Another Scam in Indian Market LIC/Central Bank of India and BOI

By | November 24, 2010

Another Scam Brewing in Indian Stock Market

Central Bureau of Investigation (CBI) had questioned the top officials of the two entities in connection with an alleged multi-crore fake home loans scandal.

Shares of LIC Housing Finance and Central Bank of India plunged in late afternoon trade on Wednesday after media reports suggested that the Central Bureau of Investigation (CBI) had questioned the top officials of the two entities in connection with an alleged multi-crore fake home loans scandal.

The CBI raids were conducted at New Delhi, Mumbai, Kolkata and Chennai, according to reports.

The shares of LIC Housing Finance, are currently trading at Rs. 1,059 down  20% over the last close. While the shares of Central Bank of India, fell 7.27% and is currently trading at Rs. 199 down Rs. 15.65.

Shares of Bank of India were down 2.12% and is currently tarding at Rs. 464.25. UCO Bank is down 5.19% at Rs. 139.85.

CEO of LIC Hsg, GMs of BoI, Central Bk arrested :

This is a horrendous nature of scam which is surfacing.

CBI has arrested Ramchandranan Nair (CEO, LIC Housing Finance Ltd, Mumbai), Naresh K Chopra (Secretary, Investment, LIC Mumbai), R N Tayal (General Manager, Bank of India, Mumbai), Mahinder Singh Johar (Director, Central Bank of India, New Delhi), Venkoba Gujjal (DGM, Punjab National Bank, New Delhi), and Rajesh Sharma, Suresh Gattani and Sanjay Sharma of M/S Money Matters.

CEO of LIC getting arrested for Bribery Charges This is just the tip of iceberg we will see more number of arrests in this case.Sentiment will get hit and FII will get one more reason to sell. Please hedge your Longs in this market

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