Broking Frauds - Sharekhan & Others fined for Front-Running

#1
Just a day after the news of Sharekhan being taken over by Geojit came out, here is another alarming news.

Sebi slams Rs 14 crore fine on Sharekhan, others over front-running activities

http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

Alarming, yes, because a) I have an account with Sharekhan and am paying them 6000 per year for using TradeTiger, b) Sharekhan is a big respectable name, c) Obviously, somewhere it will hurt the small users.

I am surprised that SEBI sees no criminal activity here. Shouldn't such cases be taken to the police directly ??

Please use this thread to post your thoughts on this and report other broking frauds.

Here's the full news

Sebi slams Rs 14 crore fine on Sharekhan, others over front-running activities
By ET Bureau | 31 Jul, 2015, 09.10PM ISTPost a Comment


MUMBAI: The Securities and Exchange Board of India has fined broking firm Sharekhan and some individuals for allegedly doing front-running activities. The regulator has impounded the unlawful gains made by Sharekhan and 15 entities. The total imposed is Rs 14.7 crore.

The regulator said its investigation for the period March 1,2009 to March 31,2011 revealed that some clients of Sharekhan were front-running the orders of the Sterling group and the subsequent orders placed by the front-runners matched almost completely with the orders placed by the Sterling Group.

"The front-runners carried out their front-running activity predominantly through the stock broker, Sharekhan and their accounts at Sharekhan were handled by Madhu Chanda, the branch/ relationship manager," Sebi said.

Sebi's investigations also revealed that the trades of Sharekhan, Mr Anandilal Chanda (who is the husband of Madhu Chanda and had allegedly indulged in front-running through his account,his HUF's account and that of the proprietary account of Sharekhan) and his HUF were ahead of trades of the clients of Sharekhan i.e the front-runners.
http://economictimes.indiatimes.com...activities/articleshow/48299712.cms?prtpage=1
 

amitrandive

Well-Known Member
#2
Just a day after the news of Sharekhan being taken over by Geojit came out, here is another alarming news.

Sebi slams Rs 14 crore fine on Sharekhan, others over front-running activities

http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

Alarming, yes, because a) I have an account with Sharekhan and am paying them 6000 per year for using TradeTiger, b) Sharekhan is a big respectable name, c) Obviously, somewhere it will hurt the small users.

I am surprised that SEBI sees no criminal activity here. Shouldn't such cases be taken to the police directly ??

Please use this thread to post your thoughts on this and report other broking frauds.

Here's the full news
And many people in the Indian Markets still believe that manipulation and front running does not happen in Indian Markets .

Many of the brokers provide info about the stop losses of traders/investors to HFT and Algo firms on a regular basis.
 

ram2010

Well-Known Member
#3
And many people in the Indian Markets still believe that manipulation and front running does not happen in Indian Markets .

Many of the brokers provide info about the stop losses of traders/investors to HFT and Algo firms on a regular basis.

"many people still believe",

biggest joke of year 2015.


All Indians knew that, india is corrupt from top to bottom.:clap:
 
#4
Since the manipulations do happen, and I'm sure they happen in the other markets too, I think that we should start a petition to make it a criminal offence.

A penalty of some money won't hurt these big players, but a criminal case would.
 

amitrandive

Well-Known Member
#5
Since the manipulations do happen, and I'm sure they happen in the other markets too, I think that we should start a petition to make it a criminal offence.

A penalty of some money won't hurt these big players, but a criminal case would.
Of course manipulation is present in every global market including the Forex and Commodity markets .

Money corrupts ,they say.
So BIG MONEY corrupts BIG.


Check these links

http://www.paulcraigroberts.org/2014/12/17/financial-market-manipulation-new-trend-can-continue/
http://www.globalresearch.ca/financ...ns-become-more-extreme-more-desperate/5367860

Again most people believe Forex and Commodity markets cannot be manipulated

Some links for Forex market manipulation

http://www.bloombergview.com/articl...ated-foreign-exchange-in-ways-you-can-t-teach
http://www.cnbc.com/2014/03/11/forex-manipulation-how-it-worked.html

Some links for Commodity market manipulation

http://www.forbes.com/sites/maggiem...amed-in-commodity-manipulation-investigation/
http://www.bloomberg.com/news/artic...marks-seen-open-to-manipulation-law-firm-says
http://money.cnn.com/2014/11/20/investing/goldman-commodity-manipulation-wall-street/

And last but not the least

http://www.zerohedge.com/news/2014-05-14/wall-street-has-always-been-corrupt-or-about-be-corrupted

Those who still don't believe any of this , its time to wake up.
Or close eyes and go to sleep again assuming all this is conspiracy theory .


 

DSM

Well-Known Member
#6
TP,

Sadly, this is just one more incident, that show how our moral fiber has been eroded. Starting at the top, right to the bottom, corruption is the norm, barring a few exceptions.... Just an example as I was going out of our society compound today morning, saw BMC contractors repairing potholes that were fixed about a month back.... BMC has spent 2,000 CRORES for repairs of the potholes this year, but are our roads any better? Forget better, safe to drive? My salute to the few honest and brave people who fight the system.... they are true heros. Others have glit, polish and shine..... but who have self interest and agenda before the people or the nation who they should be serving.....

Just my views.....


I am surprised that SEBI sees no criminal activity here. Shouldn't such cases be taken to the police directly ??

Please use this thread to post your thoughts on this and report other broking frauds.
 

Rish

Well-Known Member
#7
Of course manipulation is present in every global market including the Forex and Commodity markets .

Money corrupts ,they say.
So BIG MONEY corrupts BIG.


