Did Directors of Kesoram Industries Indulge in Insider Trading and Short-change Minority Shareholders?
Updated on 1 August 2018 to add clarifiction submitted by the company to stock exchanges.
 
The directors and promoters of BK Birla group company Kesoram Industries have allegedly indulged in large-scale insider trading in the process short-changing minority shareholders hundreds of crores. The trail of such wrongdoing was recently alleged by a shareholder Janardan Kothari at the annual general meeting (AGM) of Kesoram Industries on 13 July 2018. Moneylife has reviewed the documents shared by Mr Kothari and pieced together the alleged modus operandi of this episode. The company’s stand at the AGM was that, “We will not take the question of related party and that it can be discussed separately”.
 
As of 31 March 2015, Kesoram held 27.46 lakh shares of Century Textiles. On 22 March 2016, Kesoram sold all these shares to Camden Industries for Rs141 crore in a bulk deal. In FY17-18, Kesoram invested another Rs400 crore in Cygnet Industries, its wholly owned subsidiary. Cygnet Industries used this amount to buyback 27.46 lakh shares of Century Textiles from Camden Industries in three transactions on 5th, 11th and 12 December 2017; for Rs355 crore. Thus, it is alleged...
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COMMENTS

Veeraiah Bandlamudi

3 weeks ago

Thank you MoneyLife for updating this news item. We have created WhatsApp Group for "Kesoram Industries Shareholders Forum" to track the company and actively participate as shareholders. We have currently more than 20 members. We are planning to send individual letters to Company Secretary with our requests within the next few days.

If you are interested to join WhatsApp group, please send your mobile number to 9840307892 or [email protected]

We, long term genuine shareholders, need to be active investors. We can't make our company destroy the shareholders wealth.

Veeraiah Bandlamudi

2 months ago

Company Secretary of Kesoram Industries responded to the explanation from Stock Exchanges. It emphasized on the investment by promoters via rights issues and preferential issue. They said they are interested in the company by buying shares at Rs 175/- when the market price was Rs 120. May be Mr. Janardan Kothari bought the shares in March, but, there are lot of investors waiting for this company to perform for more than 5 years. I know promoters don't need quick gains as they are invested for 100 years. But, the common investor needs some dividend and capital appreciation.

But, it didn't clearly explain why they invested in Century Textiles again when they had so much of debt.

Let us (minority shareholders) maintain WhatsApp group and keep discussing our plan of action. I am happy to manage this group. I am giving here my contact details: Please send your mobile number to 9840307892 or [email protected]

rihanahmad

2 months ago

How do we punish these defunct directors and particularly the independent dircetors considering that Board has not answered the allegations and therefore their complicity is implied. Very shameful . I have decent qty of shares and donno what i do to recover the losses. It goes without saying that something is wrong in the DNA of these Birlas .

REPLY

Veeraiah Bandlamudi

In Reply to rihanahmad 2 months ago

Let us (minority shareholders) maintain WhatsApp group and keep discussing our plan of action. I am happy to manage this group. I am giving here my contact details: Please send your mobile number to 9840307892 or [email protected]

We will make this a big group and will fight in the 100th AGM. We will also come up with other means of fighting meanwhile. Request all the shareholders send their mobile numbers to my contact details provided above.

Veeraiah Bandlamudi

2 months ago

Dear Mr. Janardan Kothari, I would like to know your thoughts on what is going to happen now. Holding major portion of my portfolio in Kesoram. Never expected Birlas cN take this company this low.

Veeraiah Bandlamudi

2 months ago

Why Kesoram board is unable to respond to exchanges on the clarifications sought ?

The Exchange has sought clarification from Kesoram Industries Ltd with respect to news article appearing on www.moneylife.in - July 13, 2018 titled "Did Directors of Kesoram Industries Indulge in Insider Trading and Short-change Minority Shareholders?".

Praveen Gorthi

2 months ago

It is interesting to know such things are happening with reputed ones. Thanks for an effort. Keep educating retail share holders..

