fraud

Jignesh Shah, chairman of Financial Technologies, a financial services group, was arrested as part of an investigation into fraud at a commodity exchange owned by the group, the National Spot Exchange Limited (NSEL).

Shah has been under police investigation since August after NSEL abruptly suspended trade in most of its commodities contracts on July 31. Investigations by commodities regulator, the Forward Markets Commission, showed what it said was a Rs55bn fraud, as the exchange defaulted on obligations to market participants because it did not have enough collateral. Read more

From probes into a $750m AgustaWestland helicopter contract to an alleged land grab involving relations of Sonia Gandhi, leader of the ruling Congress party, corruption in India comes from the top down.

A new report from the Economist Intelligence Unit and Kroll, a US risk consultancy, has found that 69 per cent of India’s companies were affected by fraud in the last year with an average cost of 1.4 per cent of revenues. Read more

Rana Kapoor, CEO of Yes Bank

When the Hay Group teamed up with the Economic Times, the Indian newspaper, to indentify the best company boards in India, they assembled a panel headed by Kumar Birla, the head of the Aditya Birla Group, and asked them to select a list of ten. Lots of contenders, you would think.

But the committee could only find five boards that made the cut. What’s the problem? Read more

If a company suspends shares once amid fraud accusation, it could be merely unlucky. When it does it again six months later, it starts to look like a trend.

That is the unfortunate situation that Zoomlion, China’s second largest maker of heavy machinery, finds itself in now. Back in January, newspaper offices around the world received an anonymous letter accusing Zoomlion of falsely inflating sales, backed up by 76 pages of purported sales records. Zoomlion rejected the accusations as “false” and “groundless”. Its share price fell more than six per cent when trading resumed. The events of this week are eerily similar. Read more

No, not that Carlyle. And not that Buffett. Welcome to the alternate universe of Chinese finance.

A Chinese investment firm going by the name of Carlyle has accused the investment adviser to a fund known as the Buffett No. 1 Plan of committing fraud. The adviser of the Chinese Buffett fund has in turn accused the Chinese Carlyle of money laundering. Both deny the allegations. Read more

January was a scary month for China’s machinery makers and their investors. First, Zoomlion was accused by a “concerned investor” of booking phantom sales, then Caterpillar accused its own recently-acquired Chinese subsidiary of accounting misconduct and took a $580m write down on the value of the deal.

Time for a ghostbusting analyst to bring some rational rigour to the sector. Read more

It has taken almost a week, but one of China’s biggest scrap metal dealers is finally ready for a, er, scrap.

China Metal Recycling, a HK$11bn company, was targeted by a Californian short-seller and research company on Monday. Glaucus Research Group, a new name on the beat-em-up circuit, issued a report on Monday accusing the the Hong Kong-listed group of exaggerating the size of its business. Read more

China’s banks are about to start installing CCTV cameras in steel traders’ warehouses to make sure those traders are using their bank loans to actually trade steel – such is the erosion of trust in that sector.

Banks realised at the end of last summer that things were not going so well for their exposures to the traders, perhaps because, as it turned out, many smaller and mid-sized operations had been using some of their bank loans for purposes other than buying and stocking steel products. Read more