Author: bambooinnovator

Troubles are building up at Amtek Auto with bondholders of its subsidiary Castex Technologies looking to approach UK courts alleging manipulation of the company’s stock price to force a conversion of FCCBs into equity shares

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http://www.livemint.com/Companies/JFD1POTNZoXFjTa7Lw25BI/Amtek-unit-bondholders-look-to-move-UK-courts.html

Amtek unit bondholders look to move UK courts

Castex’s bondholders say firm’s stock price was pushed up to force a conversion of FCCBs into equity shares

Amtek’s problems are likely to affect several auto makers, including Maruti Suzuki and Tata Motors. Photo: Bloomberg

Mumbai: Troubles are building up at Amtek Auto Ltd, with bondholders of its subsidiary Castex Technologies Ltd looking to approach UK courts alleging manipulation of the company’s stock price. The bondholders say the stock price was pushed up to force a conversion of foreign currency convertible bonds (FCCBs) into equity shares.

Last week, shares of Amtek Auto fell 57% in response to the stand-off between the company and its bondholders and on fears of a liquidity crunch at the Delhi-based auto component firm. Continue reading →

Stock-market manipulators who think they can exploit gaps in cross-border regulation will find there is “no place to hide”, the outgoing enforcement chief of the Securities and Futures Commission has warned

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http://www.scmp.com/print/business/markets/article/1851316/rogue-stock-investors-have-no-place-hide-says-hong-kongs-market

Rogue stock investors have no place to hide, says Hong Kong’s market regulator Mark Steward

PUBLISHED : Friday, 21 August, 2015, 1:20am

Cliff Buddle cliff.buddle@scmp.com

Cross-border cooperation to catch wrongdoers having an effect, outgoing SFC enforcer says

Stock-market manipulators who think they can exploit gaps in cross-border regulation will find there is “no place to hide”, the outgoing enforcement chief of the Securities and Futures Commission has warned. Continue reading →

SFC’s outgoing crime fighter Steward warns successor to beware of nice people; Mark Steward – a look at the record of a white collar crime fighter in Hong Kong’s SFC

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http://www.scmp.com/print/business/markets/article/1851300/sfcs-outgoing-crime-fighter-steward-warns-successor-beware-nice

http://www.scmp.com/print/business/markets/article/1851067/mark-steward-look-record-white-collar-crime-fighter-hong-kongs-sfc

SFC’s outgoing crime fighter Steward warns successor to beware of nice people

UPDATED : Friday, 21 August, 2015, 1:40am

Enoch Yiu enoch.yiu@scmp.com

The Securities and Futures Commission’s outgoing white collar crime fighter Mark Steward denied he has been an aggressive regulator but warned his successor to be beware of people who are nice to them. Continue reading →

Individual investors will file a compensation lawsuit against Daewoo Shipbuilding and Marine Engineering (DSME) and Deloitte Anjin next month for allegedly committing accounting fraud

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http://www.koreatimes.co.kr/www/news/biz/2015/08/488_185223.html

Updated : 2015-08-20 21:01

Retail investors to file lawsuit against DSME

By Kim Jae-won

Individual investors will file a compensation lawsuit against Daewoo Shipbuilding and Marine Engineering (DSME) and Deloitte Anjin next month for allegedly committing accounting fraud, a law firm said Thursday.  Continue reading →

Stock manipulation: TCM, a sick company with no revenues has shot up 291%

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Stock manipulation: TCM
19 August 2015

TCM, a sick company with no revenues has shot up 291%

TCM was into production of chemicals used in industries. In 2004, it was declared sick and registered with the Board for Industrial and Financial Reconstruction (BIFR). All operations were closed as the net worth of TCM had been fully eroded. TCM has not reported any revenue from operations over the past 12 quarters. It reported an average net loss of about Rs30-Rs40 lakh in each quarter. Yet, over the past seven months, the stock has generated much trading interest. The stock price shot up 291%, to Rs82 on 10 August 2015, from Rs21 on 9 January 2015. Investment in TCM’s shares would have more than tripled in just seven months. On the BSE, trading turnover of the stock surged to Rs2 lakh per day in the first week of August 2015. On an average, the stock has reported a trading turnover of about Rs40,000 per day. Life Insurance Corporation (LIC) of India has a 23.7% stake in the company (currently worth Rs6.61 crore) while New India Insurance holds 1.46%. The insurance companies have remained invested in TCM for over a decade. TCM, with no revenues, has a current market-cap of around Rs28 crore. Will the regulator investigate the suspicious price movement and surge in trading volumes?

SEBI passed an interim order against several wealthy investors, for alleged manipulation of the stock exchange route for evading taxes

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Sebi interim order bars 59 entities from trading

JAYSHREE P UPADHYAY Mumbai

21 August 2015

Business Standard

Bars the entities for alleged manipulation of the stock exchange route to evade taxes

The Securities and Exchange Board of India (Sebi) on Thursday passed an interim order against several wealthy investors, for alleged manipulation of the stock exchange route for evading taxes. Continue reading →

Scouring accounting footnotes to prevent tunnelling; Framework needed to tackle insiders’ stealing of corporate wealth

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http://www.businesstimes.com.sg/opinion/scouring-accounting-footnotes-to-prevent-tunnelling

Scouring accounting footnotes to prevent tunnelling

KEE KOON BOON

933 words

19 August 2015

Business Times Singapore

Framework needed to tackle insiders’ stealing of corporate wealth.