Check these links

http://www.paulcraigroberts.org/2014/12/17/financial-market-manipulation-new-trend-can-continue/
http://www.globalresearch.ca/financ...ns-become-more-extreme-more-desperate/5367860

Again most people believe Forex and Commodity markets cannot be manipulated

Some links for Forex market manipulation

http://www.bloombergview.com/articl...ated-foreign-exchange-in-ways-you-can-t-teach
http://www.cnbc.com/2014/03/11/forex-manipulation-how-it-worked.html

Some links for Commodity market manipulation

http://www.forbes.com/sites/maggiem...amed-in-commodity-manipulation-investigation/
http://www.bloomberg.com/news/artic...marks-seen-open-to-manipulation-law-firm-says
http://money.cnn.com/2014/11/20/investing/goldman-commodity-manipulation-wall-street/

And last but not the least

http://www.zerohedge.com/news/2014-05-14/wall-street-has-always-been-corrupt-or-about-be-corrupted

Those who still don't believe any of this , its time to wake up.
Or close eyes and go to sleep again assuming all this is conspiracy theory .


Almost so many stocks are manipulated....

List of stocks under manipulation next week...based on speculative information....(not a trading call or any recommendation).

Ricoh India / JK Tyre just two i have mentioned....list continues....

Last month Force Motor.....

Pondy Oxide purely price rigging...

Caplin Point purely price rigging....so many..................

Manipulation and price rigging is part of every market....no body can control including SEBI.....

We should pet on these stocks purely based on speculation and rigging ...no technical / no fundamental...
 

NJ23

Well-Known Member
#8
Since the manipulations do happen, and I'm sure they happen in the other markets too, I think that we should start a petition to make it a criminal offence.

A penalty of some money won't hurt these big players, but a criminal case would.
You're right about the money part. JPM paid around 30 billion to settle pending lawsuits. They'd just add it up as a cost of doing business. But, I doubt locking them up in jails would serve any purpose. Locking them up might put them out of business and might scare others but this, I think, is a question of mentality. Ethics can't be taught, it has to be there in the character of leaders and the business. They would keep coming back in different forms.
 

ashu1234

Well-Known Member
#9
Of course manipulation is present in every global market including the Forex and Commodity markets .

Money corrupts ,they say.
So BIG MONEY corrupts BIG.


Check these links

http://www.paulcraigroberts.org/2014/12/17/financial-market-manipulation-new-trend-can-continue/
http://www.globalresearch.ca/financ...ns-become-more-extreme-more-desperate/5367860

Again most people believe Forex and Commodity markets cannot be manipulated

Some links for Forex market manipulation

http://www.bloombergview.com/articl...ated-foreign-exchange-in-ways-you-can-t-teach
http://www.cnbc.com/2014/03/11/forex-manipulation-how-it-worked.html

Some links for Commodity market manipulation

http://www.forbes.com/sites/maggiem...amed-in-commodity-manipulation-investigation/
http://www.bloomberg.com/news/artic...marks-seen-open-to-manipulation-law-firm-says
http://money.cnn.com/2014/11/20/investing/goldman-commodity-manipulation-wall-street/

And last but not the least

http://www.zerohedge.com/news/2014-05-14/wall-street-has-always-been-corrupt-or-about-be-corrupted

Those who still don't believe any of this , its time to wake up.
Or close eyes and go to sleep again assuming all this is conspiracy theory .


While I do accept that manipulation do happen in most of the market at one point or another, and the trend is very visible in stocks, but about forex and commodities its a bit different story, specially those commodities which are truly international (i.e supply and demand is not restricted to one or two nations) and forex where movement could burn down a country's economy.
For example certain govt do intervene in the market to stabilize their currency but in long run nobody can manipulate forex and commodity market as dynamics and supply demand situation changes. I was reading the gold article where writer was concerned and making assumptions that china is amassing all the gold of the world, but if you see the market in the light of today's info which is available, even chinese have dumped their gold recently and the trend will continue and these so called dooms day writers or conspiracy theorists will find another story to support their point of view.
It will be foolish to go into details of every rally or decline as its not gonna help traders community, so yes what if scams happens and scripts are run, trade will continue no matter what. Its just our markets gossips which may or may not be true at some point.
 

amitrandive

Well-Known Member
#10
While I do accept that manipulation do happen in most of the market at one point or another, and the trend is very visible in stocks, but about forex and commodities its a bit different story, specially those commodities which are truly international (i.e supply and demand is not restricted to one or two nations) and forex where movement could burn down a country's economy.
For example certain govt do intervene in the market to stabilize their currency but in long run nobody can manipulate forex and commodity market as dynamics and supply demand situation changes. I was reading the gold article where writer was concerned and making assumptions that china is amassing all the gold of the world, but if you see the market in the light of today's info which is available, even chinese have dumped their gold recently and the trend will continue and these so called dooms day writers or conspiracy theorists will find another story to support their point of view.
It will be foolish to go into details of every rally or decline as its not gonna help traders community, so yes what if scams happens and scripts are run, trade will continue no matter what. Its just our markets gossips which may or may not be true at some point.
FYI

Forex market manipulation

https://en.wikipedia.org/wiki/Libor_scandal
http://www.cfr.org/united-kingdom/understanding-libor-scandal/p28729
http://www.ft.com/indepth/libor-scandal

Conspiracy theories ,gossips exists on papers , not in lawsuits ,penalties and out of court settlements

Like I said earlier , many people still believe this is a fair world.:D

It is a financial jungle out there and its about trillions of dollars.
 
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