InvestorQ : Why did the stock of Manappuram rally so sharply in the last hour of trade on December 13, Friday?
NISHA Nayak made post

Why did the stock of Manappuram rally so sharply in the last hour of trade on December 13, Friday?

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Mitali Bhutta answered.
2 years ago
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Actually, the really had little to do with the company performance and more to do with Ambit Capital settling its insider trading allegations in Manappuram Finance back in 2012 by paying Rs.6 crore. For Manappuram, this had been a major corporate governance issue and that overhang is now out of the way for Manappuram. SEBI settled the proposed adjudication proceedings in the case, pertaining to alleged violation of insider trading norms. Ambit approached SEBI with a plea under the settlement regulations “without admitting or denying the findings of fact and conclusion of law”.

The case dates back to 2012-13 when Ambit Capital had been in possession of unpublished Price Sensitive Information about Manappuram Finance’s quarterly results. This had been circulated to its clients indirectly by way of a negative research report. This was a clear contravention of insider trading regulations. With the case closed via settlement, or plea bargain, as it is better known, the overhang on the Manappuram stock is gone leaving room for the stock to perform based on fundamentals?

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