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
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
https://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
Do check this article
Hedge fund banned for insider trading; Factorial was aware of the floor price, claims Sebi
Kudos to SEBI for acting quickly.
If you would like to Learn Technical Analysis and become independent we are conducting a course on
JUNE 7-8TH IN MUMBAI
. Check details
Also for long term investors – Last few entries left for Analyse India Big Value 2.0. Last date extended till June 10th – –https://www.nooreshtech.co.in/2014/05/last-20-entries-for-big-value-2-0-and-big-value-1-recommendation-list.html
Thanks and Regards,
Twitter – https://twitter.com/nooreshtech
Facebook – https://www.facebook.com/nooreshtech