Healthy Lifestyle Essay Example for Free

Healthy Lifestyle Essay The Role and Issues that arise of the GetFitCrossFit Organization among adults in Brunei. Health, a fortune I wish upon every woman or man I see for without it she or he will not be able to explore the seas. Although the ideal concept would be for everyone to live a healthy lifestyle, the world is evident that this is difficult to achieve. The leading causes of worldwide deaths are diseases which I believe can be prevented (Grifantini, 2010). Simply, health is a necessary commodity to carry out everyday tasks, and if one would like to carry out a task well, one needs to have a healthy mind, body and soul (World Health Organization, 1948). In Brunei, in the recent years, the government keeps campaigning for healthy lifestyles, banks and other companies hold marathons, GetFitCrossFit organization has been rising and is very popular now. However, although these efforts have its role and aim on maintaining and achieving a healthy lifestyle, it may not be affective. Hence, this essay will elaborate on the role and the effectiveness on the GetFitCrossFit organization among adults in Brunei. First and foremost, it is the members’ responsibility to understand the elements of fitness, examine their present fitness status, decide to begin or continue suitable exercise habits and lastly to determine their health behaviors that need to be changed following appropriate steps (Howley Franks, 1991, p.10). The role of this organization is basically to keep fit and practice a healthy lifestyle. Adding to that, their aim is to make people fast and strong. This organization concentrates on mainly on three fundamental factors that must collaborate in order to benefit from workouts which are exercise, nutrition and recovery. Weightlifting, gymnastics and running are the components used for the exercise in balancing strength an d conditioning. Balanced diet is really important in terms of reducing processed food and sugar and more natural foods (Rodriguez, 2009). As for the recovery, proper sleeping habits are needed, stretching and make the soft tissues work by massage therapy. The GetFitCrossFit organization is organized and thorough with what they do. Members will have a full fitness assessment before starting because each individual will have a safely designed workout done by the committee. Not only will the members be coached during the workout but also in and out of the gym. Everyone in this organization motivates one another and improves by working hard, having determination and a persevering attitude. This organization’s slogan is  Forging Elite Fitness (GetFitCrossFit, 2012). An individual that enters this organization has definitely made a crucial move towards improving or maintaining their present fitness level but there are issues that may arise among adults in Brunei (Howley Franks, 1991, p.10). Firstly, setting goals is important so that there is an aim to strive. If there are no goals, there is no motivation and a clear plan. This will lead to not being able to see any results from start although GetFitCrossFit assist one person in making healthy changes; one person still have to decide on what changes to make. Secondly, some people are afraid of pain, injury and torture that they might encounter hence not wanting to join this organization. Some people may go for the first time and after finding out what it is all about, they give up as they do not have the mindset of putting in efforts to be fit and healthy. Thirdly, GetFitCrossFit has a fixed time resulting in the main biggest reason to not join or stop this organization is that they have no time. This shows that prioritizing is really poor among adults in Brunei. Fourthly, some people are afraid of their reputation. They may be embarrassed on their appearance, the mistakes they may make, having weak health and poor stam ina (Why people stop exercising, 2012). Letting go of bad habits such as reductions in smoking, alcoholic drinking, weight, eating unhealthy food and stress are also the major issues (Howley Franks, 1991, p.211). Lastly, this is rare but some people can’t afford the membership payment which costs hundred dollars per month. Moving on will be the effectiveness of this organization. GetFitCrossFit organization meets every day except on Sundays after 6pm onwards and in the mornings on Saturday. Amazingly, every Tuesday, the GetFitCrossFit outdoor session is held at the University of Brunei Darussalam. The rest of the days, it is held at their gym which is called the box (GetFitCrossFit, 2010). This organization has a blog which will be updated daily to guide their members before the actual workouts in the evenings occur. According to Tobey (1920, p.649), Emerson once stated â€Å"The first wealth is health.