Business
Broker-fund manager nexus modus operandi
The nexus between fund managers and brokers is well known. We often hear that they work hand-in-glove. Today we will take a closer look at how this actually happens.
An order to buy shares or sell shares is decided by a fund manager who then intimates the same to his dealer or chief dealer, who then passes on the order to an empanelled broker to execute the same.
Prior to passing on the order to the broker to execute the same, a position is taken through an accommodative broker in the F&O segment if the share is traded there. Say for example an order is issued to buy a stock which is a part of the large cap stock category. This would trade in the F&O segment. A position to buy futures would be taken. This would help to generate returns as the size of order could be significant and would move the market price of the stock being purchased. Once the ordered quantity is near completion, the futures trade would be reversed and the position taken thus squared off.
The difference between the buy price and the sell price is pocketed without anyone knowing anything. The order in the cash market is completed. Similar would be the case if the order is a sell order. Go short in futures and towards the end of the order square up the short future. This method is fine where the stock is in the futures segment.
Let us now come to a situation where the stock is from the Midcap or Smallcap segments and is not traded in the futures segment. The situation changes. In case of a buy order, a position is taken in the cash markets prior to execution of the order starting. On completion or near completion, it is reversed. In case of a sale order while the reverse does happen, it needs to be borne in mind that irrespective of completion, the short sale has to be squared off before the day ends as all cash sales have to result in deliveries. If the order continues the next day, similar positions are taken on the following day once again.
Let us now take another case where shares are available from a market counterparty. Here the share price at which the deal would be done is finalised. The price starts moving up as the order is executed and the difference between the buying price and the negotiated price is settled.
The key players in this entire modus operandi are the fund manager, dealer or chief dealer and the accommodative broker. In most cases if the scale of operations is large, there would be an understanding between the dealer/chief dealer and the fund manager. The spoils are shared between the broker on one side and the fund manager and dealer on the other side. Percentages would vary on size, number of people involved and so on. Confidentiality being the key, sharing is more or less on equal terms which are pre-decided. Various options are used which include trading in different names and so on.
The key is that all these leave trails and there have been umpteen cases where trades done in the names of family members have been detected subsequently. Hence a proper, non-trail system has to be put in place.
Even TV channel anchors trading in family members’ names have been caught. The solution, which is relatively safer, is that the broker provides an entity in which these trades are done and all profits are settled in cash.
Can this nexus be detected or broken? Yes. There have been various audits which are being done by fund houses, which see the details of the order through trades as it gets filled. Dealing room calls are all on recorded lines which make life more difficult. While there are chances of getting caught in anything illegal being done, no one can save a person who invites attention by driving a car which is an icon by itself.
The Lamborghini car, which is so much in the news, has made the fund manager and chief dealer a person who others have become envious of because of unasked and unwarranted limelight. Should be an easy case for the regulators to crack and plug many loopholes.
Business
7.8 pc GDP growth reflects country’s progress: Maha CM Fadnavis, Dy CM Shinde

Mumbai/Thane, Sep 1: Maharashtra Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde on Tuesday hailed India as it registered a real GDP growth rate of 7.8 per cent in the first quarter of the 2026–27 financial year (Q1 FY27, April–June 2026) under the leadership of Prime Minister Narendra Modi reflecting the country’s progress.
Chief Minister Fadnavis in his post on social media platform X said, “Yehi hai right choice, Bharat! Let’s keep going the same way, same direction. 7.8 per cent growth in such times prove our potential and possibilities as a Nation with PM @narendramodi’s leadership! Congratulations Bharat!”
On the other hand, Deputy Chief Minister Eknath Shinde said that India’s economy continues to demonstrate strong growth with a 7.8 per cent GDP expansion at a time when several nations globally are grappling with conflict and economic fallout.
“This reflects economic progress and stability, this marks another key step toward achieving the vision of ‘Viksit Bharat 2047’,” The Deputy Chief Minister added.
Speaking to reporters on the country’s economic outlook, Deputy CM Shinde expressed confidence that under the leadership of Prime Minister Narendra Modi, India is moving steadily toward becoming an economic superpower and achieving its target of a $5 trillion economy.
He assured that the Maharashtra government will contribute significantly to this journey.
Highlighting the adverse global backdrop, the Deputy Chief Minister noted that ongoing wars and geopolitical conflicts have impacted multiple world economies.
“In contrast, India’s 7.8 per cent growth rate presents a highly promising picture and signals the nation’s rising economic strength.”
Deputy CM Shinde emphasised that every citizen should take pride in the nation’s strengthening economy.
However, he criticised the opposition parties for taking a negative stance on national progress due to political bias against PM Modi.
He remarked that appeals made by the Prime Minister are always aimed at national interest, upliftment, and growth, but are often viewed through a narrow political lens by his critics.
“Instead of questioning progress, everyone should contribute toward accelerating development,” Deputy Chief Minister Shinde added.
Reaffirming the state’s commitment, the Deputy CM said that Maharashtra will fully cooperate with the Central government to reach the $5 trillion target and realise the ‘Viksit Bharat 2047’ roadmap.
He asserted that India’s economic strides are a matter of pride for all 140 crore citizens, adding that the public will appropriately respond to those opposing the country’s growth.
Business
Railways okays Rs 233 crore electronic signalling system at 21 stations in Bihar

