Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
Related Party Transactions Allegation Made by A Whistleblower against Asian Paints
One newspaper has reported that a whistleblower has reported related party transactions by Asian Paints with a company owned by their director Mr Ashwin Dani and his son.SEBI has asked more information from the whistleblower and is investigating this allegation.My views on the issue are as under :
1) We have to see if there is substance in the allegation,whether the transactions are within the legal framework,reported to the Board and SEBI.Few years back there was similar allegations against Infosis top management but SEBI found that there was no substance in that allegation.
2) We have to see what is the magnitude of such transaction in relation to the total turnover and profits of the company.
3) Stock markets reacts very violantly on the basis of such allegations. We have to base our actions on facts and not on emotions.
4) We have to see what is company"s clarification to SEBI on this issue.
5) I am certain that this allegation wont have any impact on company's profitability and growth but its clean image and corporate governance practices will take a hit.
6) I have studied the allegations and I find that even the most beginners in business wont do such things as alleged, leave alone a company like Asian Paints with 70 years track record of clean management doing such things .....but I will go with the facts as they come out.
Smart_trade
One newspaper has reported that a whistleblower has reported related party transactions by Asian Paints with a company owned by their director Mr Ashwin Dani and his son.SEBI has asked more information from the whistleblower and is investigating this allegation.My views on the issue are as under :
1) We have to see if there is substance in the allegation,whether the transactions are within the legal framework,reported to the Board and SEBI.Few years back there was similar allegations against Infosis top management but SEBI found that there was no substance in that allegation.
2) We have to see what is the magnitude of such transaction in relation to the total turnover and profits of the company.
3) Stock markets reacts very violantly on the basis of such allegations. We have to base our actions on facts and not on emotions.
4) We have to see what is company"s clarification to SEBI on this issue.
5) I am certain that this allegation wont have any impact on company's profitability and growth but its clean image and corporate governance practices will take a hit.
6) I have studied the allegations and I find that even the most beginners in business wont do such things as alleged, leave alone a company like Asian Paints with 70 years track record of clean management doing such things .....but I will go with the facts as they come out.
Smart_trade
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