http://rakesh-jhunjhunwala.in/sebi-comes-to-rescue-of-punters-in-rakesh-jhunjhunwala-surana-solar-scam

SEBI Comes To Rescue Of Punters In “Rakesh Jhunjhunwala Surana Solar Scam”

Jun13th
20153 CommentsWritten by Arjun

SEBI is hot on the heels of the operators who engineered the alleged “Rakesh Jhunjhunwala Surana Solar Scam”. As an interim measure, stock exchanges have been directed not to make any payout for the transactions effected in the scrip

The “Rakesh Jhunjhunwala Surana Solar Scam” will go down in history as one of the simplest scams enacted. An operator bought a chunk of shares of Surana Solar Ltd, a little micro-cap, in the name of “Rakesh Jhunjhunwala”, the Badshah of Dalal Street. As soon as the news was made public, there was frenzy amongst the punters to grab the stock. This sent the stock price surging to an all-time high of Rs. 63. At this stage, the operator dumped his holding of the stock, leading to abnormally high volumes on the exchanges. Later, when news leaked that the “Rakesh Jhunjhunwala” who had bought the stock in the first place is not the Badshah of Dalal Street but a namesake, the stock price plunged to a low of Rs. 32. Continue reading →

http://www.thestar.com.my/Business/Business-News/2015/06/06/Can-auditors-be-insightful-transparent/?style=biz

Can auditors be insightful, transparent?

Saturday, 6 June 2015

By: ERROL OH

New standards introduce changes to increase value of audit reports

WOULD you perk up if told that the independent auditor’s report – most of us know it as those two pages in a company’s annual financial statements in which the auditors give their opinion on the accounts – would be very different 18 months from now? Probably not. From time to time, the spotlights swivels to the auditors when people question the reliability of audited corporate results, but we are otherwise indifferent to what the auditors do. Continue reading →

Kidcare mogul skips reading judgment ABCs

Liam Walsh

6 June 2015

Courier Mail

IF bankrupt childcare mogul Eddy Groves is worried about a judgment accusing him of orchestrating accounting fraud at ABC Learning Centres, he is keeping a poker face.

Mr Groves, 48, was back in Australia this week but the former ABC chief executive said he had not even seen the damning Queensland District Court judgment. Nor did he want to speak about how his subordinate, ABC’s former chief financial officer James Black, had pleaded guilty to providing misleading information to auditors equating to $46 million. Continue reading →

http://www.ft.com/intl/cms/s/0/e397847e-0b99-11e5-8937-00144feabdc0.html#axzz3cFifZTvM

June 5, 2015 6:10 pm

SEC secures $190m from CSC over fraud

Gina Chon in Washington

US authorities secured a $190m payment from Computer Sciences Corporation and the return of $3.7m in compensation from its former chief executive for allegedly manipulating financial results related to the company’s multibillion-dollar contract with Britain’s National Health Service. Continue reading →

http://www.wsj.com/articles/sec-eyes-broadened-clawback-restrictions-1433285178

SEC Eyes Broadened ‘Clawback’ Restrictions; Firms whose financial statements contain errors may have to revoke some executives’ pay

SEC Chairman Mary Jo White is under pressure to advance long-delayed post-financial-crisis rules, including several related to executive compensation. PHOTO: ANDREW HARRER/BLOOMBERG NEWS

ANDREW ACKERMAN

June 2, 2015 6:46 p.m. ET

WASHINGTON—U.S. companies whose financial statements contain errors may soon have to “claw back” some of their top executives’ compensation as a result. The Securities and Exchange Commission will soon propose long-awaited rules forcing companies to claw back, or revoke, some of their top officials’ incentive pay if they have to restate the financial results that led to it, according to people familiar with the agency’s internal deliberations. Continue reading →

The backers of 1Malaysia Development Bhd (1MDB) have argued that because international accounting firms like KPMG and Deloitte have signed off all 1MDB’s accounts from FY2010 to FY2014, this meant no money has gone missing and no fraud has occurred.

This argument has been used to justify the not-so-elegant silence of the management and board of directors of 1MDB, who have refused to respond to questions posed to them about various transactions and the movements of billions of ringgit. They hide behind that argument despite the fact that 1MDB has run into serious cash-flow problems and can no longer service its debts, and so many questions have been raised about the whereabouts and nature of the so-called Available-For-Sale Investments valued at RM13.38 billion in its accounts for financial year ended March 31, 2014 (see “Why the RM13.38 bil Available-For-Sale Investments may not be worth much”). Critics of 1MDB have been asked to back off and let the auditor-general complete his work to review the audit of 1MDB.

The argument that because 1MDB’s accounts have been signed off by auditors meant that no fraud has occurred and that money is not missing is flawed. It shows that these people do not know what they are talking about. They have badly misinterpreted, deliberate or otherwise, the role of external auditors and they do not understand the meaning of an auditor’s report when the auditors sign off the financial statement of a company.

There are NO auditors in this world who will agree that their signing off an account can in any way or form be interpreted to mean that they confirm or guarantee that the accounts are completely true, accurate and do not contain any misstatements, by fraud or error. Continue reading →

http://www.bloomberg.com/news/articles/2015-05-22/hong-kong-routs-that-wiped-out-35-billion-spur-oversight-calls

Hong Kong Investors Want More Oversight After $35 Billion Wipeout

byBelinda CaoKyoungwha Kim

May 22, 2015

After $35 billion in market value was erased from three Hong Kong-listed companies over two days, investors are asking if the city’s regulator should have done more to prevent the sudden selloff.

Goldin Financial Holdings Ltd. and Goldin Properties Holdings Ltd., controlled by billionaire Pan Sutong, plunged more than 40 percent Thursday. A day earlier, Hanergy Thin Film Power Group Ltd. tumbled 47 percent in 24 minutes before trading in the Chinese solar company’s shares was suspended. The stocks, which had surged at least 500 percent in the 12 months before the rout, can also be bought and sold by mainland investors through an exchange link. Continue reading →

http://www.scmp.com/print/business/companies/article/1804094/devere-group-has-licence-suspended-following-probe

DeVere Group has licence suspended following probe [1]

Submitted by kerry.nelson on May 19th 2015, 10:46pm

Business›Companies REGULATION

Benjamin Robertson Benjamin.robertson@scmp.com

CIB decision follows investigation into financial advisory firm’s sales practices by regulators

Financial advisory firm deVere Group Hong Kong has had its licence suspended as part of an investigation into its operations by regulators. The Confederation of Insurance Brokers (CIB), one of two self-regulated bodies that supervise local brokers, said yesterday it had suspended deVere’s membership until a disciplinary investigation had concluded. Continue reading →