Law Michael Jordan – Page 12 – Contains about law Information

29
Jul
2018

Do Operators Run The Stock Market

categories: Law

There is a general belief among most investors that markets are controlled by operators and it is no place for small investors. It is believed that the operators enriched themselves at the cost of small investors. Two scams of 1992 and 2002 had certain operators at the center of the storm. There were other star players in the market also in the past that had a big role to play in the market movements. Let us examine the validity of the statement that Stock Markets are run by operators.

An operator is a person who is supposed to drive the market price of a particular share that is he decides what should be the pricing of the share and whether it should go up or down. It is also believed that operators in association with the management of the company first acquire certain stocks in the market and subsequently through rumors and such other communication mechanism create a mass interest in the share. Subsequently once the general public starts believing in the companys prosperity the operators sells the shares and makes handsome profits. Some operators also use circuit mechanism of stock exchanges to hike the price. The circuit mechanism allows the operator to put an order at a price which is 3 to 8% above the previous days closing. Once the share hits upper circuit there are very few sellers in the market since they believe that if the share has hit upper circuit it is likely to go up further. This is the modus operandi of an operator. For an operator to be successful some factors are very
important. Such as connivance with the management, low capital base of the company so that manipulation can be done with very little capital and a mass following.

Is manipulation possible in high volume shares? Let us now look at the trading statistics reported by stock exchanges (data of a particular date). Top 30 scripts i.e. 10 in each group, account for 41% of turnover in NSE and 37% of the turnover in BSE. Both the Exchanges put together this translates in to a value of about 4100 crores on a daily basis. As per the market share reported of brokers by NSE (NSE Bulletin) top 10 trading members account for just 24% of the market share i.e. on an average each broker would have about 2.4% of the market across all company shares traded by the company. Hence, the dominance that a single broker can have on the volumes in the market is minimal in highly traded scrips.

Then we move to low value high volume traded scrips. As per the data is provided by newspapers separately on Quotations page, the aggregate value of shares traded in this category on a particular date was studied. The turnover for BSE in such scrips was Rs.34,03,470 i.e. .01% of total turnover and for NSE is Rs.20,28,050 i.e. 0.003% and in terms of number of shares traded it is 1.5 % in case of BSE and in case of NSE 0.45%. This is one area where low funds can help to move the prices and give a false sense of liquidity. Hence investors are advised to refrain from investing in scrip just because it is low value; the merit of the share should be looked into before making the investments.

The Stock exchanges have a system of guiding the investors on stock selection by way of classifying the companies into various groups. A group stocks are highly liquid and good performing companies. B1 group are again good performing companies with lesser liquidity then A group stocks. B2 are stocks that have low capital bases and less liquid. Companies that do not adhere to Listing agreement are categorized as Z group. These companies do not attend to investor complaints and fail to file various investor related information with the stock exchange such as quarterly working, book closure dates etc. Shares which have concentrated activity and unusual price movements are categorized in T 2 T or trade for trade settlement, ie every sale and purchase must result in delivery and positions cannot be squared off during the day. This classification should be kept in mind while selecting a company for investment. Stock exchanges also verify the news items appearing in leading

newspapers and get companies to clarify on rumours. This information is also of vital importance since operators and company managements at times plant false stories in newspaper to mislead the public.

Special laws have been put in place to act as deterrent to such manipulation. The Insider Trading Regulations and Fraudulent and Unfair Trade Practices regulations are the tools available to SEBI to taken action against those manipulating the markets. The punishment is maximum penalty of Rs. 25 crores and imprisonment. Both these laws have been enacted in early 2000. Hence their effectiveness will be proved only with efflux of time. Till the enactment of these laws the prosecution of persons indulging in market manipulation had to be tried under the general legal system, the delays in the same are not unknown to us.

We always blame the regulators, brokers and exchanges if scams happen in markets. However the menace of operators will go only if we stop following their leads in the market. Tips given by operators are widely followed, and so long as you make money on these tips we do not blame anyone. However once the operator weakens then there is fall in prices and the blame game starts. Operators are creations of society and the greed inherent in all of us. Easy money by riding the operators tips is a strong attraction. Scams bring down the prices of not only the shares which were manipulated by the operators but also all other fundamentally good shares also held by us. Mass following that the operators thrives on would be absent if we refrain from buying those shares that are remotely associated with any operator. Reporting wrongful activities of company managements, dabba traders and other market participants will help the regulator in directing their efforts on the wrong doers. Remember, being a spectator to a wrongdoing and not reporting the same is as bad as committing the crime.

27
Jul
2018

Buying Legal Research Chemicals

categories: Law

Legal Research Chemicals are chemicals still being investigated. Often referred as an Analogue, research chemicals refer to drugs chemically related to an illegal drug with similar effects. Most applications are for use only in chemical research and analysis due to the ultra pure nature of their composition.

