SEBI investigations revealed that Monalisha Securities, a sub-broker of Intec Shares and Stock brokers, indulged in structured deals during the period.
The Securities and Exchange Board of India (SEBI) has fined Monalisha Securities Rs2 lakh for manipulating the Videocon and NRB Bearing scrips. These scrips were manipulated between 1 May 2004 and 15 June 2004.
SEBI investigations revealed that Monalisha Securities, a sub-broker of Intec Shares and Stock brokers (ISSBL), indulged in structured deals during the period.
SEBI's investigation revealed that delivery of shares were neither given nor taken, creating artificial volume and impacting the price of the scrips.
Monalisha Securities was involved in 16 structured deals across six settlements in Videocon on the NSE. On all six days, the transactions were reversed within a minute of the first trade and positions at the end of the day used to be nil. The total quantity traded in all these deals was 74,000 shares.
Similarly, in the NRB Bearings scrip 24,000 shares were traded in total across 13 structured deals on three days and the same story was repeated. The trade had been done through the broker ISSBL for its ultimate client Classic Investments on three days for 12,000 shares and contributed for 27.54% of the gross traded quantity of the market. Classic Investments had not done any delivery based trading. When structured deals took place, the trade was reversed within a minute of the first trade. The total quantity traded in all these deals is 24000 shares. In all these deals, the counter-party was Mansukh. Mansukh booked losses and ISSB, profits.
This clearly indicates that the orders were placed with a prior understanding that those will be picked up by a particular client on the opposite side, which also indicates that there was a prior understanding with the brokers who had dealt on its own account and for clients and executed large number of such transactions. Such type of transactions can not be called genuine transactions.
Finance minister said the CAG is a constitutional body created since the time of Britishers and its job is to find faults with the government.
The government today downplayed the draft CAG report on coal block allocations with Finance Minister Pranab Mukerjee stating that 90% of the issues raised by the auditor at initial stage are dropped.
“After obtaining comments of the ministries, 90% of the issues raised by the CAG (Comptroller and Auditor General of India) are dropped. That is the normal practice and it is going on for the last 150 years,” the Finance Minister said at a FICCI meeting. He said the CAG is a Constitutional body created since the time of Britishers and its job is to find faults with the government.
“I have repeatedly stated (its job is) to find out fault and not to praise the government and certify that government has done a good job. Why... unneccessary... sensationalisation takes place,” Mr Mukherjee asked and added, “what is new if the irregularities are found out in the CAG report and those are to be addressed by Parliament.”
Based on the CAG draft report, he said, it was stated that there is a Rs10 trillion shortfall in the exchequer because of the coal allocation. The issue has rocked Parliament after which the Prime Minister Office released a letter received from CAG stating that report in the newspaper was misleading.
Mr Mukherjee said that it is up to Parliament to take a call on the CAG reports.
“The fact of the matter is that it is not a report by itself. CAG is yet to finalise its report,” he added.
The report, he said, will go to Public Accounts Committee (PAC), which will send its views to Parliament.
CAG, he said, “himself explained in its letter to the Prime Minister that no further clarifications are required and needed.”
The government borrows funds from the market to bridge revenue-expenditure gap and also roll over the past debts which mature for repayment
The Finance Ministry and the Reserve Bank of India are likely to finalise the market borrowing programme for the first half of the next financial year on 27 March 2012.
“The meeting for deciding the borrowing plans for the April-September period of 2012-13 may happen on 27 March 2012,” official sources said, adding the efforts would be made to complete the government's borrowing programme in a non-disruptive manner.
The government borrows funds from the market to bridge revenue-expenditure gap and also roll over the past debts which mature for repayment.
While unveiling the Budget proposals for 2012-13, Finance Minister Pranab Mukherjee had said that the net market borrowings for the fiscal would be Rs4.79 trillion, up from Rs4.36 trillion estimated in the current fiscal.
Last year the government had exceeded the budgeted borrowing target by over Rs92,000 crore as high subsidy expenditure led to overshooting of government finances. For 2011-12, the government's gross market borrowings have been estimated at around Rs5.1 trillion. The government plans to bring down fiscal deficit in the 2012-13 fiscal to 5.1%, from 5.9% in the current fiscal.
“This year we are trying to keep the subsidies under check. So we expect the borrowing to be as per the budget target,” the official said.
The government plans to bring down subsidies to less than 2% of GDP in the 2012-13 fiscal, from 2.5% in the current fiscal.