IMAGINE that the S-chip (Singapore-listed China stocks) fraud with its “missing cash phenomenon” and the penny stock scandal never happened – because there was a way to prevent them.

While accounting information and disclosures may be abused to deceive, instead of being used to inform, there is a countermeasure if one only looks for it. For fraud perpetrators actually, if inadvertently, leave behind a trace of their accounting transgressions in the footnotes of annual reports.

Continue reading →

Is Your Forward-Looking Statement Safe Harbor Safe? Federal Appeals Court Reverses Dismissal and Revives Securities Fraud Class Action; Harman International Industries knowingly and recklessly propped up the stock price by making materially false and misleading statements about the company’s financial condition. In April 2007, Harman announced its potential acquisition by a private equity firm. In September 2007, however, Harman announced that the acquisition plan had been abandoned.

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Related: (1) Scouring accounting footnotes to prevent tunnelling; (2) The trouble with non-binding takeover offers that create a false and manipulated ceiling for the target company’s shares which could be pledged or faced margin calls; There are numerous examples of where such buyouts have ended in tatters and some investors getting burnt; (3) Jade’s ex-president jailed and fined over sham takeover bid to push up its share price; (4) China Cord Blood Corp (NYSE: CO) and Golden Meditech (801 HK): Accounting Facts and Footnotes; (5) Taiwan’s MOF asks banks for details of Chinese loans to two troubled Chinese companies – Frankfurt-listed Chinese shoe company Ultrasonic AG whose executives disappeared with the loan and Golden Meditech (801 HK); TSU raises question of insider trading in Golden Meditech TDRs; FSC boss quizzed on Lien’s Golden Meditech TDRs; (6) 脐带血功效被夸大 中源协和 (Zhongyuan Union Cell & Gene: 600645 CH) 核心业务受困; 胎盘脐带血自费存储乱象; 脐带血：是生命种子，还是炒作噱头？“变了味”的脐带血; 脐带血保存，一场骗局? 血疑——上海市脐血库事件调查; Inside the Private Umbilical Cord Blood Banking Business: Wall Street Journal Analysis Found Dirty Storage, Leaky Blood Samples and Firms Going Under

Is Your Forward-Looking Statement Safe Harbor Safe?

Dykema Gossett

1560 words

17 August 2015

Mondaq Business Briefing

Federal Appeals Court Reverses Dismissal and Revives Securities Fraud Class Action

A recent federal appeals court decision has cast a shadow over the protection provided by the forward looking statement safe harbor provided by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The ruling in In re: Harman International Industries, Inc. Securities Litigation (No. 14-7017) (D.C. Cir. June 23, 2015) reinstated a securities fraud class action lawsuit against an electronics company and three of its officers, who were charged with “knowingly and recklessly” propping up the company’s stock price with erroneous forward looking statements when the company was being considered for an acquisition that eventually fell through. The ruling should serve as a warning to public companies to be more vigilant in reviewing their safe harbor language and ensuring it is both meaningful and current. Continue reading →

BSE takes measures to plug tax evasion, money laundering; deep out-of-money contracts were used by entities to convert black money into white

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BSE takes measures to plug tax evasion, money laundering

Ashwin J Punnen

16 August 2015

Financial Chronicle

The Bombay Stock Exchange (BSE) is putting in place a series of measures to prevent use of its exchange platform by various unscrupulous entities to evade taxes and launder money. These measures include putting additional circuit filters on stocks that are susceptible for price manipulation and reducing the number of out of the money option contracts. The exchange recently put weekly, monthly, quarterly and yearly circuit filters on about 4000 stocks that are exclusively traded on the BSE and stocks listed on its SME and SME ITP platform. The exchange has also reduced the number of strikes in an option contracts available for trading from seven to three after it has found that deep out-of-money contracts were used by entities to convert black money into white. Continue reading →

Solar firm Hanergy is bringing its profits down to earth after related-party transactions (RPTs) stop. But the next step—getting paid by its parent—comes with strings attached. Hanergy’s parent appears to be asking for a ransom to release payments contractually due to its listed unit.

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http://www.wsj.com/articles/hanergys-high-demands-for-rehabilitation-1439811948

Hanergy’s High Demands for Rehabilitation; Solar firm Hanergy is bringing its profits down to earth, but the next step comes with strings attached

ENLARGE

ABHEEK BHATTACHARYA

Aug. 17, 2015 7:45 a.m. ET

Under regulatory pressure, Hanergy Thin Film Power is bringing down its lofty reported profits. But this once-wunderkind of the solar world may also be trying to pressure regulators into helping it merge with or buy assets from its parent. More than two months after its Hong Kong shares crashed and were suspended, Hanergy warned over the weekend that it could report a loss for the first half of the year. That is hardly surprising. Continue reading →