leena sebas
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The much awaited insider trading rule can help india?

Leena Sebas at 11:05 PM - Dec 06, 2013 ( ) Views: 1,154

3 3

All are waiting to see the new set of guide line SEBI going to announce soon to control the inside trading.

Though we discussed many times these subjects here, when  a member of mudraa expressed his concern in the below thread

http://www.mudraa.com/singlepost.php?messid=189214

forced me to write this thread.

i wish to highlight the following thoughts.

There is no point at all in discussing these things again and again as long as the watch dog SEBI  realise the following fact and take some corrective measures.Else whatever measures they going to impliment is  not going to have any impact i feel.

1-Though we got indepedence in 1947 , we didnt get any idepedence  till now regarding the ruling related to financial fraud, manipulation and domination related to stock market and our currencyby western powers.All are under the full control of western forces and they will keep on doing these things laughing at our authorities because of the folowing reason.

Our market open prior to indian opening (the first chance to manipulate the indian market by doing some cross trading , by those  group ,who create large position in indian market,else fool the indian traders after manipulating the sgx market after trading hours, so the purpose of sgx nifty is nothing but an advantage given for overseas traders to rule indian market , same like how british ruled india before independance..We are slaves to them..realise this naked truth.

2-The next fraud game happen in the pre opening in nse where a seperate window is created prior to the official opening and all circular trade happens under the dark pool trading facility given to institutions  before market opening..Also this time period is used to fix the opening of the nifty.so with least effort market can be controlled by a group of people.

If market open with out pre opening, then prior fixing is not so easy.So the smart people who created the pre opening session to help these players from outside who are Exchange traded fund and some FII who work hand in hand with some indian operators inside our market..

so when all these people join their hand, and when the political parties provide all prior information from the finance ministry , the job is so easy to do.

3-The last one is the speed game using the High frequency software which generate trade in 1/1000 seconds and cancell more than 70% of the orders which is called spoofing which though my law is not permitted in indian market, but as long  There are many tools to hide such trade from the official checking, the authorities cant find anything.Those who do the fraud are well equipped with their tools and no one can touch them or detect them though the authorities claim so.

4-SEBI if take the full trading report of the brokerage houses who often giving fat finger errors and check their trading prior to the opening (pre opening ) and normal trading hours will reveal the modus operandi of the operation and either should suspend them  if they keep on doing such  manipulation and dont limit it with some mere penality.

In europe some countries already stopped this practice of trading using high frquency trading  and recently European union fined 5 billions for rigging the currency market. see the report on the  below link, but most of the main channels not bother to show this news to the public nor they interested to discuss about it.

http://www.npr.org/blogs/thetwo-way/2013/12/04/248753402/european-union-fines-banks-billions-for-rigging-interest-rates

but in india the game is going on in another form and they are sure that nothing is going to happen in india, as india fear of dollar outflow.Else they threaten india using their rating agencies.

All these game will stop when india decide to abolish the machine trading and announce only humans can trade in indian market..

this will have two effect..

the most important plus point will be , lot of people will come back to indian market and lot of people who lost job due to the arrival of robot will get their job back.Good volume will pick up again in the indian market as more people come to do pair trading sitting in brokerage houses and many brokerage houses now shutting their offices will re open them if SEBI give confidence to them.

By doing so,more public will be interested to trade in indian market as they know that market manipulation using robots wil not happen so with out fear they can trade in indian market.

Until and unless all are treated equally regarding the speed of the order entry in indian market , Sebi cant win the confidence of the public and investors whatever measures they take with out considering the above facts.

The world , public, investors  all realising the real fact  that behind every fraud and manipulation all across the world , the main role is played by the big institution.

This is a fact, a reality, and a naked truth..

So if watch dog realise this fact and take some preventive measures in the new insider trading rule.we can hope , we finally got independance fully!

If not,then We will be forced to board on the same  old ship what we are sailing now!


