The :LATE :LATE MIDCAP REPORT: Where promoters wreak havoc, is there a reason to formalise insider networks?

Securities and Exchange Board of India

Securities and Exchange Board of India (Photo credit: Wikipedia)

Indian promoters as Anil says so often on CNBC India (On Menaka’s The Firm) promoters control so much of Capital that trading in the so called Mid Cap segments here the Daily Volume is in a few thousands is an exercise in futility as the promoters manage in a bid to secure their Rupee funded investment which does not track global investment valuesin Dollars consistently. More than that domestic investors would probably like more investment opportunities but can be stopped out any time by short interests or market makers’ floating stock on whims and fancies market participants are so eager to drive home. One wonders with such a prescient SEBI and a tough act for others in terms odf trading regulation and ground conditions, is not there a way to formalise insider information on those not unlike the Russell 1000 in the US which has a pretty accurate information bag to play to facilitate long only trades in such counters and list specific qualification for opening short trades on a counter esp if it passes muster on a score of negative buzz. Eminently doable if one decides to do it. After all, these are investments and everyone ants investments to grow. Apart from unreliable balance sheet data, fine line items on export and import regulations, and somewhat transparent FCCB/ECB obligation sets which are yet among the most opaque, promoters like Ajay Piramal for example are not balanced by yet unieldy and larger controlling powers of the retail investors in the Indian market than comparable trading only investors in the OECD world

To note: The author dissociates himself from well wishers and ill named friends who use proclivity as a

network to illegallly monitor and destroy relevant and irrelevant information and decision making equally.

To note: The author dissociates himself from well wishers and ill named friends who se proclivity as a netork is to illegallly monitor and destroy relevant and irrelevant information and decision making equally.

Promoters that try are probably equally to blame

JYOTHY LABS (SPIC)

MAX INDIA (33 B inflow inc 9 BLN from unrelated sales not unlike DLF – A split could make businesses worth 50B int o two orth 150 B) and not ready because ‘insiders’ would know but likely promoter stake diluions etc as it did not start abull move at 188 ( CMP 194)

PIRAMAL LIFE

ORBIT

TALWALKARS ( expansion plans are 3 times slower than offer document, always known so yyyet stuck..because of a standoff with operators/institutionals)

PRESTIGE ESTATE

M&M

MAHINDRA RESORTS

GUJRAT GAS

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s