L & T Finance drops below Rs 80 yesterday ~ Insider Trading!?
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L & T Finance drops below Rs 80 ~ Insider Trading!? ~ 14-Mar-2014
Clearly this Offer for Sale is to bring down Parent Larsen & Toubro Equity Stake in L & T Finance Holdings to 75%
Questions arise….here are five of them :
Q 1 : Clearly the fall of L & T Finance from Rs 88 levels in the morning to close at Rs 79 levels in the afternoon appears to be related to this Notice of parent Larsen & Toubro to Offer Shares of L & T Finance at Rs 70 Floor Price today ! ~ who knew this before hand to take advantage of this Low Floor Price and sell Futures or even stock at higher levels yesterday !….and is it just a coincidence that The Offer For Sale Notifications were timed to be announced on the Day that L & T Finance began trading in the F & O Segment ?
Q 2: What Time did the Exchanges receive the Notices from Larsen & Toubro yesterday and how were these received..email,fax,hand delivery of letter….could not the Exchanges have released the first Notice earlier and then later the Notice that announced the Floor Price ?
Q 3: Check the Books of Brokers who have done an abnormally high Volume of Trade yesterday in L & T Finance in Spot & Futures to see if Insider Trading is indicated and if so who has perpetrated it?
Q 4: Why is the parent Larsen & Toubro selling the shares of L & T Finance now at such a low floor price of Rs 70,given that the latter is a front runner in being awarded a banking license that should be announced shortly by RBI….as it could, in all probability, have got a much better price later if L & T Finance is awarded a banking license!?
Q 5 : Has RBI told,on record or off, Larsen & Toubro or L & T Finance that the latters banking application will only be considered if the parent bring down the stake to 75% in L & T Finance,the license aspirant and applicant before they announce who have been awarded the new Licenses !?…and this has led to Larsen & Toubro coming out with the Offer For Sale today and it has nothing to do with March 31,2014 Financial Year Closing!….or more importantly does this Offer For Sale signal that L & T Finance will not get a Banking License !?