Pradeep

2 months ago

Thank you for exposing the directors of Kesoram. Pretty disappointing how the shareholder has been treated in the AGM. Good indicator to exit the investment made in Kesoram.

REPLY

Veeraiah Bandlamudi

In Reply to Pradeep 2 months ago

How can we exit with losses. We have to fight and make them run the company in professional manner.

Veeraiah Bandlamudi

2 months ago

I am new to Money Life. I got to know because I was searching for Kesoram news. I hope BK Birla doesn't influence Money Life

REPLY

Sucheta Dalal

In Reply to Veeraiah Bandlamudi 2 months ago

Instead of hoping about what BK Birla does or does not do -- why not google a little and find out more about Moneylife ?? These kind of comments are what have killed independent journalism and disheartened otherwise idealistic journalists -- as far as readers go, everybody is suspect and it is damned if you do and damned if you don't. We are even careful about accepting so-called scoops or leads -- because even if we fail to find time to check or corroborate information (which is rarely backed up with proof), the so-called whistleblower will turn around and allege that people are compromised!

Veeraiah Bandlamudi

In Reply to Sucheta Dalal 2 months ago

Sorry Madam, I didn't know that you are the Managing Editor of MoneyLife. Apologies for making that comment. I know you created awareness to the minority investors of Tata Companies whose money was getting invested in Tata Sons. This was 23 years back. You were correct that day. I have documented on how much minority investors lost in the last 23 years. See, now they want to make Tata Sons private. If justice doesn't happen to minority investors in such a reputed group, what can we do.

Actually my comment was intended for Mr. BK Birla. If he sees that and take some action, Kesoram investors will get benefit out of that. I have already lost 55% in Kesoram. I hope you understand my pain. I try to avoid investing in small and midcaps companies. SP Tulsian told that KM Birla owns major stake in Kesoram. We believe in big people like Tata and Birla. We are losing even then. After losing in these big groups, I also setup website called http://shareactivism.com/. But, I couldn't dare to put any content as I am not courageous person. I am feeling little bit tensed when I am writing this to you. Actually, I wanted to connect to you long time back. I got chance to connect at least this way. I can do some research work free of cost if given opportunity. My number is 98403 07892 [email protected]

Sourabh Jain

2 months ago

Thank you for giving voice to Mr. Kothari's efforts. I continue to be a proud subscriber to MF

Senthilkumar Subramanian

2 months ago

Dear money life , You are the only one who will stand with retail investors try to bring limelight as much and bring the scandalous prompters in front of the law . Kudos to MR kothari

Veeraiah Bandlamudi

2 months ago

The Exchange has sought clarification from the Company with respect to news item captioned- Did Directors of Kesoram Industries Indulge in Insider Trading and Short-change Minority Shareholders?In this regard, Exchange has advised the Company to provide clarification/confirmation on the news item in detail including the following: a) Whether such event/negotiations/article stated in published news were taking place? If so, you are advised to provide the said information along with the sequence of events in chronological order and the material impact of this article on the Company. b) Whether company is aware of any information that has not been announced to the Exchanges under regulation 30 of Listing Regulations. The response from the Company is awaited

rihanahmad

2 months ago

There is something wrong with the Birlas who lead this company . Infamous and corrupt. Fleecing poor minority shareholders who r waiting for demerger . My Tx to Mr Kothari .

ramchandran vishwanathan

2 months ago

Regulator needs to ACT
Excellent investigation by ML as usual . Kudos to Mr.Kothari for being an alert investor

REPLY

Veeraiah Bandlamudi

In Reply to ramchandran vishwanathan 2 months ago

Who is ML ?

Vaibhav Pandey

In Reply to Veeraiah Bandlamudi 2 months ago

moneylife

Ashok M Shah

2 months ago

Its rights way to track your investment and take action accordingly.
Sebi is institution which creats laws and take back laws.
I believe He must have sent complaints to sebi but very slow or No action by them.
All reports are submitted to registrar of firms but they do not check motivational action even though they know all details.

