Quarterly Capitalists,
ADANI's FPO has exposed the DEEP ROT of the INDIAN STATE. It is a well-known and an established fact. Governance is an abused word. The focus of this article is on External Rating Agencies, the role of SWFs and Investment fund and MSCI model.
However, some background and perspective is required.
Ref: Fudging of books by listed companies
i. Report by the Securities and Exchange Board of India development research group (DRG) authored by D. Ajit, Sarat Malik and Vimal Kumar Verma
ii. 2006 paper by Jayati Sarkar, Subrata Sarkar and Kaustav Sen, based on a study of 500 Indian companies concludes that quality (integrity and knowledge of the business) of the board members is critical for governance.
iii. Numerous media reports on fudging of books, resignation of auditors.
The stock market is not about raising capital for economic growth! In corrupt countries the market functions like a private club with rampant price fixing, market manipulation, insider trading and conflict of interest. The “big” international fund managers are a core part of the manipulation business. Media owned by corrupt oligarchs and cronies ensure that the information asymmetry prevails and the corporate veil is not lifted.
INDIA’s vanishing listed companies
https://www.business-standard.com/article/markets/700-odd-listed-co...
https://www.business-standard.com/article/companies/cases-against-v...
Let us keep the systemically corrupt INDIAN issue aside for a moment and look at external factors that impact the market of all countries.
1. External Rating - Agencies
The 2007-08 CRISIS brought out several DEEP FLAWS of the ratings provided by Moody’s, S&P and FITCH. The rating end-to-end process was so flawed that BASEL woke up and recommended banks NOT to rely SOLELY on external rating.
They wanted to discourage the use but changed their mind later.
https://www.reuters.com/article/basel-banks-regulations-idUSL8N1290...
How the Basel Accord’s dependence on external institutions aggravated the 2008 financial crisis – a LSE publication
https://blogs.lse.ac.uk/europpblog/2020/02/24/how-the-basel-accords...
Regulatory action is necessary to ensure that the agencies operate in accord with levels of accountability and transparency matching the recommendations of the IOSCO Code. https://unctad.org/system/files/official-document/osgdp20081_en.pdf
RATINGS given to ADANI companies are incorrect as the rating does not reflect the RISKS of a COMPLEX, layered Corporate structure. The data available to the agencies is limited. This applies to ALL comple, layered corporate structures.
2. CORRUPTION & WEAK due diligence (political factors) of SWFs, Investment Funds
Norway’s gigantic sovereign wealth fund loses a record $164 billion, citing ‘very unusual’ year
https://www.pensionpolicyinternational.com/norways-gigantic-soverei...
Hong Kong-Hong Kong Wealth Fund Posts $26 Billion Record Loss in 2022
https://www.bloomberg.com/news/articles/2023-01-30/hong-kong-wealth...
Goldman Sachs Ensnarled in Vast 1MDB Fraud Scandal – Corrupt, Shameless Goldman sachs hasn’t settled - MALAYSIA PM
https://www.bloomberg.com/news/articles/2023-01-30/malaysia-pm-anwa...
QATAR funds are NOTORIOUS https://www.reuters.com/article/us-qatar-fund-kushner-insight-idUSK...
https://www.foxnews.com/world/trump-organization-ended-qatar-push-6...
QATAR FM quits https://www.reuters.com/world/middle-east/qatars-finance-minister-a...
KUWAIT https://www.bloomberg.com/news/articles/2021-06-20/how-a-600-billio...
UAE An Inside Look into the Murky World of the UAE’s Sovereign Wealth Funds
https://insidearabia.com/an-inside-look-into-the-murky-world-of-the...
3. MSCI
https://www.msci.com/our-solutions/factor-investing#:~:text=MSCI%20....
When the stock market regulation is weak (systemic corruption), the adanis of the world with the support of their GODFATHERS can change their ‘financial profile’ and gain entry into the index / influence the weight.
The eight factors groups it uses are: Value, Size, Momentum, Quality, Yield, Volatility, Growth and Liquidity.
MSCI needs significant improvement to their model.
Adani’s FPO SCAM is another DATA SOURCE for (a) money laundering and (b) Oligarchy-Cronyism-Kleptocracy model that Indians are suffering from.
