Sebi may impose floor price for stock splits to curb market manipulation

Sebi may impose floor price for stock splits

JAYSHREE P UPADHYAY Mumbai

25 September 2015

Business Standard

The Securities and Exchange Board of India (Sebi) is likely to set a floor price for companies to qualify for stock splits in order to curb market manipulation. One of the proposals allows splits only in stocks priced above ~500 consistently for the previous six months. In a stock split, a company divides its existing shares and although the number of shares increases, their total value remains intact. Continue reading

Advertisements

Stash: SEBI to look into illicit arbitrage

Stash: SEBI to look into illicit arbitrage
21 September 2015
Widening its probe into suspected tax evasion and laundering of black money through stock markets, regulator Sebi is looking into illicit ‘arbitrage’ through derivatives trading from offshore locations. Also under the scanner are manipulation through ‘client code modifications’ in the past, although there has been a complete clampdown on this route for the past couple of years.

The Securities and Exchange Board of India (Sebi) was so far focusing on trades during the fiscals 2013-14 and 2014-15 in its fight against misuse of stock market platform for tax evasion and laundering of illicit funds. Continue reading

‘Sebi merger to help curb manipulation’

‘Sebi merger to help curb manipulation’
Shrimi Choudhary and Tarun Sharma
25 September 2015

The commodities regulator Forward Markets Commission (FMC) will be history soon and the market will have its new modern and autonomous regulator in Securities Exchange Board of India (Sebi) next week. The last chairman of FMC, Ramesh Abhishek says the merger will bring more certainty and transparency in the entire commodity space. In an interview with Shrimi Choudhary and Tarun Sharma, he said the market would see more new products and participants, thanks to the collaboration. Continue reading

Fraud, financial distress fuel Asian corporate blow-ups – CLSA

Fraud, financial distress fuel Asian corporate blow-ups – CLSA
14 September 2015
HONG KONG, Sept 14 (Reuters) – Rising cases of accounting manipulation and financial distress caused by Asia’s economic downturn are driving record levels of corporate blow-ups in the region, according to a report by investment bank CLSA published on Monday.

The level of value-destroying companies in Asia, defined as offering poor return on investors’ money, has risen to a record level of 38 percent, CLSA analysts said in the report, highlighting the rising risks posed to investors. Continue reading

SEC Flexes Its Muscle On Accounting Fraud And Targets More Individuals

SEC Flexes Its Muscle On Accounting Fraud And Targets More Individuals
David Woodcock
18 September 2015
The Securities and Exchange Commission recently announced the settlement or filing of a number of significant accounting fraud cases. Coupled with recent statements by the SEC and the Department of Justice, it is clear that accounting fraud is a priority and that individuals are in the cross hairs. Continue reading

By issuing a new policy that requires companies to identify every wrongdoer within the organization, regardless of rank, or be considered uncooperative, the Justice Department is telling companies to investigate more thoroughly

http://www.nytimes.com/2015/09/15/business/dealbook/theprospects-for-pursuing-corporate-executives.html?emc=edit_dlbkpm_20150914&nl=business&nlid=36114517&_r=0

The Prospects for Pursuing Corporate Executives

SEPT. 14, 2015

By PETER J. HENNING

The Justice Department wants the message to go out that federal prosecutors will be taking aim at executives over their role in corporate misconduct by issuing a new policy that requires companies to identify every wrongdoer within the organization, regardless of rank, or be considered uncooperative. Continue reading

Incorrect accounts are the board’s problem

http://www.thestar.com.my/Business/Business-News/2015/09/19/Incorrect-accounts-are-the-boards-problem/?style=biz

Incorrect accounts are the board’s problem

Saturday, 19 September 2015

By: ERROL OH

WHEN the accounts of a listed company turn out to be unreflective of the company’s financial performance and position, there are several options for enforcement action. The worst-case scenario (for those responsible for the accounts, that is) is when the regulators take court action that may lead to heavy punishment. Perhaps the best-known example began in July 2007, when three former top executives of Transmile Group Bhd were charged with abetting the cargo airline in making a misleading statement about reported revenue of RM338mil. This referred to the company’s quarterly report that contained the unaudited consolidated results for the financial year ended December 2006. If convicted, the trio – Gan Boon Aun, Lo Chok Ping and Khiudin Mohd – are liable to a fine of not less than RM1mil and a prison term of up to 10 years. Continue reading