REPLY

Veeraiah Bandlamudi

In Reply to Ashok M Shah 2 months ago

That is the companies are doing whatever they like beyond law.

Veeraiah Bandlamudi

2 months ago

Is it possible to share the mobile number of Mr.Janardan Kothari

Heera Gold investors panic over late payments and lack of answers about delays
Investors of Heera Islamic Business Group, better known as Heera Gold, are in a panic over payment delays and rumours about financial difficulties faced by the group, which has amassed vast sums of money by specifically targeting the Muslim community by invoking the name of “Allah” in its sales pitch. The trigger for people gathering to protest at Heera Gold’s plush offices in Bengaluru, Hyderabad and other cities is the decision to 'share profit' once in three months instead of every month. But that is not the only issue.
 
Videos sent to us show that officials at Heera Gold's corporate office at Hyderabad refused to meet people and had locked the office from outside while staying inside. The controversial group is under investigation by the Enforcement Department and the Serious Frauds Office of India (SFIO) for several years, but the community continued to be lured by the high monthly returns offered by its Ponzi-like business. 
 
 
Interestingly, the group is headed by Dr Aalima Shaikh Nowhera (Nowhera Shaik), Chief Executive of Heera Group, who investors say is no longer in India. Typical of Ponzi operations that are in trouble, she has released...
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COMMENTS

Sajid Syed

5 days ago

Salaam to everyone who is reading, now my question is how can we come out of this means how we will get our investment Back what is the solution and whom do we have to right and speak so that our money should not be big time gone.

Syed Mubashir

2 weeks ago

Salam Every body here.
Alhamdulillah by the grace of almighty allah swt. i have received my benefits on 06-09-2018 from Heera Foodex. i am very much happy and thanks allah for the end of all the bad rumours circling around the investors.. more over i have already chk with some of my friends and reletives and they didnt receive i am the lucky one to have it in 1st week of this month and hope all the investors will get their benefits by the end of this month. the only query in my mind is i have invested 4 lacs in april and waiting for may,june july as they said 3 months but i receive 22788 i just inform one of my relative to go and check about this amount......

REPLY

Amjad Khan

In Reply to Syed Mubashir 2 weeks ago

As salaamu Alaikum...its a miracle brother...because on one has received yet. It would be helpful if you could share some proof of payment...still question in mind that you might be writing on behalf of Heera ...Jazakallah..

Cropped Bank statement would be helful and will be a source of peace for other investors.

mi so

3 weeks ago

This is nothing but a repeat of the Jayalitha and her secretary story. It remains to be seen if Nowhera will be murdered by her own secretary. Molly has been hired by the politicians to funnel out all of the money from Heera Gold into their hands ! Do an investigation on Molly and you will find out all the truth you need to about Heera Gold.

mi so

3 weeks ago

My 100% suspicion is that Nowhere Shaikh is held under house arrest or kidnapped by her own secretary Molly who has a very suspicious background. Molly used to work in the US in virginia. She left her job and took up a Nanny job at Nowhere Shaikh's house to take care of the former's adopted child. Now who in their right mind would leave the US to work as a Nanny in India. Not only this, she won Nowhere Shaikh's trust to such an extent that Molly had her husband and son managing the call center for Heera Gold. That call center has vanished. Then Molly started taking the front seat in all the business decisions and I have been told by a person who was doing a gold deal with Heera Gold, that the deal did not go through because Molly wanted a higher commission !!!!! Can you believe that a woman who is working at the level of Nanny can run a call center business and negotiate gold deals. Slowly, as she took hold of all of Nowhera's cell phones and email access and nobody was able to reach Nowhere. Now I do not know if Nowhere has been murdered. Molly started transferring all bank accounts to Kerala, because she is from Kerala and can have a good hold on the bankers. Every month investors were given new bank accounts because Molly was changing banks left and right. Now I hear rumors that the money has already been transferred out of the country. It will not be long because Molly vanishes, either leaving Nowhere to reap for her sins. I have personally talked to Molly and found her to be a psysopath liar.

