Sat, 27th May 2017

Anirudh Sethi Report


Archives of “insider trading” Tag

A former Barclays director charged with leaking tips to plumber

A former Barclays director was arrested on Tuesday on charges of passing insider information on upcoming mergers to his friend, a plumber, who allegedly repaid him in part by doing up his bathroom.

Steven McClatchey, 58, was charged in a criminal complaint filed in Manhattan federal court with conspiracy, wire fraud and securities fraud after the plumber, Gary Pusey, pleaded guilty on Friday and agreed to co-operate with authorities. Mr Pusey also faced conspiracy, securities fraud and wire fraud charges and the Securities and Exchange Commission has also filed insider trading charges against the two men.

Government officials allege Mr McClatchey gave tips to Mr Pusey, 47, ahead of at least 10 separate transactions before they became public, including deals involving Petsmart, CVS Health and Duke Energy.

In exchange for the tips, which allegedly earned him $76,000 in trading profits, Mr Pusey made cash payments totalling thousands of dollars to Mr McClatchey by occasionally placing cash in a gym bag or handing over the cash directly in Mr McClatchey’s garage, it is alleged. He also allegedly provided a free refitting of Mr McClatchey’s bathroom at his home in Freeport, on the south shore of Long Island.

In a statement, the bank said: “Barclays wholly supports the Southern District of New York, the SEC and the FBI in their respective investigations, and has co-operated fully with them since learning about this incident involving a former employee. We have rigorous and extensive conduct and compliance training at Barclays which we underpin with a steadfast commitment to acting with integrity and respect. Barclays will take appropriate action when employees do not hold themselves to the conduct and control standards which are embedded in our culture.”

Beijing abandons large-scale share purchases

China’s government has decided to abandon attempts to boost the stock market through large-scale share purchases, and will instead intensify efforts to find and punish those suspected of “destabilising the market”, according to senior officials.

For two months, a “national team” of state-owned investment funds and institutions has collectively spent about $200bn trying to prop up a market that is still down 37 per cent since its mid-June peak.

China’s leaders feel they mishandled the stock market rescue efforts by allowing too much information to become public, according to senior regulatory officials speaking at a meeting late on Thursday — an account of which has been seen by the Financial Times.

Last week’s equities collapse, which prompted a rout in global markets, was partly blamed on authorities’ apparent decision to refrain from the share purchases they had been making since early July.

After standing on the sidelines for more than a week, the government resumed large-scale stock-buying in the last hour of trade on Thursday. This helped to lift the Shanghai benchmark index from a small loss to end the day up more than 5 per cent. The market rose by almost 5 per cent again on Friday.

Granules India-Insider Play In BlockDeals

CHOR BAZAARIInsider Trading in Indian Equities is a religion. And new ways are being found everyday to milk the system. Consider Hyderbad based Granules India-an entity with a Rs 2000 cr market. Ever since the Q4F15 results were declared, the stock has seen sporadic bouts of selling. It is known to all that 2 large investors with more than 10 per cent combined equity wish to Exit the stock.

The first block deals were done in May15 around Rs 100/share (FV Re 1). Around 2 crore shares are in play. However, the entire quantity was not matched at Rs 100 and the stock ultimately dropped to Rs 75. For the past 2 months a Calcutta investor has been trying to sell the stock on various TV channels with no success. Ultimately, Morgan Stanley has come out as the saviour. It picked 1.13 cror shares from Ridgeback the previous Monday at Rs 78 per share. And today, some more block deals have been concluded, these will probably give exit to Invesco which has still been left with roughly 50 lakh shares.
All that is good. However, on each occassion of the block deals, the stock spikes up 10 per cent intra-day and then falls back to the starting point of Rs 80 or so. After this for weeks at end huge quantities get traded around Rs 81/82 till another deal happens. The daily transactions seem circular and are meant to create a stable price at which more deals happen.
Could there be insider trading happening here? What if a core group in the know warehouse public float and Sell when the inevitable spike takes place on the day of Block Deals. Today, 51 lakh shares have been traded at an Average price of Rs 88 per share, against market price of Rs 85 and a intra day high of Rs 91. Do the math, are the sums lucrative enough to do the inside job or not? And then decide whether such price moves need to be investigated.

New insider trading norms to kick in from tomorrow

To tackle insider trading menace, a new set of norms will come into effect from tomorrow that provide for strict penal action for illicit transactions in shares of listed firms by promoters, key management personnel, their relatives and all connected persons.

The new norms, which would revamp nearly two-decade old regulations, would also ensure that genuine trades are not impacted.

Besides, greater clarity on concepts and definitions has been put in place along with a stronger legal and enforcement framework under the new set of norms called — Prohibition of Insider Trading Regulations, 2015.

The tightening of norms assumes significance in the wake of Securities and Exchange Board of India (Sebi) coming across cases of insider trading not just at small companies but at big corporates as well.

Sebi, in January, had notified the new regulations on insider trading.

Fiis Investment in Last 3 Months Rs 22000 Crore Plus.Sensex YTD is Down 41 points,Nifty is Just up 59 points !


Yes ,Manipulation +Insider Trading ……………………….At PEAK !

