Concurrent India Infrastructure kept silent for more than a month after announcing a power deal with Sikkim Power, and issued a clarification only after the latter refuted any deal with it. The BSE is silent—which encourages such malpractices
Moneylife has reported on how the media is being used to spread positive news about a company to stop its share price from falling further. We have come across one such company, which itself is propagating false announcements of its project wins. The saving grace was that investors ignored this 'positive' news.
On 10th May, Mumbai-based Concurrent (India) Infrastructure Ltd, in a regulatory filing said, "Concurrent to Develop Hydro project in Sikkim through PPP Mode". According to the release, Concurrent was all set to enter into an agreement with Sikkim Power Development Corp Ltd (SPDC) through PPP model to develop a 40MW hydro-project, estimated to cost Rs111.2 crore, at Labdang in Sikkim.
The company said that it had already spent Rs30 crore on developing preparations of Detailed Project Report (DPR); procurement of land and statutory clearance; access road and bridge at the site; a 30-metre tunnel and other civil works.
The release also quoted Concurrent's director and chief executive officer K Sudhir Babu as saying, "With this (deal), Concurrent will have a foothold in Sikkim. As per estimates, in Sikkim, (the) hydro-potential is 9,000MW, out of which only 4,000MW has been allotted."
Since the announcement was made after trading hours, next day, on 11th May, the Concurrent share opened Rs0.65 higher at Rs33.00 from its previous closing price on the Bombay Stock Exchange (BSE). However, at close, the shares fell by Rs2.1 to Rs30.75. During 10th May and 16th June (the day when Concurrent clarified that it had not signed any deal in Sikkim), Concurrent shares moved in a band between Rs29.55 to Rs34.80.
On 14th June, SPDC clarified that it has not entered into any kind of understanding or agreement with Concurrent (India) Infrastructure Ltd for development of a 40MW hydropower project in the State. According to a press statement, SPDC manager Palchen D Chaktha refuted any such development with Concurrent. He also said that SPDC has neither entered into any kind of agreement with Concurrent nor is it considering allotment of any project to the company in the near future.
Following the denial from SPDC, on 16th June, Concurrent said that it has not entered into any agreement yet in this regard and is still under the process of negotiations through various channels for a possible proposition of an agreement, if the efforts for the same fructifies.
The company conveniently kept mum throughout the period between its first announcement and subsequent denial by SPDC. Passing on the blame to the media, Concurrent said, "(The) Company through its press release dated May 09, 2010, stated very clearly that the Company is all set to enter an agreement for the said purpose, however the same was interpreted by some websites as such that (the) Company has entered already into an agreement."
Interestingly, the heading for its earlier announcement was "Concurrent to Develop Hydro project in Sikkim through PPP Mode" and not "Concurrent may Develop Hydro project in Sikkim through PPP Mode", if at all it was still at the negotiation stage.
We asked BSE officials if they will initiate any action against the false filing by Concurrent. However, until writing the story, there was no response from the Exchange. By keeping mum, the stock exchanges, which are the first level in stock market regulation, encourages such practices. As Moneylife magazine reports in every issue, misinformation and price-rigging is rampant in the BSE which the authorities turn a blind eye to.
The new online facility will also enable taxpayers to register their complaints and file applications to the I-T Ombudsman in 12 cities across the country
The Income Tax (I-T) department will soon launch an Internet-based grievance redressal system for taxpayers to lodge their complaints with taxman, reports PTI.
The new online facility will also enable taxpayers to register their complaints and put applications to the I-T Ombudsman present in 12 cities across the country including Mumbai and Delhi, the two topmost tax paying regions respectively.
Currently, taxpayers can file their tax returns online by logging on the official website of the department-www.incometaxindia.gov.in.
According to a senior I-T department official, the grievance redressal facility will either be made available on the official website of the department or a new portal would be launched.
"Grievances related to tax refunds and delay in services rendered by the department like allotment of various tax numbers among others could be lodged on the new e-support system," the officer said.