† Therefore the members in this organization do not take this as an expense but instead a necessity and money well spent. They see this as an activity of making new friends and having fun as well as getting or keeping fit. Some people get motivated by having a group of people in an organization having to follow rules and regulations rather than exercising alone (Too, 2011). Exercising  and keeping fit does not only improve and maintain fitness level but it can have a huge impact on living longer even not losing weight (Gard ner, 2011). Besides that, GetFitCrossFit promotes its organization really well. For every first Tuesday and Wednesday of the month, eligible students and unemployed may attend their sessions for free (GetFitCrossFit, 2010). The Social Medias such as Facebook, Twitter, Ranoadidas and Bruneitweet plays a big role in advertising their organization (Sheridan, 2012). Even the bruneitweet, Delwin Keasberry, is a member of this organization. Current members share their e xperiences and goals with their colleagues at work, school and their social peers which really motivate them and hence joining this organization. GetFitCrossFit are also known through the newspapers as they help for charities. They also hold motivational talks to different institutions and participate in road shows. In conclusion, exercise and fitness are necessary elements in order to lead a healthy lifestyle. It is definitely clear that in order to live long, one needs to have a healthy life. Although Brunei is trying their best to promote and campaign for healthy lifestyles, the issues as mentioned above may arise. GetFitCrossFit organization has a very good intention, motivation and role but it really depends on how effective the organization is. Advertisement and promotion is really important to show adults in Brunei what GetFitCrossFit clearly does and their aim. To wrap it all up Benjamin Franklin once said that â€Å"An ounce of prevention is worth a pound of cure.† (

Soliloquies Essay - Kates Soliloquy in The Taming of the Shrew :: Taming Shrew Essays

Kate's Soliloquy in The Taming of the Shrew Kate's soliloquy brings about a joyous conclusion to The Taming of the Shrew. The audience leaves the theatre with a pleasant feeling, glad that such a shrew could be tamed so well. Kate herself realised the error of her ways, making the men feel confident while making the women feel safe. Moreover, the audience found the speech to be very sound and sensible, as the views expressed in the play were extremely popular at that point in time. Kate, in realising her iniquitous ways, made the men feel extremely confident of their status in Elizabethan society, and effectively reinforced their beliefs about their own strength. Also, Shakespeare succeeds in creating a feeling of safety for the female audience, as well as in making them feel as through they are accepted for their kindness to men, and in the norm. Women, not having a strong role in society at that time, enjoyed receiving praise and encouragement for their purpose in society. Furthermore, they felt vindicated as Kate solemnly insulted the disobedient women (Bianca and the Widow), telling them to "Come, come, you froward and unable worms!". It may also be said that this play, as well as similar plays of the Elizabethan era, assisted in contributing to the oppression of females in society for an innumerable amount of years. After the conclusion of The Taming of the Shrew, including Kate's soliloquy, the audience is left with a proud feeling - proud of the fact that Petruchio tamed such a shrew so well. The men of the audience are about with feeling of satisfaction and justification. Shakespeare skillfully catered towards both sexes by using Petruchio much like the stereotypical action figure of today; a character who does the unbelievable effortlessly and leaves the audience in awe. In the play Petruchio, short after the inception of his skillful wooing, begins a plan "to kill a wife with kindness". Craftily he gives her anything that she pleases, only to swipe it away when he finds a flaw in the item. he also resorts to keeping Kate as a prisoner in his home, until she slowly becomes subservient and submissive to him.

