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Share price rigging is rampant during bull runs. To see how it happens, let’s check the modus operandi.

Share price rigging is rampant during bull runs. To see how it happens, let’s check the modus operandi.

Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Business Ethics CASE 2 (20 Marks) Share price rigging is rampant during bull runs. To see how it happens, let’s check the modus operandi. The main format which evolved during Harshad Mehta’s time, involves three participants – promoters, operator and a broker syndicate. There are ancillary participants like fake bill-sellers, and also perhaps unscrupulous auditors and officials. The promoter first finds an operator or vice versa. The promoter should be interested in bumping up the share price, the motivation for which could vary from the basic – offloading his stake at a high price to gullible retail investors – to the more advanced – which comprises complex needs like getting better validation for a GDR issue or in an M & A. it works like this: the promoters commit to the operator not to sell the market while the operation is on. He gives about 10% of his stake to the operator of companies affiliated to the brokrs’ syndicate. The syndicate normally comprises 6-10 brokers, often dispersed in different cities so as not to arouse suspicion of SEBI or the stock exchange. Their role is to do circular trading which works like this: say broker A sells to B at Rs. 4.5; will sell to C at Rs. 4.65 and so on. The trades are designed to generate the impression of large liquidity. After taking prices to certain level, ‘news flow’ is created. The news is typically about large orders and capacity expansion. These days it is often about an acquisition or restructuring. Also, financial results need to show improvement. This is done by buying revenue. There are agents who sell fake bills at a certain commission, which could be between 0.5% and 10%. ET has learnt this market tends to boom at the same time as share markets. After the price reaches the target, the syndicate exits. The gains are split between the promoter, operator and syndicate members. In this artificially created bull run, there is a new element: people trying to convert black money to white. Answer the following question. Q1. Give an overview of the case. Q2. Discuss the ethical issues in this case Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224

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What remedial measures do you suggest in the above case

What remedial measures do you suggest in the above case

Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Business Ethics CASE STUDY (20 Marks) Share price rigging is rampant during bull runs. To see how it happens, let’s check the modus operandi. The main format which evolved during Harshad Mehta’s time, involves three participants – promoters, operator and a broker syndicate. There are ancillary participants like fake billsellers, and also perhaps unscrupulous auditors and officials. The promoter first finds an operator or vice versa. The promoter should be interested in bumping up the share price, the motivation for which could vary from the basic – offloading his stake at a high price to gullible retail investors – to the more advanced – which comprises complex needs like getting better validation for a GDR issue or in an M & A. it works like this: the promoters commit to the operator not to sell the market while the operation is on. He gives about 10% of his stake to the operator of companies affiliated to the brokrs’ syndicate. The syndicate normally comprises 610 brokers, often dispersed in different cities so as not to arouse suspicion of SEBI or the stock exchange. Their role is to do circular trading which works like this: say broker A sells to B at Rs. 4.5; will sell to C at Rs. 4.65 and so on. The trades are designed to generate the impression of large liquidity. After taking prices to certain level, ‘news flow’ is created. The news is typically about large orders and capacity expansion. These days it is often about an acquisition or restructuring. Also, financial results need to show improvement. This is done by buying revenue. There are agents who sell fake bills at a certain commission, which could be between 0.5% and 10%. ET has learnt this market tends to boom at the same time as share markets. After the price reaches the target, the syndicate exits. The gains are split between the promoter, operator and syndicate members. In this artificially created Bull Run, there is a new element: people trying to convert black money to white. Answer the following question. Q1. Discuss the unethical issues in this case. Q2. What remedial measures do you suggest in the above case? Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224

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How Asian Betting Syndicate Works?

How Asian Betting Syndicate Works?

How Asian Betting Syndicate Works? The Asian betting syndicates have far-reaching influence. Although the majority of their control is centered in East, they encompass fingers stretch as far as the Africa, the U.K. and even the U.S.A. Positively the power they have, has had an outcome on sporting events all over the world, creating outcomes and match-ups that were in no way meant to be. In 1997 the illumination goes out throughout an imperative soccer game. As the mass groaned, an Asian syndicate celebrated as huge expenditure. In the case of a derelict game, most soccer games let the score stand “as is.” This permissible the Asian syndicate to draw the plug when their team pulled in front. What had happened is that a safety guard had been bribed by the association to cut the lights by remote control when advised by his contact. In 2010, a Singapore syndicated was blamed for a fantastic outcome to an Italian soccer game. In the last quarter, the winning team started acting bizarre, to the effect, that a doctor was called to see if they were unwell they were not; they were just chuck the game as instructed by their syndicate boss. More newly, another Asian syndicate claimed to have fixed the FIFA world cup qualifiers by controlling an entire African soccer team. By calculating this team, the syndicate was allegedly able to precede the teams they wanted to the final rounds. One of the supreme challenges to the Asian gambling industry is the betting syndicates. They are rampant in the East and have been accused of influencing the outcome of sporting events in Asia, UK and even the Africa. Betting syndicates subsist in almost every country in the world and are usually unlawful because of the authority they hold. In Asia, as the dollars existing are so much higher, they are mainly challenging. For more information please Top Soccer Tipster. Kind of Betting Syndicates A betting syndicate is a group of gamblers who pool their money mutually in order to amplify their odds of winning. The syndicate takes its members’ money which make the bet’s usually on generous events, but also on odd things such as politics plus weather. When the betting syndicate succeeds the bet, they pay out based on the fraction of money each gambler put in, with ever increasing online portals like M88 – betting syndicates are on the increase. Email: admin@verifiedsoccertips.com • Best Soccer Betting Tips For Today • Guide Lines for Accurate Soccer Tips • Know Asian Betting Syndicates Truth • Gamble with Mix Parley Soccer Prediction • What is Mix Parley Prediction?

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