be seen if some of the top fish are caught or just some small scapegoats are imprisoned.
February 16, 2011

Sudar Garments IPO Review – Extremely Low Quality,High Valuation with a Shady Investment Banker

In the season of scams and scandals when the erstwhile high flying mid cap and small cap names are getting battered for management issues,Sudar Garments has surprisingly come out with an IPO despite spotty corporate governance issues.Like so many of the junk IPOs coming out in 2010,this one too should managed to raise money through market operators.The modus operandi of these IPOs is mostly pump and dump where a few unscrupulous and shady brokers are responsible for managing the issue.With the stock market regulator SEBI refusing to crack down on these blatant manipulation,the pipeline of crappy small cap junk IPOs in the Indian stock market keeps growing.Thought that the current market crash would have removed them,but apparently not so as the junk IPO industry keeps growing stronger.This despite the more than 50% crash on issue day of Omkar Chemicals ( a junk IPO).Here are some of the notable negatives of the issue which has been given a 1 out of a 5 rating by rating agency CRISIL (not that the rating help the retail investors).
December 8, 2010

India's MidCap Stock Scam gets Murkier as High Flying Agri Stocks get Implicated

Now the Investigative Bureau (IB) has said that another stock market operator Rathod was colluding with promoters of agricultural companies like Ruchi Soya,Karuturi Global and KS Oils to rig stock prices.This was being done through various front companies and maverick investor C Shivasankaran was behind these moves.Note these companies have become the darling of brokerages and media being touted as the next big thing with vertical integration and acquisitions of agricultural land in Africa.The media hype that these companies got also makes one suspect that some of these firms were also involved in this scam.The Modus Operandi was again the same as followed by Dangi and Ashika group firms earlier.It remains to be seen if prosecution results in any jail time for any of these offenders.Generally nothing happens in corruption scandals in India as a SC Judge recently note that corruption had become a way of life.
December 7, 2010

Midfield Industries gets Dumped after a Long Pump,Falls Circuit Down 20% each in last 2 days

Midfield Industries which is a small low quality company did an IPO around 3 months ago at a very expensive price that did not justify the […]
December 4, 2010

Ravi Kumar Distilleries (RKDL) IPO Review- Small Liquor,Low Margin,Low Growth, Low Quality Company Avoidable

Ravi Kumar Distilleries (RKDL) is another low quality company coming out with an IPO to take advantage of the current bullish conditions of the Indian Stock Market.It is not the first junk IPO nor is going to be the last ,it is an addition to the list of low quality companies which have given huge losses to investor unfortunate enough to subscrible.Note more than 50% of the companies coming out with an IPO over the last year are trading well below issue price.Recent Stock Market Scandals show the complicity of market operators,shady promoters and compromised financial institutions.Note the other recent IPOs by the investment banker for RKDL IPO have resulted in massive losses for investors.It would take a miracle for this one to prove a success.Ravi Kumar Distilleries (RKDL), plans to raise Rs 74 crore through its Initial Public Offer (IPO) and has fixed the price-band at between Rs 56-64 per share for the issue.Here are some of the main features of the IPO