Nostalgia

A Universal Feeling How many times have you reminisced on a certain memory and It almost felt Like you were there again? You could smell, see, and even taste that exact moment. These memories are always triggered by something, but you are not entirely sure what. You are overcome with a longing for that moment in time and the memory is so fond that you can't help but feeling warm inside. Nostalgia is the sentimental longing felt when reminiscing on the past.It is not a feeling of melancholia but more of a bittersweet sentimentality for what once was. Nostalgia has been widely used to describe many notations but has Just recently been modified to describe a positive experience. The word nostalgia was first coined in the 17th century. The term was used to describe the medical conditions of Swiss mercenaries who longed to return home. Nostalgia soon became a name for a disease who's symptoms included fainting, high fever, stomach pain, and even death.By the late 19th century nostalgia wa s discarded as a medical condition and recognized as a form of melancholia and a mentally repressive disorder. Now nostalgia has a positive meaning. It Is classified as the term to describe the exact feeling felt when thinking of past memories. Nostalgia does have a positive effect on an individual. The Oxford English Dictionary defines nostalgia as sentimental longing for a period of the past. Merriam- Webster Dictionary says is it pleasure and sadness that is caused by remembering something from the past and wishing that you could experience it again.The most common synonyms used when referring to nostalgia are sentimentality and yearning. The important things about these definitions are the positive tones they all have. Many people have experienced nostalgia at some point in their life, whether that be a nod memory from childhood or a strong feeling of homesickness. Many of these happy memories even trigger an euphoric feeling that takes you back to that certain place or time. Th ese overall feelings provide a sense of comfort when life gets difficult.Young adults find that reminiscing on past memories has helped them smoothly transition into major life changes such as moving away from home. Nostalgia has been proven to counteract boredom, anxiety, and even loneliness. When things are especially difficult in different aspects of my life I find that I begin to feel lonely. Loneliness has always been a horrible feeling to cope with because there is nothing more helpless than feeling like you don't have anyone. With that loneliness I start to question the continuity of my life.Why am I not friends with that person anymore? What am I supposed to be doing with my life? At this point in my life everything Is changing and there isn't a stable thing that roots me to reality except for my memories. On the days that I feel anxiety or loneliness I always think of a certain memory that brings me back to a happier time. The memory Is always the same, but I can feel It be tter than I remember It. I remember the way the alarm feels a room window and noticing how the sun isn't quite as high as it normally is.I remember the exact smell of the cinnamon candle that my mom starts burning every fall. This memory has no actual significance but somehow it gets rid of all the loneliness I feel and makes me feel continuity and optimism instead. Nostalgia itself does not involve any feelings of melancholia. The literal act of nostalgia is to recall a memory that is fond to you in some way. The purpose of remembering past memories is to relate them to now to provide the sense of nonentity that you need to maintain a comforting balance when life changes..The experience of nostalgia is positive; the aftermath is not. Nostalgia is often confused with unpleasant feelings because of the longing that occurs when remembering a great experience from your past. But that longing is not an overall bad emotion it is just a reminder of all the positive things that once were. The term nostalgia has come a long way since it days of an actual medical condition to its description of a positive emotion. It is important to remember that nostalgia is not only Just a positive emotion but a positive experience.

What Is Stereotype Threat

Stereotype threat occurs when a person is worried about behaving in a way that confirms negative stereotypes about members of their group. This added stress can end up impacting how they actually perform in a particular situation. For example, a woman might feel nervous when taking a math test because of stereotypes about women in math courses, or worry that receiving a poor grade will cause others to think that women don’t have high levels of math ability. Key Takeaways: Stereotype Threat When people worry that their behavior might confirm a stereotype about a group they are part of, they experience stereotype threat.Researchers have suggested that the stress of experiencing stereotype threat can potentially reduce one’s score on a standardized test or grade in a challenging course.When people are able to reflect on an important value—a process called self-affirmation—the effects of stereotype threat are attenuated. Definition of Stereotype Threat When people are aware of a negative stereotype about their group, they often worry that their performance on a particular task might end up confirming other people’s beliefs about their group. Psychologists use the term stereotype threat to refer to this state in which people are worried about confirming a group stereotype. Stereotype threat can be stressful and distracting for people who experience it. For example, when someone is taking a difficult test, stereotype threat can