Just to conclude this ,I have cross checked the share quantity of DSP Mutual funds over the last two years wrt 8k miles ,they have not sold off any shares.
It formed a higher percentage of their portfolio last year ,just because the share price value was high and now it forms a low percentage of their portfolio ,just because the share price value is less
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Note, as @anni23 pointed out, he was responding as to the sale of 8K Miles Media and not 8K Miles Software Services. These 25 lakh shares are fresh disposals over and above the 25.70 lakh shares said to have been âillegallyâ sold.
If DSP enters a falling market, its own sale will bring accelerate the fall in the NAV, so as well keep holding it, and as the AUM grows the holding makes an ever smaller contribution to the NAV (something the fund manager most cares about). Think I mentioned it earlier as well.
As for Sandeep Tandonâs increase from 6.01 to 6.84, it is highly likely that he has moved âArchana Sandeep Tandonâ holdings of 0.84% end of March 2018 to his account. I assume Archana Sandeep Tandon is a related party to Sandeep Tandon but controlled by him. This may have been done to realize some tax losses in that account to set off against some potential capital gains, thus reducing tax liability. Nett, one cannot read a lot into the increase in holdings.
We had this discussion earlier here. Separetely, Canara HSBC OBC, the other institutional holder was selling its shares in the JAS quarter.
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I have a few queries:
The BSE shows the mode as "Market ".
Also if the dealing is off-Market how would BSE know about it?
This is a system driven disclosure, provided by the RTA and displayed by BSE (as a mentioned in the footnote). I donât know why the mode is âMarketâ for all transactions. This was discussed in posts 920 and 925 above.
The system driven disclosure is based on this circular by SEBI
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More details:
a) Whether such event 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. b) The material impact of this article on the Company. c) Whether company are aware of any information that has not been announced to the Exchanges under Regulation 30 of Listing Regulations. If so, you are advised to provide the said information and the reasons for not disclosing the same to the Exchange earlier as required under Regulation 30 of the Listing Regulations.
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Sharing this clarification that 8KMIles Software has posted on BSE at 6.58pm today. It appears to reaffirm SVâs earlier clarifications. Positive aspect, as it claims, is that business is doing wellâŚif not great.
Forum members may dissect it suitably.
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Very interesting developments taking place in this company.
Management claiming that the company is undervalued but they themselves are not buying their own shares from Market. Dividends are not paid citing reasons for future acquisitions. 99% of the revenues are not audited by the Auditor.
Deloitte has made qualified opinion on the Consolidated Statement of the company.
Source: AR
Management told for a common audit of all subsidiaries in the AGM but nothing happened till date.
Forget the last 8% share selling as management claim it to be illegally sold , what was the reason for selling 6% stake in 1 year between March '17 to March '18 if the company has great future potential.
Source: @phreakv6 phreakonomics
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On this, the CEO indicated that there is a 6 month mortatorium from last day of sale and he is waiting for that to pass. Members with knowledge of regulations can comment.
It seems he is admitting to providing shares without declaring a pledge, as a collateral. He âborrowed funds for his private requirements from the brokerages depositing his shares as collateral security in March, said he found out only in early August about the illegal transferâ
It seems likely that he defaulted on the loans he borrowed against these shares. One theory by I think @phreakv6 is that this was an indirect way of selling his shares! That would be very smart 
For a moment imagine that your broker has just taken away shares worth Rs 125 crores (Rs 500 * 25.7 lakhs) from your a/c and you realize it a little late. When I imagine that my immediate reaction will be to plead a court order for a stay on any transfer of shares that are yet to be sold by the broker, and for the broker to keep them frozen till matters are resolved. I mean, first save what you can, then investigate!
Anyway the additional 25 lakh share sales may also need to be explained sometime.
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Doesnât above act of borrowing money by using his shares as collateralâŚwhich gets sold by the lender when price dropsâŚa subtle act of subterfuge by promoter? Isnât it in effect a sale of promoterâs stock in circuitous way without having to disclose it? Do our laws allow this?
It seems that there is a (logical) loopholeâŚthat allows an exploitable space between having to must disclose a) pledge, b) when make significant sale directly by promoter in on-market or off-market transactions and c) when using shares as collateral to borrow that get sold when prices drop but donât get disclosed right away as it happened in this case. Isnât it?
Related question is: why the two brokerages didnât disclose right away when they sold promoterâs shares? Easy answer isâŚ(1) to them it doesnât matter if the stock is promoterâs or whosoeverâŚas they are only invoking the covenants to realize the lent sum and (2) SEBI laws donât expressly require this disclosure.
I hope I make sense aboveđ. I am a novice in SEBI laws etc. Welcome comments.
Further the amount borrowed by SV and the amount realized by the lender by the triggerred sale of shares can be different. They neednât be same. How do they reconcile this in this highly contested situation when both are at loggerheads with each other?