Corrupt politicians, Family Offices, Law Firms, Accountants and other ‘fixers, make 'an economy grow' in a very murky business environment.
Panama & Paradise papers
https://www.forbes.com/sites/naazneenkarmali/2016/04/04/indias-rich...
https://indianexpress.com/article/india/india-news-india/panama-pap...
https://www.thequint.com/news/business/panama-leak-it-dept-chasing-...
https://www.bloombergquint.com/bq-blue-exclusive/adani-groups-growi...
https://www.icij.org/investigations/fincen-files/fincen-files-inves...
https://indianexpress.com/article/express-exclusive/fincen-files-in...
Stock market Regulator
https://www.sebi.gov.in/sebi_data/attachdocs/1411616289051.pdf
https://www.business-standard.com/article/pti-stories/sebi-bans-apm...
Adani embroiled in African corruption scandal via arms deal
https://www.michaelwest.com.au/revealed-adani-embroiled-in-african-...
Adani companies facing multiple financial crime, corruption probes
https://www.abc.net.au/news/2016-12-22/adani-companies-facing-multi...
GLOBAL Protest
https://www.adaniwatch.org/
https://www.facebook.com/groups/stopadanisupportnetwork/
https://www.stopadani.com/
Obstruction of Justice
https://indianexpress.com/article/india/adani-firm-trying-to-impede...
Notably, this money circulates within the group through a high-density of “related party transactions” or transactions between companies that are connected.
https://scroll.in/article/923201/from-2014-to-2019-how-the-adani-gr...
Glass Lewis flags risks from Adani 'unconscionable conduct
https://www.nasdaq.com/articles/adviser-glass-lewis-flags-risks-fro...
Money laundering & Tax Evasion
https://www.sebi.gov.in/sebi_data/attachdocs/1411616289051.pdf
https://offshoreleaks.icij.org/nodes/82028144
Destruction of Environment
https://caravanmagazine.in/reportage/coalgate-2-0
Ref:
What Adani’s Downfall Tells Us About India’s Crony Capitalism https://time.com/6251935/gautam-adani-group-india-hindenburg/
Dr. Soma Marla,Principal Scientist,ICAR,Delhi
https://countercurrents.org/2023/02/bursting-adani-bubble-exposes-n...
Modi’s Rockefeller’: Gautam Adani and the concentration of power in India
https://www.ft.com/content/474706d6-1243-4f1e-b365-891d4c5d528b
Annual Reports of the ADANI Group
ADANI Port: https://www.bseindia.com/bseplus/AnnualReport/532921/73447532921.pdf
ADANI Power: https://www.bseindia.com/stock-share-price/adani-power-ltd/adanipow...
ADANI Transmission: https://www.bseindia.com/stock-share-price/adani-transmission-ltd/a...
ADANI “Green” https://www.bseindia.com/stock-share-price/adani-green-energy-ltd/a...
ADANI “Total Gas” https://www.bseindia.com/bseplus/AnnualReport/542066/73449542066.pdf
ADANI Wilmar: https://www.bseindia.com/stock-share-price/adani-wilmar-ltd/awl/543...
Much of the above is covered in HINDENBURG RESEARCH REPORT
https://hindenburgresearch.com/adani/
The Polyster Prince:
https://www.goodreads.com/book/show/265513.The_Polyester_Prince
Former West Bengal Guv Gopalkrishna Gandhi calls Reliance Industries a 'parallel state'
(Known to 1.2 billion demonetised people)
https://www.financialexpress.com/archive/former-west-bengal-guv-gop...
Book Review: The Silent Coup: A History of India’s Deep State’
https://www.thehindu.com/books/books-reviews/the-silent-coup-a-hist...
As we have seen in the case of Mr Zuma in South Africa, winning elections does not mean that people are doing well. Look up the Misery Index and link it to winning elections. Is there a correlation? There is a causation factor between election funding, spending and winning elections.
In democracies, people choose the lesser evil on the day of election. In most cases, it is choice between the devil and the deep stinking polluted ‘sea’.