prevent them from focusing on the test and giving it their full attention—which may lead them to receive a lower score than they would have without distractions. This phenomenon is thought to be situation specific: people only experience it when they are in a setting where a negative stereotype about their group is salient to them. For example, a woman might experience stereotype threat in a math or computer science class, but wouldn’t be expected to experience it in a humanities course. (Although stereotype threat is often studied in the context of academic achievement, it’s important to note that it can happen in other domains as well.) Key Studies In a famous study on the consequences of stereotype threat, researchers Claude Steele and Joshua Aronson caused some participants to experience stereotype threat before taking a difficult vocabulary test. The students who experienced stereotype threat were asked to indicate their race on a questionnaire before the test, and their scores were compared to other students who did not have to answer a question about race. The researchers found that black students who were asked about their race performed worse on the vocabulary test—they scored lower than white students and lower than black students who were not asked about their race. Importantly, when students were not asked about their race, there was no statistically significant difference between the scores of black and white students. In other words, the stereotype threat experienced by black students caused them to perform worse on the test. However, when the source of threat was taken away, they received similar scores to white students. Psychologist Steven Spencer and his colleagues have examined how stereotypes about women in STEM fields could impact women’s scores on a math test. In one study, male and female undergraduate students took a difficult math test. However, the experimenters varied what participants were told about the test. Some participants were told that men and women scored differently on the test; other participants were told that men and women scored equally well on the test they were about to take (in actuality, all participants were given the same test). When participants expected a gender difference in test scores, stereotype threat kicked in—female participants scored lower than male participants. However, when participants were told that the test did not have a gender bias, female participants did just as well as male participants. In other words, our test scores don’t just reflect our academic ability—they also reflect our expectations and the social context around us. When the female participants were placed under a condition of stereotype threat, their scores were lower—but this gender difference was not found when participants were not under threat. Impact of Stereotype Threat Research The research on stereotype complements research on microaggressions and bias in higher education, and it helps us better understand the experiences of marginalized groups. For example, Spencer and his colleagues suggest that repeated experiences with stereotype threat may, over time, cause women to dis-identify with math—in other words, women may choose to take classes in other majors in order to avoid the stereotype threat they experience in math classes. As a result, stereotype threat could potentially explain why some women choose not to pursue careers in STEM. Stereotype threat research has also had a significant impact on society—it has lead to educational interventions aimed at reducing stereotype threat, and Supreme Court cases have even mentioned stereotype threat. However, the topic of stereotype threat is not without criticism. In a 2017 interview with Radiolab, social psychologist Michael Inzlicht points out that researchers have not always been able to replicate the results of classic research studies on stereotype threat. Even though stereotype threat has been the topic of numerous research studies, psychologists are still conducting more research to determine exactly how stereotype threat affects us. Self-Affirmation: Mitigating the Effects of Stereotype Threat Although stereotype threat can have negative consequences for individuals, researchers have found that psychological interventions can mitigate some of the effects of stereotype threat. In particular, an intervention known as a self-affirmation is one way of reducing these effects. Self-affirmation is based on the idea that we all want to see ourselves as good, capable, and ethical people, and we feel the need to respond in some way when we feel our self-image is threatened. However, an important lesson in self-affirmation theory is that people don’t need to respond to a threat directly—instead, reminding ourselves of something else we’re doing well can make us less threatened. For example, if you are worried about a poor grade on a test, you might remind yourself of other things that are important to you—perhaps your favorite hobbies, your close friends, or your love of particular books and music. After reminding yourself about these other things that are also important to you, the poor test grade is no longer quite as stressful. In research studies, psychologists often have participants engage in self-affirmation by having them think about a personal value that is important and meaningful to them. In a set of two studies, middle school students were asked to complete an exercise at the beginning of the school year where they wrote about values. The crucial variable was that students in the self-affirmation group wrote about one or more values that they had previously identified as being personally relevant and important