Stash: SEBI to look into illicit arbitrage

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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 →

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‘Sebi merger to help curb manipulation’

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‘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 →

Here’s why one hedge fund manager thinks Alibaba could be a big fraud

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http://fortune.com/2015/09/18/alibaba-faking-numbers-hedge-fund/

Here’s why one hedge fund manager thinks Alibaba could be a big fraud

Jen Wieczner

SEPTEMBER 18, 2015, 5:42 PM EDT

Compared to Amazon and UPS’s figures, Alibaba’s numbers don’t add up, he says.

Alibaba has already had a terrible first year since its IPO: Its shares are down 28%. But one well-known hedge fund manager has a suspicion that, if true, could potentially destroy Alibaba’s stock completely.

In a post on his blog this week, Bronte Capital hedge fund manager John Hempton laid out reasons why the Chinese e-commerce company’s delivery figures seemed fishy. The possibility that Alibaba  BABA -1.36%  might be a fraud, he wrote, “is a thesis worth testing”—and plans to gather evidence, and potentially short the stock, depending on what he finds. Continue reading →

Can we trust Alibaba’s numbers? Auditor has never faced U.S. regulatory scrutiny; PwC Hong Kong signed only Alibaba audit, but China forbids U.S. from inspecting that firm

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Can we trust Alibaba’s numbers? Auditor has never faced U.S. regulatory scrutiny; PwC Hong Kong signed only Alibaba audit, but China forbids U.S. from inspecting that firm
Francine McKenna, MarketWatch
15 September 2015
PwC Hong Kong signed only Alibaba audit, but China forbids U.S. from inspecting that firm

Barron’s spent a lot of time analyzing the Alibaba Group Holding Ltd. numbers and strongly questioning the stock’s future, even though those numbers have never been verified by an independent third party fully vetted by U.S. regulators. Continue reading →

Barron’s: Alibaba Objects, but We Stand By Our Cover Story; Alibaba: Why It Could Fall 50% Further; The Chinese Internet giant’s stock has been plunging amid an array of problems. Expect more trouble ahead.

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http://www.barrons.com/articles/alibaba-objects-but-we-stand-by-our-cover-story-1442636537

Alibaba Objects, but We Stand By Our Cover Story

The Internet giant says our article “contains factual inaccuracies and selective use of information.”

Sept. 19, 2015 12:22 a.m. ET

Alibaba Group Holding sent a letter to Barron’s objecting to our cover story of Sept. 14, “Alibaba: Why It Could Fall 50% Further.” The letter, printed in full below, maintains that the story “contains factual inaccuracies and selective use of information.” After thoroughly reviewing the letter, Barron’s stands by the story, with the exception of one error. Our discussion of that error appears at the end of the letter. Continue reading →

Deloitte Resigns As Auditor For Tianhe Chemicals

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Auditor of Morgan Stanley-backed Chinese company resigns
Jeff Horwitz
Associated Press
18 September 2015
WASHINGTON (AP) — The auditor of a major Chinese chemical company that was the subject of an Associated Press investigation and is backed by Morgan Stanley has resigned amid accounting concerns, further damaging the prospects of Morgan Stanley‘s largest investment by its Asian private equity arm. Continue reading →

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

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

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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

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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 →