If people start writing accounts of fraudulent public dealings of Essar group then it will fill volumes. However the media esp the print media has been always silent about them and public continued to get duped. Finally Argo Capital Management ltd has been successful in being able to convince a major daily (Financial Times Global Edition) to print the truth and break this mummm. (The ad was forwarded to me by my dear friend whose name I cannot take because it might conflict with her profession)
In 2006 Essar had went to court against Argo’s Cayman Island Branch. Here is a brief summary about it. So in 2010 Argo is finally having its own sweet revenge.
Prax had a wonderful theory: According to him, Big media houses officially get lucrative pre-placement/private deals. After that they promote these dubious offerings and cash out.
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7 replies on “Argo vs Essar”
Thanks , the fact is that it is in india that ipos are almost promoted to the public via govt policy, unlike worldwide where ipos r still considered high risk.
Memory of the good old times when the controller of cap mkts would (under)value stocks guaranteeing a lottery return are still in peoples mind, long after the CCM has been packed up.
if you want to make money in medium term bearing low risk then pvt placement at a decent price always works.
the problem is that how can i get securities issued via private placement?
That takes me to my other theory
Even after being a democracy and a socialist one at that the power of the state is mainly focused on making the rich-richer as it systematically curtails opportunities for the aam admi .. call them vestiges of the indira nehru gandi permit raj.. something the state is heading to in all earnest under mms sonia raj.
in any case the aam admi as defined by congress is one who earns 5lakh plus and needs max tax breaks,
U could invest millions in private deals ipl etc and the works but no pan tan uin required but try to put 1l in a mf and see the torture u face in name of compliance
the rich will always find ways to get richer.. after all they have more resources at their disposal.. and for some their assets/investments work on their behalf.
the question is that
1. will a person without any inheritance be able to afford a decent standard of living or not?
2. how much social mobility is there in the society. i.e. how easy/hard is for a person to move up the social ladder.
Very interesting points
i think India doesn’t score that well when it comes to both points and the access to wealth is still with a select few crony s while most people are given crumbs.
on the first count yes there are a lot of issues and people in unorganized sector are really being given a raw deal.
about socio-economic mobility… the situation in cities is much better than in villages where the jamindars still hold the land and assets. education is a great way to break free of all issues. i studied in Kendriya Vidhalaya (X board) where the fees was 40-60/- range and my engineering college had enough scholarship systems that HOD used to proudly say that no student dropped out because of economical reasons.
politics is another way where one can break away from all the socio economial restrictions..
otherwise also khatris and sindhis those who immigrated from Pakistan without much assest are doing well in indian society
then again, not everyone has access to kvs, and to be successful one has to know how to get around laws in this country as law abiding honest citizen can cannot hope to be very successful with all the govt regulations…
All said and done even to set up a small hotel one needs well over 35 permissions..