for them. Participants in the comparison group wrote about one or more values that they had identified as being relatively unimportant (participants wrote about why someone else might care about these values). The researchers found that black students who completed the self-affirmation tasks ended up getting better grades than black students who completed the control tasks. Moreover, the self-affirmation intervention was able to decrease the gap between the grades of black and white students. In a 2010 study, researchers also found that self-affirmation was able to reduce the achievement gap between men and women in a college physics course. In the study, women who wrote about a value that was important to them tended to receive higher grades, compared to women who had written about a value that was relatively unimportant to them. In other words, self-affirmation may be able to reduce the effects of stereotype threat on test performance. Sources Adler, Simon and Amanda Aronczyk, producers. â€Å"Stereothreat,† Radiolab, WNYC Studios, New York, 23 Nov. 2017. https://www.wnycstudios.org/story/stereothreatCohen, Geoffrey L., et al. â€Å"Reducing the Racial Achievement Gap: A Social-Psychological Intervention.†Ã‚  Science,  313.5791, 2006, pp. 1307-1310. http://science.sciencemag.org/content/313/5791/1307Miyake, Akira, et al. â€Å"Reducing the Gender Achievement Gap in College Science: A Classroom Study of Values Affirmation.†Ã‚  Science,  330.6008, 2010, pp.1234-1237. http://science.sciencemag.org/content/330/6008/1234Spencer, Steven J., Claude M. Steele, and Diane M. Quinn. â€Å"Stereotype Threat and Womens Math Performance.  Journal of Experimental Social Psychology,  35.1, 1999, pp. 4-28. https://www.sciencedirect.com/science/article/pii/S0022103198913737Steele, Claude M. â€Å"The Psychology of Self-Affirmation: Sustaining the Integrity of the Self.†Ã‚  Advances in Experimental Social Psychology, vol. 21, Academic Press, 1988, pp. 261-302. https://www.sciencedirect.com/science/article/pii/S0065260108602294Steele, Claude M., and Joshua Aronson. â€Å"Stereotype Threat and the Intellectual Test Performance of African Americans.†Ã‚  Journal of Personality and Social Psychology,  69.5, 1995, pp. 797-811. https://psycnet.apa.org/record/1996-12938-001â€Å"Stereotype Threat Widens Achievement Gap.† American Psychological Association, 15 Jul. 2006, https://www.apa.org/research/action/stereotype.aspx

Kudler Fine Foods Marketing Plan - 937 Words

Introduction Market research is all about collecting information to give Kudler Fine Foods insight into the minds of their consumers, understanding what they want and knowing what they think about Kudler’s products, service, and competitors. Having a marketing plan helps gain an understanding of the market trends and trends of the food and beverage industry. Kudler Fine Foods marketing plan will include strategic additions, such as the distribution plan and pricing and positioning of Kudler, as well as the level of information technology they use, a details the profitable way Kudler will be able to target a broader audience. Distribution Plan Kudler will have a distribution plan in place with details on how customers will purchase their products. This will be systematically determined, as it is a major concern for decision-makers, on certain aspects such as, which products are available to Kudler’s consumers in what quantity are they available, for what amount, at what location, and at what time. This strategy will be implemented to make sure that Kudler’s is meeting any anticipated demand. Kudler Fine Foods Inventory The inventory of Kudler’s distribution plan will be entered into manufacturing requirements for estimating input flows and production schedules. As a retailer, Kudler will also link producers to other distributors, buyers, or wholesalers; creating great business relations. These relationships are all crucial with the flow of how their consumers willShow MoreRelatedCommunication Plan Kudler Fine Foods1312 Words   |  6 PagesCommunication Plan Team B University of Phoenix MKT/571: Marketing Kudler Fine Foods has decided to launch a product in both domestic and international markets. 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Kudler has some of the best imported and domestic food, wine, and spirits. Their selection is comprised of fresh produce, bakery and pastries, condiments and packaged foods, fresh food and meat, and specialty dairy products and cheeses. Kudler’s mission is basically to provide the customers with the finestRead MoreMarketing Focus for Kudler Fine Foods1356 Words   |  6 PagesMarketing Focus for Kudler Fine Foods Virtual Organization Roslyn Broadhurst BSA/502 July 26, 2010 David Moore Abstract Kudler Fine Foods currently has three locations-La Jolla, Del Mar, and Encinitas-throughout San Diego, with a fourth location possibly in the company’s near future. The company maintains several systems including strategic plan, legal, finance and accounting, sales and marketing, human resources, and operations. This paper is an analysis of the marketing system for KudlerRead MoreKudler Fine Foods1298 Words   |  6 PagesMarketing Kudler Fine Foods Angela Bush MKT/421 February 19, 2012 Judith C. Allen Marketing Kudler Fine Foods Kudler fine foods is a store that markets fine foods but needs to bring some focus toward expanding their goods to the public. Improving their business operations will increase store efficiencies and the demand of its customers at a higher volume of purchases. The growth of this organization is significant and growth will coincide with strategic marketing that will expand

The Gilded Age Of The Nineteenth Century And The...

