After supporting the Congress in winning the Trust Vote on the Indo Nuclear Deal I was wondering when would Amar Singh of the Samajwadi Party launch his attack on a man he hates,Mukesh Ambani…he bluntly disclosed this in a TV Interview a few months ago
Well,he’s started doing so….he and his party have moved SEBI to probe the Insider trading in Reliance Petroleum and Jai Corp
A letter by Amar Singh addressed to the Chairman of SEBI,C B Bhave,has demanded a probe into the RPL matter under Sec 11C of the SEBI Act and the SEBI (Prohibition of Insider Trading) Regulations
Amar Singh has provided details of how promoters,insiders and other associates of the Reliance Group became “unjustly” richer by over Rs 1000 crs.He has provided details of how they illegally sold RPL Futures between November 1-6,2007 armed with inside information of the impending part sale of the RPL holding by RIL….they made huge insider profits when RPL price fell sharply
Amar Singh has also demanded an inquiry into ‘‘large scale price manipulation in the shares of Jai Corp Ltd’’ in the last two years.
Singh’s letter dated July 28 also alleged that the manipulation had taken place under the nose of the market regulator SEBI and also the stock exchanges, which exhibited total lack of action by regulatory authorities and complete failure of its surveillance machinery.
Jai Corp is owned by Anand Jain (very close to Mukesh Ambani….regarded by many as Dhirubhai’s third son) and his family.
If you recall last year in a Bulk Deal on October 15,2007 after the Record date of October 12,2007 for Bonus Issue of 1:1 and Split of Shares from Rs 10 to Rs 1 FV,The Jain Family sold 2.19 crore Shares (12.69% of Equity) at Rs 1035 xb/xs and Rs 1036 xb/xs to a host of FIIs and Domestic Funds like Morgan,Merrill Lynch,Goldman Sachs,Citigroup,Barclays and Birla Mutual Fund…It was one of the largest deals of it’s kind of over Rs 2250 crores…Check it out on
Jai Corp is engaged in SEZ Developments in Vashi and Panvel Regions.The Share price currently has dropped to Rs 435 with Promoters now holding 72.54 % of the equity through eighteen shareholders….Ten are of the Jain Family and Eight are Companies
RPL had surged in 2007 and was made to zoom to near Rs 300 to facilitate the offload of 5% stake held by RIL and then drifted back lower to below Rs 150 after the stake sale…..Jai Corp too was controlled over 85% by the Jain Family before the stake dilution and it’s share price had a meteric rise to over Rs 15000 (FV Rs 10 and cb/cs) in October last year….making crores for those who had inside knowledge of things to come in this Company and who had acquired the shares at a price in the Hundreds.
As is often observed and noticed that SEBI rarely reacts to such huge manipulations where Big Guns are involved……gives power to the belief that in India only Insider Trading Prevails