Companies & Sectors
Money Matters Financial raided by Central Bureau of Investigation

Money Matters Financial Services Ltd. which raised Rs445 crores in November from four top foreign investors, has been under a CBI raid since last night

Money Matters Financial Services Ltd. (MMFSL), a Mumbai-based non-banking finance company (NBFC) was raided by a large team of officials from the Central Bureau of Investigation investigating irregularities regarding market-related transactions attached to politicians.

Money Matters, until recently a small-time NBFC into debt market financial services company (debt syndication, debt placement) managed to raise a stupendous Rs445 crore at Rs625.25 per share in late October through Qualified Institutional Placement (QIP) from top investors to supposedly to grow its asset financing business such as short-term corporate funding, structured product funding, margin funding and acquisition funding to corporates. 

The deal had raised a lot of eyebrows. At a time when NBFCs and debt market brokers have been struggling to grow their businesses, it was amazing that a company like Money Matters with little pedigree could raise Rs445 crores from four renowned institutional investors Morgan Stanley, Wellington, Fidelity and GMO. These investors picked up as much as 60% of the placement. The lead manager to the issue was India Infoline.  

Rajesh Sharma is chairman and managing director of MMFSL. The CBI is apparently investigating whether MMFSL was involved in deals with political connections. Recently, IL&FS Milestone Fund had picked up a 74% stake in HCC Park, a 1.8 million square feet commercial property located in Vikhroli in Mumbai for around Rs 575 crore. Interestingly, Money Matters Financial Services Ltd was the sole advisor to the deal. HCC's promoter Ajit Gulabchand, who is setting up a controversial township called Lavasa near Pune, is known in market and business circles to be close to Agriculture minister Sharad Pawar.

The stock of Money Matters which was languishing at Rs7 in late 2007, jumped to around Rs120 in early January 2008 and fell to Rs50 in April 2009. Since then, it rose vertically all the way to Rs787 in the last week of October just after the QIP. Yesterday, the stock was quoted at Rs663.90.

What is today Money Matters, was incorporated as Daiwa Securities Limited on November 15, 1994. The Company’s name was changed to Dover Securities Limited on May 19, 1999 with its registered office at 501, Shubham, 1, Sarojini Naidu Sarani, Kolkata-70001. The registered office was shifted to 1-B, 1st Floor, Court Chambers, 35, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020. In March 2008, Dover bought over unlisted Money Matters Securities P Ltd. On 6th October 2008, the name was changed from Dover Securities Limited to Money Matters Financial Services Limited. 




5 years ago

company ne daiwa securities ke bahut se shareholder k share ko company name change ka sticker nahi bheja hai.aur na hi koi information di hai. ???????? pata nhi kyo ?? company ki soch kya hai. daiwa ke share holder ko money matter ka share milna hi chahiye.

Suman Mukherjee

6 years ago

Good report, as usual by Money Life which exposes the underbelly of the financial markets. However, what I feel is that since the company was able to raise mammoth funds as high as Rs.445 cores (against the current market cap of Rs.441.61 crores) from four renowned institutional investors Morgan Stanley, Wellington, Fidelity and GMO; who picked up as much as 60% of the placement, there chould be something unique in the business model of the company. Who knows??!!
The company is to declare results Next Week tentatively. It seems the scrip is beaten down more than it deserves and the scrip (Money Matter Financial Services Ltd) is expected to cross Rs.250 comfortably in the days to come.

Zoher Doctor

6 years ago

Fixers must be disclosed and punished. Hats off to Media for disclosures.


6 years ago

One of the leading private sector banks has overexposed itself by financing various Infrastructure projects including that of LAVASA. CBI should conduct the inquiry against the Ex DMD and other senior officials including the present DMD, Executive Directors and President - Risk for their vested interest in financing the project and holding disproportionate wealth they have accumulated in their family members name.



In Reply to Ax 6 years ago

Dear Ax, Axis Bank is having exposure in HCC, LAVASA, HDIL, DB, Suzlon and hence involvment of Money matters and the Directors could not be ruled out. And i feel that is why Axis Bank is down by 2% where as other private banks are up

R Balakrishnan

6 years ago

There are hundreds of 'fixers' who are needed to grease the wheels of finance and industry. Some are big name accounting firms, some are brokers, and many operate out of suitcases. These guys must have rubbed someone badly to actually get caught.