New Delhi, Sep 1: Indian Railways has approved a proposal for the provision of modern Electronic Interlocking (EI) at 21 stations of Samastipur Division (Bihar) of East Central Railway with an investment of Rs 233 crore, according to an official statement issued on Tuesday.
The approved work involves the replacement of existing panel interlocking with electronic interlocking at these stations in Bihar. The electronic system will strengthen railway signalling infrastructure across the division and facilitate the implementation of Kavach, the indigenous Automatic Train Protection system, to enhance safety.
Electronic interlocking is a modern signalling technology that replaces ageing relay-based systems with computer-based interlocking, ensuring higher reliability, faster fault diagnosis, easier maintenance and enhanced operational flexibility.
The initiative is part of Indian Railways’ continued efforts towards modernisation of signalling systems, strengthening railway safety and enhancing operational efficiency across its network, the statement said.
Indian Railways has also sanctioned the Bhavnagar Para (BVP) Yard Remodelling project in Gujarat at a cost of around Rs 125 crore. The project will strengthen rail infrastructure in Bhavnagar by creating additional operational capacity at Bhavnagar Para and improving facilities for passengers.
The project will help decongest Bhavnagar Terminus by shifting stabling and other operational activities to Bhavnagar Para. This will enable smoother train operations, reduce rake detention and help improve punctuality. The additional infrastructure at Bhavnagar Para will facilitate better management of train movements and provide greater operational flexibility.
The remodelling work includes four loop lines, one engine reversal line, ART and ARME siding, relocation of the Station and EI building, one high-level passenger platform, widening of the existing platform, extension of the existing Foot Over Bridge (FOB) and construction of one new FOB. The project will also include two Road Under Bridges (RUBs), including one new RUB and extension of an existing RUB, along with service buildings and associated electrical and signalling works.
Passenger convenience will be enhanced through a new high-level island platform, widening of Platform No. 2 and improved FOB connectivity at Bhavnagar Para station. These facilities will provide easier movement and access for passengers, the statement added.
Business
669 metric tonnes onions sold at Rs 35 per kg, Rs 210 crore paid directly to 3,400 farmers: Govt

New Delhi, Sep 1: Retail sales of onions continue at Rs 35 per kg and a total of approximately 669 metric tonnes (MT) of the staple vegetable has been sold to date, comprising 223 MT through bulk channels via the e-NAM portal and similar online platforms at prevailing mandi prices, and 446 MT through retail channels across the country, the government said on Tuesday.
The affordable onion sale is being organised through the NCCF, the NAFED, Kendriya Bhandar outlets, and mobile vans, ensuring affordable availability for consumers.
“Simultaneously, around 1,000 MT of onions are being transported by road to major consumption centres, based on prevailing market conditions and price trends, with the aim of improving availability and moderating seasonal price pressures,” the Ministry of Consumer Affairs, Food, and Public Distribution said in a statement.
Further, Rs 210 crore has been paid directly to around 3,400 farmers, ensuring timely payments.
The government said it has begun a calibrated release of onion buffer stocks through a hybrid transportation model comprising railway rakes (Kanda Express) and road transport to major consumption centres to ensure adequate availability and moderation of seasonal price pressures.
As part of this initiative, two Kanda Express consignments have been dispatched from Nashik. The first rake, carrying 450 MT of onions, reached Delhi in the late hours of August 27.
Of this, 140 MT was subsequently distributed across Varanasi, Lucknow, Chandigarh, and Amritsar, with the remaining quantity distributed across the Delhi-NCR region.
The second rake, carrying 840 MT of onions, reached Chennai on August 31. The Tamil Nadu government plans to distribute these onions through the Public Distribution System (PDS) against the requirement of 1 kg per card.
The onions are likely to be distributed across various districts of Tamil Nadu as per the proposed district-wise clustering:
Retail intervention efforts have expanded significantly across 19 cities, supported by the dispatch of over 30 trucks to ensure widespread availability, said the official statement.
The release of onions from buffer stocks has improved market availability and eased prices, particularly in centres where onion consignments have reached, such as Varanasi, Amritsar, Delhi and nearby markets. Prices have shown a decline from the day following the commencement of disposal, with increased supplies expected to further support price stability.
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