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Rolta Share Price being Raped and Company’s Promoter K K Singh did not know why !

Rolta was Rs 105 yesterday and this morning it fell suddenly by 7 % initially and then in a quick swoop sunk further to 50% of yesterday’s closing

Rolta Promoter,K K Singh, came first at around 2 pm on NDTV Profit and declared he had no clue why this fall has taken place…he squashed all rumours of UK Business Selloff,Resignation of Auditors,Selling by Lender of Shares Pledged by an associate Company,Manipulation of Accounts,Big Selling by FIIs ….Share Price recovered but was yet below Rs 75 and  35 % lower than yesterday’s closing of Rs 105..Then Mr Singh appeared on CNBC 18 and repeated yet again he was completely lost as to why this fall has taken place and blamed market fragility…He said that his inquiries had revealed that no major shareholder had sold…..yet the combines Volumes on BSE and NSE is 80% of the Free float with nearly Eight Crore Shares being traded Market reacted well on this and Rolta recovered to the Rs 85….It’s a clear indication that more Traders watch CNBC 18 than NDTV Profit !

So if you are a die hard addict of Intra-day trading then you must watch NDTV Profit first…any interesting trading opportunity may arise when Management or Promoter of the Company are chased to explain,deny or confirm company related developement or rumour..take this trading opportunity and then await the same person coming on later on CNBC to repeat what he or she has already said on NDTV Profit…sure way of making money !…..For example you could have purchased Rolta at Rs 72 to Rs 75 after K K Singh came on NDTV Profit at around 2 pm today and denied all rumours that were floating around to explain the Rolta Price crashing by over 40% to dive below Rs 60….Half and hour later,after he appeared on CNBC 18 and repeated himself,the share price of Rolta moved fast by 15% to Rs 85…you could have sold off,pocketing a cool Rs 10 per share atleast inside an hour of Intra Day Trading

Somebody is playing Big Games in Rolta on our Bourses and Rolta Promoter,K K Singh says he does not know !

SEBI has got to get to the bottom of this !..last Month’s Game Lever was Pyramid Saimira…Today’s is Rolta !

Our Markets are fast behaving like a ‘Matka’ Operation !….and in such sensitive and touchy markets,where one believes everything or nothing !,a Market Operator can initiate and float Rumours and get away with Raping the Share Price !

Exchange Authorities and SEBI needs to catch the Share Price Rapist or Gang Rapists fast to maintain market sanctity and credibility…They have been responsible for this combined turnover of over Rs 1000 crs in Rolta today in the Spot and Derivative Markets read more

Foreigners Misuse PN Route to Short….and Indians get shorted !

Is our Government and the Regulatory Authorities,RBI and SEBI working for the FIIs !?…at our expense…surely looks like it !

Just Look at some of the SEBI released figures on outstanding position of shares lent by FIIs for selling…the aggregate outstanding Participatory Note based lending position as on October 8,2008 was Rs 6493 crs across 224 stocks if you assign Prices as of this date

However the shorting  build up began even earlier…before October…The Sensex itself opened in October at 13056 and has been down hill since then…This would mean that the real value of Short sells by FIIs is over Rs 10000 crs…closer to US $ 3 Billion…some of this position may yet be open…which means short covering will lead to pull back rallies like we saw on Friday

Clearly on short covering,some of it yet remains to be done,the Profits have been in excess of US $ One Billion !…It’s an October Orchestration,facilitated by SEBI, which one can be awestruck and marvel in scale but shame at in it’s immorality,unethicality and even illegality 

I’ve taken the October 27,2008 Sensex Closing Low of 8510 to make a point  to show the extent of the Gains made on Short Covering   

Sensex

 

11328

 

8510

 24.9 %

Scrip

No of Shares

Lend

Price as on Oct 8,2008

Value in Rs Crs

Price as on Oct 27,2008

% Fall in Price

HDFC

3560323

1888

672

1461

22.6

ICICI Bank

12710276

454

577

316

30.4

RIL

2145092

1649

354

1075

34.8

L & T

3573799

967

345

724

25.1

Axis Bank

4668781

648

302

538

17

Tata Steel

8865766

338

300

169

50

Bharti Airtel

4070404

733

299

566

22.8

Reliance Capital

2765347

938

260

568

39.4

Infosys

2061118

1254

259

1252

0.2

Reliance Communication

8153350

299

244

200

33.1

Top 10 Stocks

 

 

3612

 

 

Other 214 Stocks

 

 

2881

 

 

Total of 224 Stocks

 

 

6493

 

 

If You recall that RBI had a year ago made a startling revelation that most of the FII Inflows ,75% of them, were actually Hot Money

Now with SEBI yet going soft on Participatory Notes,although it had imposed restrictions under moral pressure,  it yet allows anybody,even those Indians,with concealed loot in Swiss Banks,to play India through Registered FIIs,without the need to have their identity disclosed

FII’s have even perfected the misuse of such PNs to capitalise on lax Indian laws and regulation…Shares Held by Them in one Sub Account under PN are lend to another to sell…The Borrower later buys these shares back at lower rates,as in these times,from the Indian Markets and returns them to the Lender…making a cool difference without actually owning the shares and paying just the rental for them or possibly a part of the profits made…and moreover these gains are not subject to or hardly subject to taxes as the entities reside in tax havens

So FIIs are allowed

  • this lending Operations through PN Routes
  • Tax Free Gains

Indian Investors do not have the benefit to either…and have to face the reality of a Capitulated Indian market that shrinks their portfolio Value significantly..Oh ! they can hedge using Futures and Options,but are subject to Margins and Taxes on Derivative Gains read more

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