K.Haputantri wrote:Alchemist & Red, I have no reason to disagree with what you said about human nature of greed. Yes, the whole market economy is driven by greed for profits, but there are laws to obey which separates the human beings from all other beings.
Where laws fail, regulations are enforced by respective authorities. Where regulations are not effective, custioms fill-in the gaps, as a temporary measure and later on, it may be regularised by laws.
Moral and Religious principles are in the background of all laws and regulations. Hence, what-ever loop-hole left behind by laws need to be taken care of by moral & religious principles.
There is nothing wrong with critically examining an event even after 10 years, because those who are new should know the truth and offenders should be taken care of even belatedly irrespective of their status. Remember, Criminal cases have no time bar.
I see similarities between a Pump & Dump exercises and the EXPO IPO issue. Here, the share offer price (which I think not a fair-price) was justified by IPO related advertisements, promotional material, and in getting involved "reputed" companies like JK to instill reliability. Here, the "Fair price" was calculated using conventional means used by accountants all other past events ignored. Even though pre-ipo private placement price was Rs:6.00 per share, which would have had a tremendous influance on the post IPO price, all the pundiths ignored it when recomending the "Fair Price." In fact, the prospectus should have highlighted this price sensitive information under "Risks" also but there was no such statement except a record on the pre-ipo issues separately. This is a delibarate action by the company and the promoters.
Hence, here is a clear case of Pumping the share price at the IPO exercise intending to Dump them on gullible investors, who, of course, according to law, are expected to exercise due deliance (A concept alient to many retailers in this country).
I know one would say that no one forced any one to buy the share (offer & acceptance theory) but the market sentiments at that time was so ir-resistible and many parted with their hard earned money owing to Greed.
If greed is sin, lurring innocent to part with their money using the greed is a sever sin. The regulator has an obligation to look at this Pump & Dump case even belatedly. It has been a very usefull discussion. Thank all members who contributed very professionally.
Thank you Hapu. you are a ethically & morally righteous man. respect.
However, sorry i have to respectfully disagree almost entirely on many of your assertions on this thread. legally, ethically or even morally, your arguments violate basic principles of natural justice, and are filled with bias and prejudice.
your basic arguments are
1. Prospectus error - criminal
2. IPO price - not fair
3. "loophole" - no lock in period
4. IPO was an pump & dump
1. I have clearly demonstrated that the prospectus error must have had to be accidental. and was disclosed one week before IPO. you have not replied to that. so criminal charges should be dropped as it was not intentional.
2. IPO price - again, i have repeatedly told you that this is a biased & prejudiced view looked at only with hindsight. the private placement price, information, knowledge was well disseminated and there was an active grey market for many months between PP & IPO. there was no unjust enrichment of Expo at the expense of anyone. it only appears like that now when price is down. you have not replied whether today if Expo price is Rs 30, whether it would be fair for owners of Expo to feel that they were fleeced by retailers.
3. Loophole - no lock in period concept or anything like that existed at the time of the IPO. new lock in period laws came up after these 2011 IPO's as a result of a perception that arose after the fact. not legally, ethically or morally right to judge EXPO on this account. IPO subscribers would have known the implication of subscribing with the PP factor. The Expo Directors did not sell after the IPO.
4. IPO was a pump and dump - conspiracy theories only come with bias & prejudice. there was an offer & acceptance. subsequently, the expo owners they did dump shares in the market.
Yes, i agree with you that in your own words, that it was an irresistable time. there were gullible people. greed played a great role. the lure was intense. since you mentioned religious laws and the role they have to play, it is apt to remember Lord Buddha and what he had to say on Greed, Attachment, Craving, Delusion, as ironically, they all seemed to have played their part in this whole expo drama.
Kindly please take in good spirit.