Technical Analysis of Indian Equities by Nooresh

L&T Finance Holdings – Kudos to SEBI for catching the Hedge Fund for Insider Trading

We had posted this article on how there was some rampant insider trading and something fishy in the L&T Finance Holdings inclusion in derivatives and timing of the OFS

 

This is the link to that article posted on 14th March

 

http://www.nooreshtech.co.in/2014/03/lt-finance-holdings-inclusion-into-futures-and-ofs-something-fishy.html

 

This is what we had written

-> Stock included into FNO on 11 March with effect from 13th March. ( NSE has never done a mid contract inclusion and such a quick effect i suppose )

-> Stock rises up the next day from 81 to 86.

-> The stock traded 3 cr shares yesterday with around 32% delivery marked. Around 1 crore shares delivery.

-> With no dividend or any other corporate action the stock was at a 5% or higher discount to the spot price in futures.

-> Yesterday in the evening company declares an OFS    

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=07289df6-d6bb-4dd5-9b3b-d1a6550e580f with a Floor Price of Rs 70.

 

-> The Open Interest is around 2.47 cr.

 

The sequence of events is very fishy.

 

Why did the stock quote at a 5% discount yesterday. Somebody had knowledge about the OFS and sold a good chunk in futures. Today the discount will reduce and so will the price.

A good 1 cr shares got sold off yesterday and a bigger chunk in Futures. The same will get covered today through the OFS of 5-8 cr shares. Somebody could have made a real chunk of money by knowing the above sequence of events stinks icon smile L&T Finance Holdings – Inclusion into Futures and OFS – Something fishy ?

 

 

Do check this article

Hedge fund banned for insider trading; Factorial was aware of the floor price, claims Sebi

Read more at:
http://economictimes.indiatimes.com/articleshow/36120270.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

Kudos to SEBI for acting quickly.

 

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JUNE 7-8TH IN MUMBAI

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http://www.nooreshtech.co.in/2014/05/technical-analysis-training-mumbai-june-7th-8th-2014.html

Also for long term investors – Last few entries left for Analyse India Big Value 2.0. Last date extended till June 10th – –http://www.nooreshtech.co.in/2014/05/last-20-entries-for-big-value-2-0-and-big-value-1-recommendation-list.html

Thanks and Regards,

Nooresh Merani

www.analyseindia.com

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nooreshtech@analyseindia.com

Article by Nooresh Merani

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