Meanwhile, here in India, the securities market regulator, Securities and Exchange Board of India, has finished preliminary investigations into ICICI Bank's ludicrous allegations of its stock being hammered down. I had written about the witch-hunt against sellers (short or tall!) on 29 October.
Sebi has found nothing unusual in the trading in ICICI Bank. I give Sebi's full press release of 20 Nov '08 below. All this leaves an egg on ICICI Bank's face. The other cry baby, Unitech and their promoters Chandras, also better learn a valuable lesson and that is to stop crying when the going is tough particularly when you were never humble when the going was terrific.
Sebi's press release:
Trading in the shares of ICICI Bank Ltd.· In the backdrop of a global crisis in the financial sector and amidst liquidity fears, the share prices of several leading financial services companies across markets suffered a sharp decline. Rumours of financial trouble have caused a run on the banks in some overseas jurisdictions. The main spillovers have occurred in financial markets, reflecting the relative integration of such markets in the global financial system. In India, since January 2008 there has been decline in shares prices across sectors.
· ICICI Bank had vide letter dated September 17, 2008 made a complaint to SEBI alleging that “a malicious rumour is being spread to the effect that some of the top management have been selling ICICI Bank shares for the last few days”. The price of the shares of ICICI witnessed a fall of 12.5% from Rs. 640 on
· ICICI Bank, on September 16, 2008 disclosed to the public through a press release about ICICI Bank UK PLC exposure to Lehman Brothers i.e. “ICICI Bank UK PLC is holding investment of Euro 57 million ($80 million) in senior bonds of Lehman Brothers Inc. ICICI Bank UK PLC already holds a provision of about US$ 12 million against investment in these bonds. Considering a 50% recovery estimate, the additional provision required would be about US$ 28 million”. On
· The shareholding pattern of ICICI Bank for the quarter ended on
· It is seen that the prices of ICICI Bank fell by 49.52% from Rs.720.45 on
Trading pattern of the shares of ICICI bank was analyzed for the period
- The client category-wise breakup of turnover in the shares of ICICI Bank in the cash market shows that FIIs accounted for 23.57% and 18.61% of the value of shares sold and bought respectively whereas rest of the investors accounted for 76.5% and 81.4% of the value of shares sold and bought respectively.
- Top 20 investors in ICICI Bank both on net buy and sell basis in the cash market shows that majority of them were FIIs (Net Buy: FIIs-14, MF-4, DII-1, Others-1) (Net Sell – FIIs -17, MF – 2, Others-1)
- None of the major seller were observed to be placing orders successively at lower price
- There was no pattern observed regarding placement of successive orders at lower price by sellers to hammer down the price.
- There was no pattern observed of booking intraday profits by major clients or brokers during this period.
By and large, the trading patterns are consistent with the shareholding pattern of ICICI with predominant holdings by FIIs, the general buying and selling behaviour by FIIs and the broad movements of the market during this period. While SEBI continues its surveillance of the stock exchange trading in various securities, SEBI did not find evidence of manipulative trading in the ICICI Bank shares during the period referred to above.