It seems that promoters of Indian companies are not convinced of ongoing bull nun in Indian markets.As they are resorting to offloading stocks at every rise as was evidenced by recent plethora of offer for sale or QIP fundings by companies like RCOM, GMRINFRA ,JP ASSOCIATES AND LT INFRA FINANCE.
These offloading s are often done on steep discounts to market prices,it is against the interest of existing shareholders,and are often informed to exchanges one day prior to offloading s.
Moreover these are done in mostly stocks trading in futures and punters,insiders,and big investors make a killing by shorting in futures and subsequently buying in QIP or FPO.
These are very dangerous precedents and are against good corporate governance .
Sebi should take note of these practices as they are detrimental to existing share holders and there is scope for conniving of promoters and punters for quick gains as was recently seen in Lt infra fpo the day it was included in stock future it was quoting at 88 and on second day its future is quoting at 4 Rs discount to cash and on third day company has told exchanges of floor price of Rs.70 for Fpo.
Later it was found that one hedge fund guy has heavily shorted in future and have made a killing.
He was subsequently banned but what about roles of exchange and LT management
These offloading s are often done on steep discounts to market prices,it is against the interest of existing shareholders,and are often informed to exchanges one day prior to offloading s.
Moreover these are done in mostly stocks trading in futures and punters,insiders,and big investors make a killing by shorting in futures and subsequently buying in QIP or FPO.
These are very dangerous precedents and are against good corporate governance .
Sebi should take note of these practices as they are detrimental to existing share holders and there is scope for conniving of promoters and punters for quick gains as was recently seen in Lt infra fpo the day it was included in stock future it was quoting at 88 and on second day its future is quoting at 4 Rs discount to cash and on third day company has told exchanges of floor price of Rs.70 for Fpo.
Later it was found that one hedge fund guy has heavily shorted in future and have made a killing.
He was subsequently banned but what about roles of exchange and LT management
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