Two prominent eras of American History were the Gilded Age at the end of the nineteenth century and the succeeding period, the Progressive Era. The Gilded Age, also know as the Second Industrial Revolution, was a peak of high economic development with the rise of technological advancements in a free market environment, meaning that the economy was driven by self-interest instead of government authority. Besides its economic growth, the Gilded Age handle changes in social divisions. After the abolishment of slavery, the class system had three major groups: robber barons, middle class, and working class. The following time period, the Progressive Era from around 1890-1920, was a time span full of reforms. These reforms allowed government to get involved in business regulations. The progressive era was driven by the middle class as they saw unfavorable outcomes from the other two social divisions. The upper ten were too corrupt and the working class was too immoral. This resulted in a m ovement of economic, political, social, and moral transformations accomplished by the government. The Gilded Age of negative liberty transitioned into positive liberty at the start of the Progressive movement since free market economies included problems of restrictive competition, contracted labor, and social inequality. First, negative liberty shifted to positive liberty, because free markets failed to regulate competition. Through negative liberty one believes that freedom comes when there isShow MoreRelated`` The Jungle `` : Social Injustice And Unfair Treatment Of The Working Class1128 Words   |  5 PagesThe Gilded Age in American History was a time period of great controversy. Those in wealthier classes believed the changes that had been made socially were for the best. For instance, Andrew Carnegie in the The Gospel of Wealth sees the industrialization in a positive light. 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Scam free essay sample

The Ketan Parekh Scam The Crash that Shook the Nation The 176-point1 Sensex2 crash on March 1, 2001 came as a major shock for the Government of India, the stock markets and the investors alike. More so, as the Union budget tabled a day earlier had been acclaimed for its growth initiatives and had prompted a 177-point increase in the Sensex. This sudden crash in the stock markets prompted the Securities Exchange Board of India (SEBI) to launch immediate investigations into the volatility of stock markets. SEBI also decided to inspect the books of several brokers who were suspected of triggering the crash. Meanwhile, the Reserve Bank of India (RBI) ordered some banks to furnish data related to their capital market exposure. This was after media reports appeared regarding a private sector bank3 having exceeded its prudential norms of capital exposure, thereby contributing to the stock market volatility. The panic run on the bourses continued and the Bombay Stock Exchange (BSE) President Anand Rathis (Rathi) resignation added to the downfall. Rathi had to resign following allegations that he had used some privileged information, which contributed to the crash. The scam shook the investors confidence in the overall functioning of the stock markets. By the end of March 2001, at least eight people were reported to have committed suicide and hundreds of investors were driven to the brink of bankruptcy. 1 A change of Re. 1 in the price of a share when one speaks of a share rising or falling by so many points. In stock market indices, however, a point is one unit of the composite weighted average on market capitalization of rupee values. 2 A stock market index indicating weighted average of 30 scripts, also known as the BSE Sensitive Index. The daily closing figure of this index broadly reflects the performance of the capital markets. 3 It was alleged that Global Trust Bank exceeded its Capital market exposure. The scam opened up the debate over banks funding capital market operations and lending funds against collateral security. It also raised questions about the validity of dual control of co-operative banks4. (Analysts pointed out that RBI was inspecting the accounts once in two years, which created ample scope for violation of rules. ) The first arrest in the scam was of the noted bull5, Ketan Parekh (KP), on March 30, 2001, by the Central Bureau of Investigation (CBI). Soon, reports abounded as to how KP had single handedly caused one of the biggest scams in the history of Indian financial markets. He was charged with defrauding Bank of India (BoI) of about $30 million among other charges. KPs arrest was followed by yet another panic run on the bourses and the Sensex fell by 147 points. By this time, the scam had become the talk of the nation, with intensive media coverage and unprecedented public outcry. The Man Who Triggered the Crash KP was a chartered accountant by profession and used to manage a family business, NH Securities started by his father. Known for maintaining a low profile, KPs only dubious claim to fame was in 1992, when he was accused in the stock exchange scam6. He was known as the Bombay Bull and had connections with 4 Co-operative banks are under the dual control of RBI and the Registrar of Co-operative Societies. The RBI regulates banking functions while the registrar looks after the managerial and administrative functions. 