ADANI's FPO has exposed the DEEP ROT of the INDIAN STATE. It is a well-known and an established fact. Governance is an abused word. The focus of this article is on External Rating Agencies, the role of SWFs and Investment fund and MSCI model.
However, some background and perspective is required.
Ref: Fudging of books by listed companies
i. Report by the Securities and Exchange Board of India development research group (DRG) authored by D. Ajit, Sarat Malik and Vimal Kumar Verma
ii. 2006 paper by Jayati Sarkar, Subrata Sarkar and Kaustav Sen, based on a study of 500 Indian companies concludes that quality (integrity and knowledge of the business) of the board members is critical for governance.
iii. Numerous media reports on fudging of books, resignation of auditors.
The stock market is not about raising capital for economic growth! In corrupt countries the market functions like a private club with rampant price fixing, market manipulation, insider trading and conflict of interest. The “big” international fund managers are a core part of the manipulation business. Media owned by corrupt oligarchs and cronies ensure that the information asymmetry prevails and the corporate veil is not lifted.
INDIA’s vanishing listed companies
https://www.business-standard.com/article/markets/700-odd-listed-co...
https://www.business-standard.com/article/companies/cases-against-v...
Let us keep the systemically corrupt INDIAN issue aside for a moment and look at external factors that impact the market of all countries.
1. External Rating - Agencies
The 2007-08 CRISIS brought out several DEEP FLAWS of the ratings provided by Moody’s, S&P and FITCH. The rating end-to-end process was so flawed that BASEL woke up and recommended banks NOT to rely SOLELY on external rating.
They wanted to discourage the use but changed their mind later.
https://www.reuters.com/article/basel-banks-regulations-idUSL8N1290...
How the Basel Accord’s dependence on external institutions aggravated the 2008 financial crisis – a LSE publication
https://blogs.lse.ac.uk/europpblog/2020/02/24/how-the-basel-accords...
Regulatory action is necessary to ensure that the agencies operate in accord with levels of accountability and transparency matching the recommendations of the IOSCO Code. https://unctad.org/system/files/official-document/osgdp20081_en.pdf
RATINGS given to ADANI companies are incorrect as the rating does not reflect the RISKS of a COMPLEX, layered Corporate structure. The data available to the agencies is limited. This applies to ALL comple, layered corporate structures.
2. CORRUPTION & WEAK due diligence (political factors) of SWFs, Investment Funds
Norway’s gigantic sovereign wealth fund loses a record $164 billion, citing ‘very unusual’ year
https://www.pensionpolicyinternational.com/norways-gigantic-soverei...
Hong Kong-Hong Kong Wealth Fund Posts $26 Billion Record Loss in 2022
https://www.bloomberg.com/news/articles/2023-01-30/hong-kong-wealth...
Goldman Sachs Ensnarled in Vast 1MDB Fraud Scandal – Corrupt, Shameless Goldman sachs hasn’t settled - MALAYSIA PM
https://www.bloomberg.com/news/articles/2023-01-30/malaysia-pm-anwa...
QATAR funds are NOTORIOUS https://www.reuters.com/article/us-qatar-fund-kushner-insight-idUSK...
https://www.foxnews.com/world/trump-organization-ended-qatar-push-6...
QATAR FM quits https://www.reuters.com/world/middle-east/qatars-finance-minister-a...
KUWAIT https://www.bloomberg.com/news/articles/2021-06-20/how-a-600-billio...
UAE An Inside Look into the Murky World of the UAE’s Sovereign Wealth Funds
https://insidearabia.com/an-inside-look-into-the-murky-world-of-the...
3. MSCI
https://www.msci.com/our-solutions/factor-investing#:~:text=MSCI%20....
When the stock market regulation is weak (systemic corruption), the adanis of the world with the support of their GODFATHERS can change their ‘financial profile’ and gain entry into the index / influence the weight.
The eight factors groups it uses are: Value, Size, Momentum, Quality, Yield, Volatility, Growth and Liquidity.
MSCI needs significant improvement to their model.
Adani’s FPO SCAM is another DATA SOURCE for (a) money laundering and (b) Oligarchy-Cronyism-Kleptocracy model that Indians are suffering from.