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Leena Sebas at 10:20 AM - Dec 12, 2013 ( )

Few days before ,  A high ranking govt official in his  personal interview, confessing  that most of the cases, these officials are acting like puppet according to the ruling govt orders.In otherwords, they are just tools to impliment what the govt says.He shoudlnt keep  any politics while serving the govt .So whether it is RBI or SEBI, most of the time the interest of the govt will be reflected in the policies announced. 

below given is the commitee members inputs SEBI taken to draft the insider trading rule.

ANNEXURE 

ANNEXURE

LIST OF PERSONS WHO PROVIDED THEIR INPUTS TO THE COMMITTEE

(in alphabetical order)


1. Aimi Ramlee, Deputy Director, Asia Trader Forum

2. Amol Kulkarni, Policy Analyst, Centre for Investment, Competition and Economic
Regulation; CUTS International

3. Ashok Singh, Manager, Listing Compliance, Bombay Stock Exchange

4. Anjali Aggarwal, Vice President, Corporate Professionals Capital Pvt. Ltd.

5. Ankit Shah, Chartered Accountant

6. Bharat Vasani, Chief, Legal & Group General Counsel, Tata Sons Ltd

7. Compliance Legal

8. Cyril Shroff, Partner, Amarchand & Mangaldas & Suresh A Shroff & Co

9. Devang Joshi, Assistant Manager, Compliance-India, Franklin Templeton Asset
Management (India) Pvt. Ltd.

10. Dinesh Bhakade

11. Federation of Indian Chambers of Commerce & Industry

12. Girish V. Koliyote, Company Secretary, HDFC Ltd

13. HSBC Securities and Capital Markets (India) Pvt. Ltd.

14. Krishnan Sitaraman, Senior Director-Compliance, CRISIL Ltd.

15. Kritika Daga, AGM, ICICI Bank Ltd.

16. Nidhi Sharma Wig, Company Secretary

17. Padmaja Shirke, Union KBC Asset Management Company Private Limited

18. Pankaj Mishra, AVP Compliance, Kotak Securities Ltd.

19. Parmeshwaran N Swamy, Compliance, Equity and F&O, J.P. Morgan

20. Pinky Talreja, Company Secretary and Lawyer

21. Pritesh Majumdar, Compliance Officer & Company Secretary, DSP Blackrock
Investment Managers Pvt. Ltd.

22. S.C. Jain, Company Secretary, Xpro India Limited

23. S.K Dixit, Director, Institute of Company Secretaries of India

24. Sandeep Parekh, Partner, FINSEC Law Advisors

25. Sandip Bhagat, Partner, S&R Associates

26. Sanjay Dalmiya

27. Umakanth Varottil, Assistant Professor, Faculty of Law, National University of
Singapore

28. Yogesh Chande, Advocate, Economic Laws Practice

after  just going through the main highlighted 75 page report, it is very clear that nothing is in this report for the investors and this report is just another garbage which have enough loopholes for those who want to do the insider trading.there is nothing mentioned about the malpractice happening in the trading terminals and there is not even anything mentioned about it in this report.When we look at the members who contributed to this report, it is very clear that the commitee not at all taken anything to restore the interest and confidence  of the common investors.

below is the 75 page sebi report on insider trading

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1386758945803.pdf


 

Leena Sebas at 10:12 AM - Dec 12, 2013 ( )

Few days before ,  A high ranking govt official in this personal interview was confessing to the interviwer that most of the cases these officials are acting like puppet according to the ruling govt orders.In otherwords, they are just tools to impliment what the govt says.He shoudlnt keep  any politics.So whether it is RBI or SEBI, most of the time the interest of the govt will be reflected in the policies announced. 

below given is the commitee members inputs SEBI taken to draft the insider trading rule.

