Day: May 11, 2015

Toshiba Set to Drop by Limit on Extended Accounting Probe in Understated Construction Costs

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http://www.bloomberg.com/news/articles/2015-05-10/toshiba-poised-to-plunge-in-tokyo-on-extended-accounting-probe

Toshiba Set to Drop by Limit on Extended Accounting Probe

byPavel AlpeyevTakashi Amano

7:40 AM SGT
May 11, 2015

Toshiba Corp. lost $2.8 billion in market value after the industrial and electronics group withdrew its earnings forecast pending an internal probe into improper accounting on infrastructure projects. The shares fell 17 percent, the biggest drop since March 2011, to 403.3 yen in Tokyo. The company announced it was extending an accounting probe and withdrawing its earnings forecast for last fiscal year on May 8, after trading had closed. Continue reading →

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Pledging shares by promoters increases risks

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http://www.business-standard.com/article/pf/pledging-shares-by-promoters-increases-risks-115051100285_1.html

Pledging shares by promoters increases risks

Share pledging can raise a red flag if done for personal reasons such as buying property

Ashley Coutinho  |  Mumbai 

May 11, 2015 Last Updated at 12:30 IST

Last  year, shares of Bhushan Steel took a beating after its lenders invoked nearly 14 million pledged shares held by the company’s promoters. Pledging of shares by promoters can be a cause for concern especially when the market is going through uncertain times.  Continue reading →

Who looks after the minority investor? An independent report found instances of related-company transactions by United Spirits, prior to the takeover by Diageo, not disclosed earlier. Recovery of amounts lent to related companies is in doubt, to the detriment of minority shareholdes.

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http://www.hindustantimes.com/analysis/who-looks-after-the-minority-investor/article1-1345285.aspx

Who looks after the minority investor?

J Mulraj

8 May 2015

Hindustan Times

India, May 8 — Stock Exchanges in India used to be self regulatory organisations (SROs) earlier. After being hit by the scandals of Harshad Mehta, and then of Ketan Parikh, the Government decided that self regulation was not working, and set up SEBI as a regulator. Thereafter, due to some stellar work by SEBI, there has not been any major crisis in stock markets. A scandal has erupted, though, in a commodity exchange, NSEL, due to a lack of proper oversight by the regulator FMO, (or by the absence of adequate power given to FMO to regulate it) and also by the inexplicable latitude given to NSEL by the then Ministry of Corporate Affairs in granting exemptions. NSEL await justice for an outright fraud and the delay by the Government is inexplicable, and dissuades investors.

The danger to minority investors, globally, now comes more from corporate scandals, and it is here that the question in the title needs to be answered. Continue reading →