First Corporate will Mint Money then Insiders then Local (Funds owned by Corporate Houses )……………In Last FII will take Decision & Will Mint Money

Mid April ,Again Result season will start & Again Manipulation of Price + Insider Trading for 1 month or more will start.

We Don’t Believe in Fundamentals ,Economy ,Growth ,Results :All Manipulative in India

Untill & Unless Corporate +Insider Trading stops in India :Nobody can Mint Money.

Rs 1000 entry in Your Bank Account :Income Tax will ask u 1000 questions.Who is Checking…..Who is pouring so much of money in India & Who’s Money ??

But if u Refresh your memory and see  on 4th March :We told Honeymoon is over…………….Game over for Bulls

-Yes ,2nd Rate cut happened & see there after ……….WHAT HAPPENED ??

Only Follow Chart ,Only TRADE with levels ………Nothing else.

All Results are known to Insiders ,All DATA are leaked & Open positions are known to few people sitting in Mumbai 

-Don’t Watch Blue Channels :Don’t waste time & Money (If they are so Expert then they will not do job on TV ,They will trade & mint money )

-U are only looking at PRICE on screen :Behind activities ………….out of 100 Traders only 2-3 people knows 

-Have u seen any Fund Manager/Analyst on TV @ 9100-9200 level…………Sell it ??These Jokers/Idiots are saying we are in Bull Market every Decline u should Buy…….

-At Your Backyard……….u are having Money PRINTING PRESS ??

From 9191 to 8328 ………Fall of 860+ points !

Technically Yours/ASR TEAM/BARODA

Sebi to tighten insider trading norms

Market regulator Sebi on Friday said it has come across cases of insider trading at not just small companies, but at big corporates as well, and the norms would be tightened soon to curb this menace. Besides, the capital market watchdog would initiate prompt action in case of entities that violate listing norms. “We are revising our prevention of insider trading regulations because we have discovered cases… unfortunately the cases are not just from small companies but also from big ones,” Sebi chairman U.K. Sinha said. Emphasising that Sebi was “going to tighten the norms about insider trading regulations”, Sinha said, “I am sure insider trading as an offence is happening in India.” The revision in these norms would be substantially based on Sodhi committee, which had submitted its report to the Securities and Exchange Board of India (Sebi) in December last year. The high-level panel, chaired by former Chief Justice of Karnataka and Kerala High Courts, K Sodhi, had focused

Rajaratnam’s brother exculpate by jury

Rengan Rajaratnam, brother of the convicted co-founder of Galleon Group, the $8bn hedge fund, was on Tuesday acquitted of a charge that he conspired with him as part of a vast insider trading scheme.

The acquittal is the first loss by the US attorney’s office in Manhattan after an unprecedented run of 80 straight convictions of individuals for insider trading since Preet Bharara took over as US attorney in the summer of 2009.

After just a few hours of deliberations, a jury in New York found Mr Rajaratnam not guilty on one count of conspiracy to commit securities fraud. The judge overseeing the trial last week threw out two charges of securities fraud. Before the trial the government had eliminated other charges.

After the verdict Mr Rajaratnam hugged his three attorneys. Judge Naomi Buchwald noted that he would be out of court in time to watch Brazil play Germany in a semi-final World Cup game. Mr Rajaratnam was living in Brazil when prosecutors announced the criminal charges against him last year.

Defense Lawyers In The First Big Insider Trading Trial Of 2014 Tried To Ban The Word ‘Greed’

Think this would make a difference?

 Today, jury selection will begin in the insider trading case against Mathew Martoma, a former portfolio manager at embattled hedge fund SAC Capital. But before attorneys could argue before the jury, Martoma’s lawyers tried to set an interesting term – they wanted to ban the use of the word “greed” during the trial.

This request didn’t go over well, according to the NYT:

In a ruling on Monday, the judge presiding over the trial, Paul G. Gardephe, barred prosecutors from introducing evidence of Mr. Martoma’s fainting spell. But he decided to allow prosecutors to use the word “greed” during the trial, despite concerns raised by Mr. Strassberg that the word could be used as a way to “tap into the anger out there against Wall Street.”

Remember, Martoma fainted in his front yard when the FBI took him in.

Martoma is accused of passing inside information to Steve Cohen, the founder of SAC Capital, that made the firm $276 million. It’s the latest in a string of cases against SAC, which last year pleaded guilty to federal insider trading charges, returned outside investor money, and became a family office. Read More 

SEC charges Microsoft manager with insider trading

A senior Microsoft employee has been hit with insider trading charges by the US Securities and Exchange Commission.

The regulator said that Brian Jorgenson, a manager in Microsoft’s corporate finance and investments division, tipped off a friend ahead of big company announcements.

The friend, Sean Stokke, then allegedly traded on the information and they split the profits in shared brokerage accounts in hopes of saving enough money to create a hedge fund.

According to the SEC:

Abusing access to Microsoft’s confidential information and generating unlawful trading profits is not a wise or legal business model for starting a hedge fund.

The SEC alleges that the two made $393,125 in illicit profits from the scheme, which started in April 2012. It said that Mr Jorgenson leaked information about Microsoft’s investment in Barnes & Noble’s e-reader business and its quarterly earnings, among other events.

Microsoft did not immediately have a comment.


This is very common in India ,Everybody is doing !!