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DSP provided a detailed explanation on 8k miles to my tweet
Eventhough not very useful,just thought I can share it
an-update-on-exposure-to-8k-miles-and-ashapura-intimates.pdf (118.7 KB)
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Hi Prasad,
Yes it is
It has not been tested as yet, but over the past decade the pledge rules have been subject to misuse via its various nuances - âpledgeâ, âlienâ or âencumbranceâ. They have been tightened and so any shade of a share pledge needs disclosure. But this one, which is to provide signed DP slips (much like a blank cheque), which SV says he did not do, is yet to be challenged and ruled upon.
In all (a), (b) and (c ), the transactions have to be disclosed. However in this case on (a) SV is arguing that there was no pledge, and the DP slip was forged - which is in contradiction with his admission in the TOI posted by @Funda_Buffett yesterday, (b) yes, but SV says he realized it late and had to keep it private to âinvestigateâ the matter and in the opinion of some, this has been missed by the Broker and the RTA. (c) there was a âsystem level disclosureâ that was missed out by many. The same system level disclosure also reveals that another 25 lakhs shares have been sold on Oct 1!!
I think it will help if a shareholder files a complaint with Scores.
The statement by Quantum Securities (on Bloomberg Quint) is that they acted within the law.
If there was a pledge and these shares were invoked as pledge then Quantum Securities will have to disclose it, as I have seen many Trustees / NBFCs do. However if the whole purpose to design a pledge that skirts disclosure norms (i.e. do not have an agreement, but an understanding that certain signed DP slips will be used as a pledge) then well somebody will have to test the rules with SEBI.
To the extent the disclosure needed to be made by the RTA it was made, thatâs how we ( @anni23 I think pointed it first) got to know about these sale. To the extent disclosure needs to be made by SV, he has provided some reasons. To the extent it needs to be made by the invoker of the pledgeâŚthe matter is open
In the case of a normal pledge agreement (for instance in my case) if a share sale is triggered by default, any amount realized by my loan provider in excess of the amount due will be returned. In this case too there could be such an agreement. Typically depending on the stock there is a margin of safety of 40%, 50%, 60% etc, so if the market price is Rs 100 you can draw down a maximum of say Rs 60 at 40% margin. If the stock price falls to say 90, then you need to provide additional stocks (say 11% of the same stock) to provide a 40% cover. If you fail to do so within some time (say a day), some of these stocks will get sold under the powers of attorney given.
I guess thatâs the case here as can been seen by charges flying around!
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https://corporate.cyrilamarchandblogs.com/2017/05/sebis-informal-guidance-continual-disclosures-prevention-insider-trading-regulations/
the person creating a charge/pledge/margin has to mention in the DI slip the purpose of transfer and inform the exchange.
What was intriguing was SV saying that the information on transfers went to a email which he was not accessing
"The confirmations of these transactions were coming to a different email address when I was staying in the U.S. This email was registered in the brokerage forms. " quote by SV.
So who gave this email.?There is also a email registered with CDSL/NSDL.They also send summary of transfers.
And now he files a police complaint in Chennai of a transaction which took place in Delhi.The whole purpose is to kill the investigation as Chennai police will take years to conclude this.Surely SEBI will pull him up for making his own investigation for 6 moths and delaying the disclosure. He has no authority to probe and his probe carries no legal validity.The charade has been enacted and he is trying to pull the wool over the investorsâ eyes.
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Is the circuit filter revised to 10% 
ya seriouslyâŚhow can a stock falling so hard have LC changed from 5-10%??? In theory should reduce to 2% or has group been changed with a different circuit??? This is final blow exchange is delivering to add fuel to fire on the condition of investors⌠
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There really should be no circuit
A market is not allowed to trade freely because of circuit
Many people I know bought this stock as it had halted the dropp last time due to circuit and temporary change of sentiments
Dhfl fell without circuit and itâs been alright as those who wanted to exit did so
With circuit you canât exit in a market where there might be other trades you want to do to recover
With circuit your money is locked until circuit is over
Look at dhanvarsha finvest compared to dhfl, if it had fallen 50pc on the day instead of 2pc every day people who wanted to exit could have exited and invested somewhere else
How will anyone be able to ever sell their holding on 8k when there are absolutely no buyers in this range
Constant circuit puts a doubt, if itâs one time chop then atleast you know the worst is over as far as valuations are concerned
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I agree with you. But think politically. If thereâs no circuit filter and market is kept open, regulators wonât be able to control it ! And no matter what ⌠even if it means killing a large part of retail investor ⌠regulators wonât hesitate doing that ! But they wonât give up their control on the market, no matter what !
Retail investors are crushed always. I still remember institutions selling Satyam just weeks before the fraud discovery ⌠when asked they said they started doubting the fundamentals ⌠I mean who are you kidding ?! 
People remember Lehman but not those millions who lost every penny of their lifetime savings !
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The market cap is now below 1 year consolidated profit. No indication from company on buying back shares, Is the cash on books real or not?
I bought into this stock at avg rs 500 because auditor was reputed and stock seemed cheap. I entered the stock because I believed the auditor quality. Sitting on huge loss.
I am kind of newbie - Some basic questions
- Is there not a moral obligation on the Auditor to raise the falling stock price with the management and ask why there is no buyback?
- Will regulator raise this with the management?
Will not trust any numbers now unless auditor owns the consolidated numbers too,
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