Who is rigging the prices of Government Owned and Controlled companies – MMTC and NMDC ? What is the Market watchdog, SEBI doing ? Does the SEBI want’s to be synonymous with the Police in Bollywood movies, arrive after all the damage has been done ? We present a complete analysis of price rigging in MMTC and NMDC and yet the Finance Ministry and SEBI are mere spectators 🙂 [Nothing New]
MMTC:
The Government of India holds 99.33% of the shares in MMTC according to BSE India. Two Mutual Funds hold 0.65%. 919 shareholders (106 Bodies Corporate, 808 individuals and 5 NRIs who hold 9 shares), hold 7,369 shares.
Lets take a look at the share price of MMTC over the past 12 months,
Dec-2006 – Rs 1,995
Aug-2007 – Rs 4,700
Sept-2007 – Rs 7,500
Oct-2007 – Rs 20,435
Nov-2007 – Rs 56,931
Dec-2007 – Rs 27,299
So going by the current trends, Government and Institutions are the unlikely candidates for manipulation. So the culprit is one/more of the 919 shareholders. Leaving the Corporate Bodies aside, we think it is a group of individuals amongst those 808. With such low floating stock, manipulation will be very very easy 🙂
NMDC:
In case of NMDC, the Government holds 98.38% while institutions hold 1.39%. This leaves with 0.23% of the stock in the hands of 942 shareholders who have rigged the price. Look at the share price history of NMDC over a year,
Dec-2006 – Rs 1,995
Aug-2007 – Rs 3,700
Sept-2007 – Rs 4,700
Oct-2007 – Rs 8,105
Nov-2007 – Rs 12,831
Dec-2007 – Rs 9,399
Clearly some folks with vested interests have manipulated these stocks. We recommend our readers to stay away from MMTC and NMDC.