Generally, research chemicals are considered unsafe for use other than in controlled conditions and individuals are strongly advised not to ingest or consume them. However, due to the psychoactive nature of the drugs, many chose to ignore such advisories, and it is not hard to do so as they are available through many online organizations based throughout the world.

One of the cautions regarding use of research chemicals is due to the lack of information regarding their toxicology or pharmacology. With such a dearth of empirical data, there are no recommended standard dosages. User reviews can be unreliable because people react differently to ingested drugs.

Legal research chemicals are available to buy from online distributors, although the laws vary as to import and export restrictions. For example, Canada cannot freely distribute controlled substances in the United States, and in some cases, importing is permitted but exporting is illegal.

Research chemicals are accessible from specialized supply companies, although purchaser credentials may be required before shipment. Requesting information online could prove risky because if someone is seeking to buy legal research chemicals can be arrested for violating Analogue Laws and online posts can be used as evidence.

Legal powders, also called party powders include Cocaine and PCP; numbing powders. Again, legality varies from nation to nation, continent to continent. Even when cannabis oriented powders are acceptable, others may not be. Consult with a reputable source before seeking to purchase.

Bath salts are fine for soaking in, yet also refer to a line of designer drugs, which are based on synthetic chemicals similar to amphetamines, most of which are illegal. With benign labels such as Ivory Wave, Purple Wave, and Bliss, no one really knows with any certainty what they contain and therefore, what is consumed.

It is important to remember that research chemicals, legal powder and bath salts all are accessible if one wants to find them. The source of the product is perhaps the best means of preventing tainted substances and learning information regarding manufacturing, ingredients, uses and cautions.

In China, for example, the laws regarding synthetic chemicals and powders are strict. In Europe the trend is more tolerant. Portugal legalized heroin and realized a significant decline in addiction as a result. There is a clear distinction in Europe between hard and soft drug possession, distribution and consumption. North and South America impose harsh penalties, as do most international communities, for trafficking.

21
Jul
2018

What Is The Can Spam Act

categories: Law

The Can Spam Act was passed in 2003 and was one of the first laws to control spam. There is much controversy surrounding this law; many people believe it is a victory for e-mail users who are worried about risky spam, and others feel that it is a green light to certain spammers who want to foist aggressive advertisments on consumers.

The law is quite strict about illegal activities, but seems to allow loopholes for regular commercial business whose spam many e-mail users also find annoying. Still others greet the law as a first step in bringing the battle against spam into the public sphere.

The Can Spam Act stands for Controlling Assault of Non-Solicited Pornography and Marketing Act. Those who must follow this law are all those who send commercial e-mail that promotes a service or product. Sending mass advertising is permitted as long as the information is not false or misleading and doesnt involve any illegality.

The agencies with the jurisdiction to enforce the Can Spam Act are the FTC (Federal Trade Commission) and the DOJ (Department of Justice). These agencies can enforce criminal sanctions against those who violate this law. Federal and State agencies can also serve as watchdogs and to take care of spam problems.

Under the Can Spam Act, businesses are not allowed to use misleading information in their headers, and cannot use false headers as hooks to lure someone to open an e-mail that contains information that is different from that suggested by the header. The e-mail must give the recipient the opportunity to state that he or she does not want to receive any more e-mail promotions from that company.

Once the recipient has ordered the sender to stop sending e-mails, the sender is given 10 business days to cease from sending e-mails to that person. Under the Can Spam Act, it is illegal to sell e-mail addresses to others.

Activities that are strictly prohibited under the Can Spam Act include: using other computers as spam zombies, selling e-mail addresses from those who do not want to be contacted, labeling sexually explicit material as something else with a deceptive header or subject line, and harvesting the net for private information about individuals, including e-mails. These activities can lead to a $11,000 fine or jail time.

Many people were heartened by this law, while others were disappointed. The reactions were often opposite of those expected. Many spammers who simply promote their business with mass, unsolicited e-mails, but do not create spam zombies or engage in illegal activities, applauded the law as a legitimization of their business practices.

Many Californians who wanted to make all spamming illegal in their state were disappointed by the laws leniency regarded unsolicited marketing. However, even those who were disappointed saw it as a first step toward spam regulation.

Some wonder about the effectiveness of the Can Spam Act, and indeed, about the viability of attempting to regulate the net at all. Many people receive so many spam e-mails that they do not have the energy to report every case that appears.

Similarly, agencies are usually swamped with complaints, and can only deal with the most serious cases. Therefore, some believe that this is the reason the law only deals with dangerous spammers rather than with annoying ones. So, at least for now, it looks like spamming is here to stay.

17
Jul
2018

An Overview on Silent Partnership Agreement

categories: Law

Silent partnership agreement is crucial to run a joint venture smoothly:

Silent partnership agreement is basically a legal agreement between two or more people who enter into a joint venture but in a silent partnership the responsibilities of partners are different from each other. In the silent partnership, the silent partner usually provides finances and stays away from the day to day working of the business while the other partner or partners manage to run the daily affairs of the business. The silent partner do not participate in daily management affairs as he is not responsible for the running of the business but shares the profit or loss according to the pre-determined ratio.

