L&T Finance Holdings – Kudos to SEBI for catching the Hedge Fund for Insider Trading

We had posted this article on how there was some rampant insider trading and something fishy in the L&T Finance Holdings inclusion in derivatives and timing of the OFS


This is the link to that article posted on 14th March




This is what we had written

-> Stock included into FNO on 11 March with effect from 13th March. ( NSE has never done a mid contract inclusion and such a quick effect i suppose )

-> Stock rises up the next day from 81 to 86.

-> The stock traded 3 cr shares yesterday with around 32% delivery marked. Around 1 crore shares delivery.

-> With no dividend or any other corporate action the stock was at a 5% or higher discount to the spot price in futures.

-> Yesterday in the evening company declares an OFS    

https://www.bseindia.com/corporates/anndet_new.aspx?newsid=07289df6-d6bb-4dd5-9b3b-d1a6550e580f with a Floor Price of Rs 70.


-> The Open Interest is around 2.47 cr.


The sequence of events is very fishy.


Why did the stock quote at a 5% discount yesterday. Somebody had knowledge about the OFS and sold a good chunk in futures. Today the discount will reduce and so will the price.

A good 1 cr shares got sold off yesterday and a bigger chunk in Futures. The same will get covered today through the OFS of 5-8 cr shares. Somebody could have made a real chunk of money by knowing the above sequence of events stinks icon smile L&T Finance Holdings – Inclusion into Futures and OFS – Something fishy ?



Do check this article

Hedge fund banned for insider trading; Factorial was aware of the floor price, claims Sebi

Read more at:


Kudos to SEBI for acting quickly.


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Nooresh Merani


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