Insider Trading in Cambridge Solutions ?

Check out the takeover story of Cambridge Solutions in Business Standard of yesterday 

http://www.business-standard.com/india/storypage.php?autono=336391

Now check out the Trading Pattern on the BSE in Cambridge Solutions from Last week September 2008 till date

Cambridge Solutions on the BSE

Date

Close

(Rs)

Volume

No of Shares

No of

Trades

Turnover

(Rs)

22 September 2008

43.40

6290

70

270,518.00

23 September 2008

42.00

4146

53

177,063.00

24 September 2008

42.05

980

32

41,385.00

25 September 2008

40.55

8662

88

352,803.00

26 September 2008

44.60

10% uc

75729

285

3,371,735.00

29 September 2008

49.05

10% uc

77437

123

3,797,784.00

30 September 2008

53.95

10% uc

110107

706

5,819,384.00

1 October 2008

56.60

5 % uc

84247

230

4,764,517.00

3 October 2008

59.40

5 % uc

23092

118

1,371,664.00

6 October

2008 till 1 pm

62.35

5 % uc

46517

58

28.98 lakhs

uc = upper circuit

You can see that it’s now the sixth straight trading day that the Share Price is on Upper Circuit and the Volumes have exploded from September 26,2008

Also till date there is no announcement for this takeover on the BSE web site

The advisors to Xchanging Plc,UK for the takeover of 75% of Cambridge Solutions for Pounds 83 Million or Rs 688 crores (Rs 371 Crs cash + 7% Shares of Xchanging plc) are Citigroup Inc and UBS AG

The takeover deal was not made public till October 4,2008   and was covered by the press only on October 5,2008

So who’s playing Insider here on BSE  ?  Who leaked the Deal  ?  The Advisors  ?  Company Circles ?

I know the Turnover Quantum may not excite either BSE Survelliance or even the regulator SEBI…but it’s the principle of the matter that’s the issue here

In this trying week when the Sensex has dropped over 2000 points to fall to even below 12000 today,those insiders who picked up Cambridge Solutions on September 26,2008 at Rs 44.60 have made a clean 40% in just six trading days !

The Point is…Is BSE or SEBI going to do anything about it !?

Your guess is as good as mine ! 

2 thoughts on “Insider Trading in Cambridge Solutions ?

  1. BSE has been a Broker’s Bastion for over 130 years..so it’s not easy to ease away vested interests of Brokers…BSE learnt a hard lesson when NSE was created in the early 1990s by Instititutions to counter the Closed Club that BSE was
    It is expected that Demutualisation and Diluting BSE Equity beyond Brokers to even Foreign Exchanges will bring in professionalism…Let’s see how all this unfolds…The Process to appoint a new CEO is on

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