Corrupt politicians, Family Offices, Law Firms, Accountants and other ‘fixers, make 'an economy grow' in a very murky business environment.
Panama & Paradise papers
https://www.forbes.com/sites/naazneenkarmali/2016/04/04/indias-rich...
https://indianexpress.com/article/india/india-news-india/panama-pap...
https://www.thequint.com/news/business/panama-leak-it-dept-chasing-...
https://www.bloombergquint.com/bq-blue-exclusive/adani-groups-growi...
https://www.icij.org/investigations/fincen-files/fincen-files-inves...
https://indianexpress.com/article/express-exclusive/fincen-files-in...
Stock market Regulator
https://www.sebi.gov.in/sebi_data/attachdocs/1411616289051.pdf
https://www.business-standard.com/article/pti-stories/sebi-bans-apm...
Adani embroiled in African corruption scandal via arms deal
https://www.michaelwest.com.au/revealed-adani-embroiled-in-african-...
Adani companies facing multiple financial crime, corruption probes
https://www.abc.net.au/news/2016-12-22/adani-companies-facing-multi...
GLOBAL Protest
https://www.adaniwatch.org/
https://www.facebook.com/groups/stopadanisupportnetwork/
https://www.stopadani.com/
Obstruction of Justice
https://indianexpress.com/article/india/adani-firm-trying-to-impede...
Notably, this money circulates within the group through a high-density of “related party transactions” or transactions between companies that are connected.
https://scroll.in/article/923201/from-2014-to-2019-how-the-adani-gr...
Glass Lewis flags risks from Adani 'unconscionable conduct
https://www.nasdaq.com/articles/adviser-glass-lewis-flags-risks-fro...
Money laundering & Tax Evasion
https://www.sebi.gov.in/sebi_data/attachdocs/1411616289051.pdf
https://offshoreleaks.icij.org/nodes/82028144
Destruction of Environment
https://caravanmagazine.in/reportage/coalgate-2-0
Ref:
What Adani’s Downfall Tells Us About India’s Crony Capitalism https://time.com/6251935/gautam-adani-group-india-hindenburg/
Dr. Soma Marla,Principal Scientist,ICAR,Delhi
https://countercurrents.org/2023/02/bursting-adani-bubble-exposes-n...
Modi’s Rockefeller’: Gautam Adani and the concentration of power in India
https://www.ft.com/content/474706d6-1243-4f1e-b365-891d4c5d528b
Annual Reports of the ADANI Group
ADANI Port: https://www.bseindia.com/bseplus/AnnualReport/532921/73447532921.pdf
ADANI Power: https://www.bseindia.com/stock-share-price/adani-power-ltd/adanipow...
ADANI Transmission: https://www.bseindia.com/stock-share-price/adani-transmission-ltd/a...
ADANI “Green” https://www.bseindia.com/stock-share-price/adani-green-energy-ltd/a...
ADANI “Total Gas” https://www.bseindia.com/bseplus/AnnualReport/542066/73449542066.pdf
ADANI Wilmar: https://www.bseindia.com/stock-share-price/adani-wilmar-ltd/awl/543...
Much of the above is covered in HINDENBURG RESEARCH REPORT
https://hindenburgresearch.com/adani/
The Polyster Prince:
https://www.goodreads.com/book/show/265513.The_Polyester_Prince
Former West Bengal Guv Gopalkrishna Gandhi calls Reliance Industries a 'parallel state'
(Known to 1.2 billion demonetised people)
https://www.financialexpress.com/archive/former-west-bengal-guv-gop...
Book Review: The Silent Coup: A History of India’s Deep State’
https://www.thehindu.com/books/books-reviews/the-silent-coup-a-hist...
As we have seen in the case of Mr Zuma in South Africa, winning elections does not mean that people are doing well. Look up the Misery Index and link it to winning elections. Is there a correlation? There is a causation factor between election funding, spending and winning elections.
In democracies, people choose the lesser evil on the day of election. In most cases, it is choice between the devil and the deep stinking polluted ‘sea’.
About 700 listed firms vanish from regional exchanges
List of disappearing entities could see additions, for first time in 20 years
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