The only responsibility of a silent partner is to provide financial investment to a joint venture while the other partner or partners take the responsibility to run the business by managing the daily affairs of the joint venture. While doing a silent partnership in South Africa, it is highly recommended to draft a silent partnership agreement which will help in the smooth run of the joint business and will also assist in resolving the disputes or misunderstandings that may arise in the course of the business.

Legal importance of silent partnership agreement in South Africa: While running a joint venture in South Africa in which a silent partner is involved, drafting and signing a silent partnership agreement becomes very important. It comes under the South African Companies Act, 1973. This partnership contract helps all partners involved in a silent partnership to determine the duties or responsibilities of each partner and also to define the procedures to resolve the disputes in this partnership in a mutually agreed fashion without going to the court. This silent partnership agreement is drafted by the mutual consent of all partners and helps them to run the business without experiencing any sort of disapproving situation. This agreement clearly states the responsibilities of the silent partner that he is supposed to provide financial investment and the other partner will work hard while participating in the managerial duties and will tackle day to day affairs to run the business. With the help of this silent partnership agreement, all partners will be able to resolve their disputes easily in a peaceful manner instead of going to the court in South Africa. This silent partnership agreement is comprised on the following major points.

Name of Business

Location or physical address of business

Nature or the business

Contributionsfrom partners (time, money, property etc)

Profit/loss sharing ratio

Responsibilities of all partners (silent and others)

Decision making

Termination of the agreement

In a country like South Africa, it is very important to draft a silent partnership agreement which plays a vital role in the smooth sailing of a joint venture and helps all parties to resolve their conflicts rather easily.

Net Lawman are adept in providing all kinds of silent partnership agreement templates which are highly beneficial for people who are going to start a silent partnership as these templates are drafted in a comprehensive and easy way in plain English which can be edited easily according to the requirements of people.

12
Jul
2018

Legal Offshoring India’s Pie!

categories: Law

In this highly competitive global market every corporation requires to work on minimal margins and they required adopting cost cutting measures and that is where outsourcing became imperative.

Legal Process Outsourcing (LPO) is the third big Leap of outsourcing industry in India, after Business Process Outsourcing (BPO) & Knowledge Process Outsourcing (KPO). LPO is an activity or practice to get legal support services from legal services firms or corporations.

In the beginning, LPO covered mostly low-end transcription work (Data management, Word Processing, Litigation support, Book-keeping and reconciliations etc.) but now LPO also includes a huge range of high end legal processes such as patent application drafting, legal research, pre-litigation documentation, advising clients, writing software licensing agreements and drafting distribution agreements.

The total market size of Global LPO business is around USD 250 billion. And out of this US alone captures two third of LPO business. The growing cost of Legal services in USA leads it to outsource or offshore the legal activity. It was very necessary for US law firms to obtain the Legal support services from outside to either save their business by cost cutting or for profit making.

There are a lot of examples of US law firms that were running their business successfully & were well known in their field but due to increasing cost in legal services they could not survive. And these failure firms proved to be a good learning example for rest of the firms or corporations and it became imperative for US law firms to outsource the legal support services.

India had already proved its reliability with its IT BPO & KPO services, so it emerged as a favorable destination for LPO business. The first legal outsourcing to India started back in 1995, when Bickel & Brewer the Dallas based litigation firm, with 34 lawyers opened an office in Hyderabad.

The next thing that gave an impetus to the industry was when General Electric, in 2001, added a legal division to their currently existing base of operations in India. This legal cell was specifically started to handle legal compliance and research for GE plastics and GE consumer finance (Divisions of GE capital). Thereafter, the industry witnessed a steady upswing in demand for outsourced legal services from India. And then the foreign players started coming in India.

This gave an opportunity to the Indian lawyers & students wanting to go abroad or want to earn hefty amount get good opportunity to work with legal outsourcing firms.

In India most of the Legal Process Outsourcing business revolves around three major activities.

Legal transcription and drafting services: Law firms have extensive documentation requirements, which normally get outsourced to India. This involves data entry or activities like sending correspondence, document management and indexing, drafting memos etc. This is the entry level, low value high volume task. Owing to low risks, this sometimes tops the priority lists for firms starting outsourcing.

Patent prosecution assistance: This is the hottest area in Legal Processes Outsourcing. It involves assistance in filing patent applications, infringement studies, IP asset management services, prior art searches etc.

Legal research: It involves performing legislative history research, jurisdiction studies and other typical case study researches that are common with the legal profession. When dea ing with corporate activities, like mergers and acquisitions legal due diligence of the potential targets or acquirers and their accompanying legal issues becomes imperative. This involves extensive data research etc and hence a lucrative outsourcing task.