MC Insider: Fintech takes on mischievous bears, front-running case update, MD’s foreign trip under lens, and more

A leading Noida-based fintech company has taken up the case of bear hammering on its counter with the market regulator. The company is said to have discovered that a group of investors has been hammering the stock by creating false media rumours about the company on various platforms. The company has shared all the proof and details with the regulator and a complaint has been filed against a specific broking house regarding the same.

The Securities and Exchange Board of India (SEBI) has been known to increase its surveillance in the markets to catch front-running and insider trading. It is well-known in the markets that the new chairperson takes such mischief and corporate crimes very seriously. Another example in SEBI’s zeal to catch such crimes comes in the way it has gone about dealing with recent allegations of front-running at a mutual fund house. It has been a little over three months that this fund house submitted its internally-conducted investigation report to SEBI. Yet, there has been no word since then from SEBI as to what it aims to do with that report. Word on the street is that SEBI, too, has been busy conducting its own investigation. But SEBI refused to confirm or deny when a reporter asked the chairperson at a recent press conference. Given that the SEBI boss has been vocal enough in articulating the regulator’s zeal in curbing front-running and insider trading, one can’t help but wonder that there could be a pretty good reason behind this delay.

Bond desks were abuzz with the central bank digital currency debut last week for trading. The restricted trial use of CBDC seems to be running like a well oiled machine. Bond counters are going kaching instantly with real time settlement and we hear the excitement among traders is palpable. Does this mean the regulator is going to go guns blazing for everything else? As this one trader said, "You do not rush Christmas. There are 12 days of it and a whole lot of preparation." We hear that slow and steady would be the motto, and not just for the retail avatar of the CBDC.

As you read this, the managing director of this private bank is abroad, said to be on an official foreign visit. Some shareholders are upset about this visit. Why? Because the bank has no foreign operations. So why is the MD abroad spending the bank's money, they ask. The MD has been on a frictional course with some shareholders in the past over a nasty power tussle. Some shareholders also have questioned the rising 'uncontrollable' expenditure of the management. So, there is a context to the shareholders' displeasure. On his return, the chief will have a lot of explaining to do with shareholders about his foreign sojourn, it seems!

After a complex restructuring exercise done recently by one of the world's largest agrochemical companies, word on the Street is that one of the firm's most lucrative verticals could soon find themselves listed on a foreign stock exchange. While the timing of the potential listing is uncertain, the listing itself promises tantalising prospects for private equity investors that hold considerable stake in the vertical.

One more on deals, this time from the pharma sector. If you thought the sector has lost its mojo after the action-packed Covid days, that might be about to change with some big deals. The M&A pace in the sector could soon gain momentum. First of the lot that we picked up is that a large inbound transaction is on the cards. Watch this space for more.

They are two unicorns in the same sector. The one that has $150 million in its bank account is seemingly spending left, right and centre on marketing. The other one has upwards of $400 million left in its kitty after a fundraising blitz last year, but has pulled the purse strings in marketing. The latter's employees are disappointed. They have to deal with puzzling questions from friends and family when the competing brand is visible on television ads. Yet, the top brass of the wealthier-but-thrifty company is in no mood to increase the cash burn that has been halved with much effort in the past several months.

Not too long ago, the founder of this company used to be the marquee guest at nearly every event, where he used to talk about his success story, challenges, struggles and how he managed to turn his enterprise into a unicorn in a few years. However, the tide seems to have changed as the startup has been dogged by controversy. We hear that this may have dented the company’s image. Consequently, he seems to have lost clout at such events, in India or elsewhere. We understand that the company’s investors too are not happy about some of the recent announcements by the firm, but the founder is in no mood to heed anyone’s advice at the moment.