5 An investor who expects share prices to go up and hence buys them. 6 When the interest rates were freed in mid-1989, it made the price of both bonds and money more volatile, and increased the link between the securities and money markets. With price volatility and increased volumes, securities broking became a profitable activity. The rising volumes were funded by banks through bank receipts (BR is a document issued by a bank acknowledging that it has sold certain government securities to a party and received payment). The scam came to light when RBI asked the SBI to show the bank receipts, and it was found that Rs 6. 22 billion not been reconciled and was untraceable. The money involved in the scam was eventually ascertained to be well over Rs 30 billion. ovie stars, politicians and even leading international entrepreneurs like Australian media tycoon Kerry Packer, who partnered KP in KPV Ventures, a $250 million venture capital fund that invested mainly in new economy companies. Over the years, KP built a network of companies, mainly in Mumbai, involved in stock market operations. The rise of ICE (Information, Communications, and Entertainment) stocks all over the world in early 1999 led to a rise of the Indian stoc k markets as well. The dotcom boom7 contributed to the Bull Run8 led by an upward trend in the NASDAQ9. The companies in which KP held stakes included Amitabh Bachchan Corporation Limited (ABCL), Mukta Arts, Tips and Pritish Nandy Communications. He also had stakes in HFCL, Global Telesystems (Global), Zee Telefilms, Crest Communications, and PentaMedia Graphics KP selected these companies for investment with help from his research team, which listed high growth companies with a small capital base. According to media reports, KP took advantage of low liquidity in these stocks, which eventually came to be known as the K-10 stocks. The shares were held through KPs company, Triumph International. In July 1999, he held around 1. million shares in Global. KP controlled around 16% of Globals floating stock, 25% of Aftek Infosys, and 15% each in Zee and HFCL. The buoyant stock markets from January to July 1999 helped the K-10 stocks increase in value substantially 7 The e-commerce revolution had led to a massive upsurge in the value of technology stocks across the globe, especially Internet v entures. This came to be known as the dotcom boom. 8 A bull run is an uptrend in the stock markets caused by the rise in the price of shares, sustained by buying pressure of actual investors or news of favorable economic growth, decontrol and political developments. The National Association of Securities Dealers Automated Quotation System (NASDAQ) is a US-based stock exchange, which comprises largely of technology stocks. Started in 1971, NASDAQ is the first screen-based, floor less trading system and the second largest stock market in the US. (Refer Exhibit I for BSE Index movements). HFCL soared by 57% while Global increased by 200%. As a result, brokers and fund managers started investing heavily in K-10 stocks. Mutual funds like Alliance Capital, ICICI Prudential Fund and UTI also invested in K-10 stocks, and saw their net asset value soaring. By January 2000, K-10 stocks regularly featured in the top five traded stocks in the exchanges (Refer Exhibit II for the price movements of K-10 stocks). HFCLs traded volumes shot up from 80,000 to 1,047,000 shares. Globals total traded value in the Sensex was Rs 51. 8 billion10. As such huge amounts of money were being pumped into the markets, it became tough for KP to control the movements of the scrips. Also, it was reported that the volumes got too big for him to handle. Analysts and regulators wondered how KP had managed to buy such large stakes. The Factors that Helped the Man According to market sources, though KP was a successful broker, he did not have the money to buy large stakes. According to a report11, 12 lakh shares of Global in July 1999 would have cost KP around Rs 200 million. The stake in Aftek Infosys would have cost him Rs 50 million, while the Zee and HFCL stakes would have cost Rs 250 million each. Analysts claimed that KP borrowed from various companies and banks for this purpose. His financing methods were fairly simple. He bought shares when they were trading at low prices and saw the prices go up in the bull