Stock Manipulation
Unquoted: Nicco Uco Alliance Credit

Stories of Price Manipulation

Nicco Uco Alliance Credit (Re0.26)

Once a joint venture between Nicco group and Uco Bank, Nicco Uco is a Kolkata-based financial intermediary. It has been pulled up by several regulators, including RBI, CLB, the BSE, NSDL and even the Serious Frauds Investigation Office (SFIO) for regulatory lapses. The SFIO has implicated the company for breach of Companies Act. Earlier, in 2010, the company was cautioned by RBI for unauthorised collection of deposits. The CLB, in 2005, acting on complaints received, had directed the company to repay the deposits. Its fundamentals are appalling. It has recorded zero income in the five out of past six quarters and has declared six straight quarterly losses totalling Rs70.49 crore. No wonder, the company is worthless and quotes at just 28paise  as of 20 May. Yet, it remains listed on the BSE at the expense of minority shareholders. The BSE doesn’t care about the company’s past transgressions which are serious to warrant action. No annual reports could be found on the BSE’s website.

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Unquoted: Nucent Estates

Stories of price manipulation

 
Nucent Estates Ltd was earlier Pressman Ltd, a public relations and advertising company owned by the Suchantis of Kolkata. Pressman changed its name to Nucent Finance Ltd. It was pulled up by depositories CDSL and NSDL for failing to comply with demat norms and by the BSE for failing to disclose corporate governance report. 
 
The company has now supposedly diversified into real estate business and has exited from financial services. The name has changed yet again and is now Nucent Estates (even though, for some reason, it is still listed as ‘Nucent Finance’ on the BSE). Its fundamentals are downright abysmal. It recorded virtually zero sales in the past six quarters ending December 2012 and it has recorded losses in five quarters out of these six quarters. Despite the terrible numbers, its share price has zoomed 742% over the past one year, from Rs1.28 to Rs10.78. An obvious case for investigation under SEBI’s market manipulation rules, but the regulators are sleeping, as usual.

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Unquoted: Kelvin Fincap (Rs63)

Stories of price manipulation

 

Kelvin Fincap (Rs63)

 

If you look up Kelvin Fincap’s website, nothing is mentioned about who its promoters are and what it does. It is categorised as ‘other financial services’ on the BSE’s website. There’s no annual report for FY10-11 and FY11-12 on either website. It was suspended by the BSE for non-compliance of listing agreement, on 30 November 2007. It also failed to disclose its shareholding pattern on 30 June 2011.  BSE revoked the suspension on 30 November 2011. The company employed the oldest trick in the book, to hide away its past transgressions, by changing its name from Dahyabhai Sons Ltd, on 6 July 2012, to Kelvin Fincap. Its financials are strange. The company recorded a 180% jump in revenues, from Rs5 lakh in March 2012 to Rs14 lakh in December 2012, in just four quarters. Yet, its net profits barely budged and stood at just Rs1 lakh in December 2012, roughly the same as in March 2012. The result? Its share price rocketed from Rs8.97 to Rs58.20 in the past one year, a rise of 549%. Is there a regulator in the country?

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