ANNEXURE

LIST OF PERSONS WHO PROVIDED THEIR INPUTS TO THE COMMITTEE

(in alphabetical order)


1. Aimi Ramlee, Deputy Director, Asia Trader Forum

2. Amol Kulkarni, Policy Analyst, Centre for Investment, Competition and Economic
Regulation; CUTS International

3. Ashok Singh, Manager, Listing Compliance, Bombay Stock Exchange

4. Anjali Aggarwal, Vice President, Corporate Professionals Capital Pvt. Ltd.

5. Ankit Shah, Chartered Accountant

6. Bharat Vasani, Chief, Legal & Group General Counsel, Tata Sons Ltd

7. Compliance Legal

8. Cyril Shroff, Partner, Amarchand & Mangaldas & Suresh A Shroff & Co

9. Devang Joshi, Assistant Manager, Compliance-India, Franklin Templeton Asset
Management (India) Pvt. Ltd.

10. Dinesh Bhakade

11. Federation of Indian Chambers of Commerce & Industry

12. Girish V. Koliyote, Company Secretary, HDFC Ltd

13. HSBC Securities and Capital Markets (India) Pvt. Ltd.

14. Krishnan Sitaraman, Senior Director-Compliance, CRISIL Ltd.

15. Kritika Daga, AGM, ICICI Bank Ltd.

16. Nidhi Sharma Wig, Company Secretary

17. Padmaja Shirke, Union KBC Asset Management Company Private Limited

18. Pankaj Mishra, AVP Compliance, Kotak Securities Ltd.
Report of the High Level Committee to Review the SEBI (Prohibition of Insider Trading) Regulations, 1992

Page 74 of 74

19. Parmeshwaran N Swamy, Compliance, Equity and F&O, J.P. Morgan

20. Pinky Talreja, Company Secretary and Lawyer

21. Pritesh Majumdar, Compliance Officer & Company Secretary, DSP Blackrock
Investment Managers Pvt. Ltd.

22. S.C. Jain, Company Secretary, Xpro India Limited

23. S.K Dixit, Director, Institute of Company Secretaries of India

24. Sandeep Parekh, Partner, FINSEC Law Advisors

25. Sandip Bhagat, Partner, S&R Associates

26. Sanjay Dalmiya

27. Umakanth Varottil, Assistant Professor, Faculty of Law, National Uni

28. Yogesh Chande, Advocate, Economic Laws Practice

after  just going through the main highlighted 75 page report, it is very clear that nothing is in this report for the investors and this report is just another garbage which have enough loopholes for those who want to do the insider trading.there is nothing mentioned about the malpractice happening in the trading terminals and there is not even anything mentioned about it in this report.When we look at the members who contributed to this report, it is very clear that the commitee not at all taken anything to restore the interest and confidence  of the common investors.

below is the 75 page sebi report on insider trading

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1386758945803.pdf

Veyini Ramamoorthy at 09:11 AM - Dec 07, 2013 ( )

In a simple COMPARISON in my previous post, please note the EPS, PE MULTIPLE, BOOK VALUE, and most importantly ROA% & ROE% FOR FY 13/14/15,

Why I should not call the ICICI staff who made these company report is a white collared criminal who should be arrested and investigated for short selling one of a finest script PSU for no Fundamental or Technical reason?

 

Veyini Ramamoorthy at 09:01 AM - Dec 07, 2013 ( )

I dont know how SEBI allows participation of retail investors in these policy formulation but without genuine issues discussed, there will be very long pain in the days ahead for retailers... 

I like to mention one of such issues:

Unethical company reports generated by the Fund houses are one of main source of public looting: Can some one convince  me what made ICICIDIRECT to make Rs 160 target for LIC HSG when the script was @ 170, when the same reports suggests Relince capital from 311 to 466.  This is nothing but manipulation. If some one investgates how ICICI did its fund purchases over these period, will reveal lot of issues.







Dilip Nilekar at 11:20 PM - Dec 06, 2013 ( )

A Bitter Truth and measures suggested by you is appreciated.

I hv Book marked it and will make use of this in future New's with Media and to SEBI

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