Noormohamed Kazi

2 months ago

This group united all. Think?? Real time to support. No benefits can go if its in your destiny. Dont be a prey to the medias. Be united. Rizk is in Allaahs hand only.

REPLY

sajid shaikh

In Reply to Noormohamed Kazi 1 week ago

On any other day I would have agreed with you 100%. But at this time with Heera group behaving like fraudsters and ponzi owners, your words are hurting. Sorry about that. Allah please prove me wrong in my thoughts.

But whatever I have observed and read in the past few months( including conversations with heera group people Molly and others), I have a strong feeling that people have lost their money

shafi qureshi

In Reply to Noormohamed Kazi 2 months ago

Assalam walaikum.
You are absolutely right my brother, this group has United all the people. We should stay United otherwise peoples are mastered their skills in divide and rule policy. After all rizk is in Allah's hand.

SUBHASH CHATTERJEE

2 months ago

Hope the investors get their money back. Ala,though time and again people have been cheated still the lure of high returns lead people to invest in such schemes. It is always proper to first investigate about the company and then invest

Shaikh Farukh

3 months ago

Basically Heera Gold is Ponzi Company. The company management has collected crores of Rupees by making fool to the people. Even the company has grossly broken the law of land as under:-
1. As Pvt Ltd company cannot accept deposits from peoples, still company accepted deposits.
2. The company was paying per month 3% fixed return on investment and that too without TDS.
3. In ROC filing company has never shown correct deposits figures and figures of turnover.

Huzefa Kazi

3 months ago

Mrs Dalal, I also call up hyd office call center and they did receive my call. They say that there are banking transaction limits set by banks after Nirav Modi episode, and there are issues related to GST calculation every month. Hence to reduce number of transactions, they have decided to change the terms & conditions and distribute profits every quarter instead of every month. Can you confirm if this is true and there are any transaction limit set by banks for transactions every day/month.

REPLY

Veeresh Malik

In Reply to Huzefa Kazi 2 months ago

Why not call up or write to Reserve Bank of India or to the bankers in question? Answer is simple - if you are doing legit business, then there is no limit to the number of transactions, nor is filing GST a problem. Good luck with your savings.

Qadeer Ahmed

3 months ago

Government of India should investigate this case with CBI so that every thing will be out and can safe innocent people...

Shankar g

3 months ago

Mintvest.......a 'smart investement' company luring gullible senior citizens/Public in advertising enmasse offering18% rate,montly. ON speaking to them, how they could give this much, it is being told, they offer Bridge loans /Under write loans of Banks, by lending the Banks and the companies who are offered loans. Lot of door to door canvassing is undergoing mainly targetting seniors , in Chennai..Needs probing

Mohd.Tahir Sayed

3 months ago

It will be tragic if the hard earned money of the common people is lost on such Ponzi schemes. Thank you Team MoneyLife for educating us about such frauds which occur in regular intervals.

Wealth managers cannot survive by delivering standardised experiences to clients: Report
Many wealth managers struggle to maintain their top-line margins despite strong growth in personal financial wealth and assets under management. But they can help reverse this trend-and strengthen their competitive position-by using advanced analytics to better address clients' individual needs and by adopting smart revenue practices to generate new pools of opportunity, says a study report.
 
The report, 'Global Wealth 2018: Seizing the Analytics Advantage' prepared by The Boston Consulting Group (BCG), highlights the need for delivering highly personalised service to clients. "Delivering standardized experiences to clients will no longer suffice," says Brent Beardsley, a BCG senior partner, wealth management expert, and co-author of the report, adding, "Wealth managers have begun to invest in personalisation, but many still struggle to effectively combine an enhanced client experience with the underlying management of data, processes, organization, skills, governance, and behavioural change. Firms that do not take the necessary steps in these areas run a high risk of being left behind."
 
 
BCG feels firms that deliver smart, individualized...
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