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
Q1 results, inflation, US-Iran tensions among key triggers likely to drive stock market next week

Mumbai, Aug 9: Indian stock markets are likely to remain volatile next week as investors track a busy earnings calendar, the release of July retail inflation data, movements in crude oil prices, geopolitical developments surrounding the US-Iran conflict and foreign institutional investor (FII) flows.
Indian equities ended the week on a positive note despite heightened volatility, with investors assessing the implementation of the new Closing Auction Session (CAS) framework for F&O stocks, the Reserve Bank of India’s monetary policy decision and persistent geopolitical uncertainties.
The Sensex gained 0.52 per cent over the week to close at 78,499.17, while the Nifty rose 0.77 per cent to finish at 24,570.65.
A key focus for investors next week will be the ongoing Q1 FY27 earnings season. Several prominent companies are scheduled to announce their April-June quarter results.
Markets will also react to India’s July retail inflation data, which is scheduled to be released by the Ministry of Statistics and Programme Implementation (MoSPI) on August 12.
Geopolitical developments, particularly those involving the US, Iran and the Strait of Hormuz, will remain another major market trigger.
Iran has reportedly put forward fresh conditions for reopening the strategically important Strait of Hormuz, while the UAE has reported that one of its vessels was targeted by an Iranian missile.
Any further escalation in geopolitical tensions or delays in reopening the shipping route could put additional pressure on crude prices.
FII activity will also remain on investors’ radar. Foreign institutional investors turned net buyers of Indian equities on Friday, snapping their brief selling streak.
According to provisional exchange data, FIIs purchased shares worth Rs 12,941.31 crore and sold equities worth Rs 12,461.07 crore, resulting in a net inflow of Rs 480.24 crore.
Domestic institutional investors (DIIs) continued to support the market, recording a net inflow of Rs 235.56 crore on Friday. DIIs bought equities worth Rs 15,679.58 crore and sold shares worth Rs 15,444.02 crore.
Business
India exported over 7,000 metric tonnes of Makhana to over 20 global destinations in FY26

New Delhi : India exported more than 7,000 metric tonnes of Makhana and value-added Makhana products to over 20 international destinations, including the US, the Middle East and Africa, in last fiscal (FY26), the government informed on Saturday.
Bihar accounts for nearly 85 per cent of India’s Makhana production. To further strengthen the sector, a separate HS Code for Makhana came into effect from July last year under the Finance Bill, 2025.
In a new feat, APEDA facilitated first-ever commercial sea shipment of 18 metric tonnes of GI-tagged Mithila Makhana from the BIADA Industrial Area in Bihta, Bihar, to Australia.
The consignment, sourced from Makhana growers of Darbhanga district, is expected to strengthen the international presence of Bihar’s flagship GI product while creating enhanced income opportunities for farmers through export-led market access, according to Commerce Ministry.
The initiative has enabled farmers to realise nearly 18 per cent higher returns than prevailing market rates, highlighting the benefits of export-oriented value chains and direct market linkages.
The export is expected to strengthen the international presence of GI-tagged Mithila Makhana, create sustainable export opportunities for Bihar’s Makhana sector and contribute to higher farmer incomes.
State Agriculture Minister Vijay Kumar Sinha said Makhana is the identity of Bihar and greater participation of Bihar-based exporters in international trade would enable farmers to secure better price realisation.
He emphasised the importance of maintaining quality standards to meet global market requirements and stated that the Government of Bihar is continuously working to strengthen the Makhana value chain by supporting growers, processors and exporters.
The minister further said that all necessary support would continue to be extended to the Phori community, whose traditional skills are integral to Makhana processing.
The first-ever sea shipment of GI-tagged Mithila Makhana to Australia reflects the growing global demand for Bihar’s agricultural products and opens new opportunities for farmers and exporters, he added.
Business
CSIR conclave reviews first-year progress of Phase III skill initiative

New Delhi : The Coordinators’ Conclave‑cum‑Meeting of the Monitoring Committee of the CSIR Integrated Skill Initiative reviewed the progress made during the first year of Phase III of the initiative, an official statement said on Saturday.
The statement from the Ministry of Science & Technology said the two‑day meeting facilitated knowledge exchange among participating laboratories and strengthened collaboration for effective implementation of the programme.
The conclave was hosted by CSIR‑HRDC in association with CSIR‑National Chemical Laboratory, Pune, and brought together Skill Nodal Coordinators from all 37 participating CSIR laboratories to present annual progress reports covering programmes conducted, trainee outreach, innovations, challenges and future action plans.
These presentations enabled the Monitoring Committee to comprehensively assess the implementation status across laboratories while providing an excellent opportunity for sharing best practices and successful models of skill development.
Dr. Mohana Krishna Reddy Mudiam, Director, Institute of Pesticide Formulation Technology (IPFT), Gurugram, and Chairman of the Monitoring Committee underscored that skill development is an integral part of nation-building and outlined five key priority pillars to guide the CSIR Integrated Skill Initiative towards building a robust, future-ready, and industry-aligned skill development ecosystem.
Dr. Vinay Kumar, Scientist-G and Skill Nodal Principal Investigator, CSIR-HRDC highlighted Skill Initiative’s pivotal role in creating a nationwide skill development ecosystem for nurturing industry-ready talent to build a technology-driven workforce.
Dr. Ashish Lele, Director, CSIR-NCL, Pune emphasised that CSIR is uniquely positioned to make a meaningful contribution to the Skill India Mission by leveraging its extensive nationwide laboratory network and scientific expertise to help position India as a global hub for skilled talent.
Dr. T. S. Rana, Head, CSIR-HRDC, Ghaziabad, emphasised CSIR’s commitment to transforming knowledge into digitally enabled, experiential, and innovation-driven solutions for skill development.
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