The department is presently conducting a trial run of the new facility and once fully satisfied, it will connect all the department offices with the network.
After registering online complaints, the taxpayer will also receive an acknowledgement number, which would have a fixed time limit that will ensure that it is redressed within a stipulated duration.
As of now, taxpayers have to throng the tax department's offices in order to get their complaints resolved for redressal of a number of services.
The online facility will aim to create a hassle-free facility for tax payers across the country, the officer added.
The I-T department's online facilities currently feature services like e-payment of taxes, filing of TDS returns, Annual Information Returns, Online Tax Accounting System (OLTAS), Tax Return Prepares Scheme (TRPS), Tax Information Network and help desk, as well as tax payers queries and feedback services.
As suspected, the market corrected today but the up-move is not over
The market ended its seven-day winning streak to end in the red, led by Reliance Industries (RIL) as its annual general meeting (AGM) was short of investors' expectations. The Sensex ended at 17,570, down 45 points (0.2%) while the Nifty settled at 5,262, down 12 points (0.2%). The benchmarks started the day with gains. Trading was range-bound with the market slipping into negative terrain around noon. It managed to recover, but profit-booking pulled the indices lower again.
Asian stocks were mixed as concerns over the US economic recovery weighed on investors. Key benchmark indices in China, Singapore, Japan, and Taiwan were down between 0.04% and 1.8%. Indices in Indonesia, South Korea, and Hong Kong were up by 0.2% to 0.9%.
US markets gained in late trade on Thursday, to end with modest gains despite a worse-than-expected reading on manufacturing activity in the Philadelphia area and an increase in jobless claims. The Dow was up 24.7 points (0.2%), to 10,434. The S&P 500 was up 1.4 points (0.1%) to 1,116 and the Nasdaq was up 1.2 points (0.05%) to 2,307. This is the ninth straight day of rally for world markets which regained losses posted on concerns over the euro debt crisis.
Spain sold treasury bonds worth €3.5 billion on Thursday, which will provide liquidity to the debt-ridden economy. The International Monetary Fund (IMF) praised the country's effort to tackle its debt and deficit issues.
Back home, exports in May were up 35% over the year-ago period, trade secretary Rahul Khullar said. Imports have been up 30% over the year-ago period.
Reserve Bank of India (RBI) governor D Subbarao said that inflation is getting more generalised with the demand side pressure building up in the economy. The RBI will take a calibrated exit from the loose monetary policy, he added.
Foreign institutional investors were net buyers of equities worth Rs462 crore on Thursday. Domestic institutional investors were net sellers of Rs363 crore.
The board of ITC (up 0.1%) has recommended the issue of bonus shares in the proportion of one bonus share of Re1 each for every existing ordinary share of Re1 each. The board also approved an increase in the authorised share capital from Rs500 crore divided into 500 crore ordinary shares of Re1 each to Rs1,000 crore divided into 1,000 crore ordinary shares of Re1 each. The company will seek approval of the shareholders at the annual general meeting (AGM) to be convened on 23rd July.
Larsen & Toubro's (up 1.2%) buildings & factories arm has secured orders aggregating Rs1,440 crore for the construction of residential towers, township and factory buildings. L&T has secured new orders aggregating Rs1,294 crore for the construction of residential towers and townships from leading developers and clients. Majority of the above orders have been secured on a design-and-build basis. Further, orders worth Rs146 crore have been secured from various clients, including add-on orders from the ongoing factory jobs.
Unitech (up 0.3%) said that, further to the allotment of 10,90,56,781 shares upon conversion of equivalent number of warrants on 29 March 2010 and 2 June 2010, the company has further allotted 2 crore equity shares of Rs2 each at a premium of Rs48.75 per share to Harsil Projects Pvt Ltd, a promoter group company, upon conversion of 2 crore warrants, by way of preferential allotment.
The promoters' shareholding in Unitech after such allotment on conversion of warrants has increased to 46.72% from 46.30%. The company had issued 22,75,00,000 warrants convertible into equal number of equity shares at the aforesaid price within a period of 18 months.