A Weak Week Gone by …Sensex shakes down 5% as Scams Surface and CBI makes ‘Listed’ arrests…have Selective Conviction

It’s been quite a weak week gone by….the Sensex shook 5% opening at 19841 last Monday but shaking in some shock down to 18955 on Friday…it has recovered to 19400 close as this week opens…..Looking beyond the Sensex shows that the shakedown has been more intense in the Mid cap and Low Cap Areas

IFCI has dropped to Rs 57 levels and IDBI Bank from Rs 200 ! to below Rs 160…both nearer Consolidated Book Value for this year….these price points offer lower risk Opportunities unless ofcourse scams unfold here too !

….what is also spooking the markets,apart from Korean War fears, is the CBI confirming a sense,long suspected by all of us really, that there have been huge sinster gameplans at work on the Exchanges…..collusions between Promoters,Bankers,Merchant Bankers,Politicians,Brokers,Fund Managers and  sadly even certain Print and Broadcasting Media…..to hype Companies and  rig up share prices to facilitate QIPs at high Prices with Fund Managers being paid off for participating in the QIPs…..it is alleged that even Exit Prices and Time Periods for this were pre decided….this would necessarily involve the need for Market Price manipulation…..where Loan has to be arranged it would involve Corruption…bribing those who can make decisions to deploy their Employers Huge Funds

CBI has made high level ‘Listed’ arrests…CEO of LIC Housing Finance….DGM of Bank of India and Independent Director of Central Bank of India,DGM of Punjab National Bank,Secretary (Investments) of LIC,CMD of listed Finance Intermediary, Money Matters Financial Services Ltd….the stink of corruption is polluting the markets….bribes being paid to Finance Heads of Listed Institutions through a Listed Financial Intermediary to faciliate Loans and QIP of Equity of hundreds of crores to Listed Corporates,especially Real Estate Companies….being ‘Listed’ seems to be the key….often manipulating the share price pays for the Corruption……..who suffers here ?….those primary market institutions and those secondary market  suckers who unknowing of this gameplan invested in the Share at an inflated price….if the situation is that of Loan Outstanding…it will probably remain outstanding till declared Non Perfoming and quietly written off after a few years !…and civil court cases takes years ! 

Maybe SEBI should report to the CBI !……..Because more often than not even this IPO High Obscene and Vulgar Pricing is a Scam of Sorts…though SEBI may argue it’s not their job to comment on Valuation and Pricing…and market forces will decide the success of the IPO…..but the truth is that most Investors are not educated enough to understand the Difference between Value and Price…and with no Protection now that the CCI Formula for Pricing the Premium gave the Promoters and Merchant Bankers will create Hype and milk Investors…we all know the Reliance Power IPO Debacle…probably only Mukesh Ambani did not invest in this !…Kishore Biyani’s Future Capital,Tanti’s Suzlon were nothing but IPO Loot Pricing….Adani Group is simply another story ! …of Satyam is now well known ! read more

UPA…Coalition Government…Coalition Corruption….but what’s the alternative!?

INDIA is outraged at this continuing scale of Corruption

As India’s GDP grows past US $ 1.4 trillion,so does the Corruption scale in tandem….the CAG Report just tabled in Parliament notes that the Loss to the National Exchequer in the 2G Spectrum Sale was a whopping Rs 176645 lakh crores if one considers the 3G realisations this year….that’s close to US $ 40 Billion !….that’s nearly 3% of our GDP !….would have taken care of half our Fiscal Deficit !

UPA Government lead by Congress with it’s Political allies for now…notably and yet DMK from Tamil Nadu,whose A Raja was the Telecom Minster who is alleged to have caused this Loss….they defend that this a presumptive loss…in that no real money has been lost !…but this money could,should and would have actually come to the Government and Public Domain from the Private Corporate Sector….the Telecom Minister deliberately contravened,tweaked,violated policy and procedures and even ignored  PMO’s advice and sold the 2G spectrum asset dirt cheap to favoured corporate groups….Swan (fronting Anil Ambani Group),Videcon,Unitech are some of the names …..surely some in the government were favoured in return…this is not presumptive ! …many of these groups were ineligible….many have yet to start their service even after nearly three years….and many quickly went on to sell equity stakes at five and ten times valuations based on the relatively meagre quantum of  2G Licensing fees paid…this too is not presumptive!    

Opposition party BJP wants a Joint Parliamentary Committtee (JPC) Probe…..JPC has never really been a successful tool….more of a whitewash…..more to protect from more skeletons coming out from the cupboard of all political parties…..MP’s across Political Parties cannot agree on the Floor of the Houses !…what will they concur with in a JPC !…you will get many dissent notes

Congress wants the due process to be followed of the CAG Report moving to the Public Accounts Committee (PAC)….but the PAC has no judicial authority…it merely reviews the CAG Report to check for appropriateness and completeness of conclusions backed by adequate supportings…it can merely delete or alter the wordings in the CAG report

INDIA wants the perpetrators to be pinpointed and punished fast….and be jailed

Our Supreme Court has even just questioned our Prime Minister,Manmohan Singh to explain his inaction in this 2G Scam and as to why A Raja was retained as Telecom Minister and not asked to step down much earlier….One of the Panelists on the TV spoke this of our PM ” He only listens to Uncle Sam and Sonia Ma’am !” read more