Wednesday’s Market Preview: Soft-to-flat opening expected

The Indian market is likely to witness a soft-to-flat opening on concerns over the geo-political tensions in Korea and the slowing pace of the global economic recovery. Tensions in Asia spooked the US markets overnight causing key indices to drop between 1% and 1.5%. Markets in Asia were mixed in morning trade on Wednesday on account of the developments in the Korean peninsula and on the lingering debt crisis in Europe. The SGX Nifty was up eight points at 5,942, as compared to its previous close of 5,934.

The domestic market was highly volatile yesterday on the back of the developments along the Korean border and over concerns over the political future of the UPA-led government, which has been rocked by corruption allegations. The Sensex opened at 19,841.42; 116.17 points lower compared to its previous close of 19,957.59. It hit an intraday low of 19,342.69-which is the maximum low in the past three months from 16 September 2010 and closed at 19,691.84, 265.75 points down (1.33%) from the previous day's close. The Nifty ended 75.25 points down (1.25%) to 5,934.75.

The US markets closed sharply lower on Tuesday following tensions after North Korea artillery shells at a South Korean island. In economic news, the Federal Reserve on Tuesday revised downwards economic growth forecasts for next year. Besides, a fall in sales of existing homes in October made investors wary of the pace of economic growth in the world’s largest economy.

The Dow tumbled 142.21 points (1.27%) to 11,036. The S&P 500 shed 17.11 points (1.43%) to 1,180. The Nasdaq declined 37.07 points (1.46%) 2,495.

Markets in Asia were mixed due to tensions in Korean peninsula and on continuing debt problems faced by members of the European Union further aggravated by rating agency S&P cutting Ireland’s credit rating. The pace of economic recovery in the US, punctuated by the Fed’s lowering of economic growth forecasts for the next year also played on investors’ minds.

The Shanghai Composite surged 0.85%, the Hang Seng jumped 1.08%, the KLSE Composite gained 0.11%, the Straits Times advanced 0.70% and the Taiwan Weighted rose 0.03%. On the other hand, the Nikkei 225 tanked 0.75% and the Seoul Composite lost 0.23% in early trade this morning. . The SGX Nifty was up eight points at 5,942, as compared to its previous close of 5,934.

A committee appointed by the Securities and Exchange Board of India has opposed listing of stock exchanges on bourses arguing that any downward movement of their share prices could hit the credibility of the market institutions.

The recommendation of the Bimal Jalan Committee, if accepted, would derail the plans of the country's two premier bourses—the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)—to go public.

In another development, the MCX Stock Exchange on Tuesday said the recommendations made by a SEBI-appointed committee on bourses would promote monopoly and anti-competitive business practices in the market.

Without naming the largest stock exchange NSE, rival MCX-SX said the recommendations made by the Bimal Jalan committee “would continue to protect the monopolistic market structure and the perverse anti-competitive practices adopted by some.”


MCHI seeks CM’s intervention for uniformity on carpet area

Maharashtra developers body says adopting carpet area norm for sale of flats requires change in Development Control Regulations

Maharashtra Chamber of Housing Industry (MCHI), a representative body of builders and developers in Maharashtra, has sought the state government's intervention to remove irregularities in the Development Control Regulations (DCR), for adopting the carpet area norm in the sale of flats.

Sunil Mantri, president of MCHI, has said in a letter to the Maharashtra government that it is difficult to implement the government's regulations because of various constraints and he sought chief minister Prithviraj Chavan's intervention in the matter.

Explaining the difficulties, Mr Mantri said, the Brihanmumbai Municipal Corporation sanctions the building permission plan based on built-up area, which covered the staircase, passage, lift well, lobby, plinth and common areas that are also taken into account for the purpose of the floor space index (FSI).

The association had requested that the urban development department shift to sanctioning the building permission plan based on the carpet area. But the department has not arrived at any decision on this as yet.

"We are willing to adopt sale of flats on carpet area basis which will enable us to implement the government's stated intention. It is very essential with a view to bringing a uniform practice for the sale of flats on a carpet area basis by all developers," Mr Mantri said. "For this purpose only a minor modification in the Development Control Regulations is needed."

Mr Mantri also said that while the government was insisting on developers following the carpet area norm, the stamp duty is being charged on basis of built-up area. He said that stamp duty charges should also be on a carpet area basis.

"One authority permits projects on built-up area and another asks developers to sell flats on a carpet area basis, this is unjustified. Hence, we urge you to intervene in the matter and accord your approval for sanction of the building permission plan and stamp duty on a carpet area basis. This approval will enable MCHI to direct all the developers under its umbrella to sell flats on a carpet area basis," Mr Mantri said.


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