market while continuously trading. When the price was high enough, he 10 11 In September 2002, Rs 48 equalled 1 US $. Businessworld, 16 April, 2001. pledged the shares with banks as collateral for funds. He also borrowed from companies like HFCL. This could not have been possible out without the involvement of banks. A small Ahmedabad-based bank, Madhavapura Mercantile Cooperative Bank (MMCB) was KPs main ally in the scam. KP and his associates started tapping the MMCB for funds in early 2000. In December 2000, when KP faced liquidity problems in settlements he used MMCB in two different ways. First was the pay order12 route, wherein KP issued cheques drawn on BoI to MMCB, against which MMCB issued pay orders. The pay orders were discounted at BoI. It was alleged that MMCB issued funds to KP without proper collateral security and even crossed its capital market exposure limits. As per a RBI inspection report, MMCBs loans to stock markets were around Rs 10 billion of which over Rs 8 billion were lent to KP and his firms. The second route was borrowing from a MMCB branch at Mandvi (Mumbai), where different companies owned by KP and his associates had accounts. KP used around 16 such accounts, either directly or through other broker firms, to obtain funds. Apart from direct borrowings by KP-owned finance companies, a few brokers were also believed to have taken loans on his behalf. It was alleged that Madhur Capital, a company run by Vinit Parikh, the son of MMCB Chairman Ramesh Parikh, had acted on behalf of KP to borrow funds. KP reportedly used his BoI accounts to discount 248 pay orders worth about Rs 24 billion between January and March 2001. BoIs losses eventually amounted to well above Rs 1. billion. 12 A bank issues a pay order after it is clear that the customers account has sufficient funds. The MMCB pay order issue hit several public sector banks very hard. These included big names such as the State Bank of India, Bank of India and the Punjab National Bank, all of whom lost huge amounts in the scam. It was also alleged that Global Trust Bank (GTB) issued loans to KP and its exposure to the capital markets was above the prescribed limits. According to media reports, KP and his associates held around 4-10% stake in the bank. There were also allegations that KP, with the support of GTBs former CMD Ramesh Gelli, rigged the prices of the GTB scrip for a favorable swap ratio13 before its proposed merger with UTI Bank. KPs modus operandi of raising funds by offering shares as collateral security to the banks worked well as long as the share prices were rising, but it reversed when the markets started crashing in March 2000. The crash, which was led by a fall in the NASDAQ, saw the K-10 stocks also declining. KP was asked to either pledge more shares as collateral or return some of the borrowed money. In either case, it put pressure on his financials. By April 2000, mutual funds substantially reduced their exposure in the K-10 stocks. In the next two months, while the Sensex declined by 23% and the NASDAQ by 35. 9%, the K-10 stocks declined by an alarming 67%. However, with improvements in the global technology stock markets, the K-10 stocks began picking up again in May 2000. HFCL nearly doubled from Rs 790 to Rs 1,353 by July 2000, while Global shot up to Rs 1,153. Aftek Infosys was also trading at above Rs 1000. In December 2000, the NASDAQ crashed again and technology stocks took the hardest beating ever in the US. Led by doubts regarding the future of technology stocks, prices started falling across the globe and mutual funds and brokers began 13 The merger was later cancelled. selling them. KP began to have liquidity problems and lost a lot of money during that period. It was alleged that bear hammering of KPs stocks eventually led to payment problems in the markets. The Calcutta Stock Exchanges (CSE) payment crisis was one of the biggest setbacks for KP. The CSE was critical for KPs operation due to three reasons. One, the lack of regulations and surveillance on the bourse allowed a highly illegal and volatile badla business (Refer Exhibit III). Two, the exchange had the third-highest volumes in the country after NSE and BSE. Three, CSE helped KP to cover his operations from his rivals in Mumbai. Brokers at CSE used to buy shares at KPs behest. Though officially the scrips were in the brokers names, unofficially KP held them. KP used to cover any losses that occurred due to price shortfall of the scrips and paid a 2. 5% weekly interest to the brokers. By February 2001, the scrips held by KPs brokers at CSE were reduced to an estimated Rs 6-7 billion from their initial worth of Rs 12 billion. The situation worsened as KPs badla payments of Rs 5-6 billion were not honored on time for the settlement and about 70 CSE brokers, including the top three brokers of the CSE (Dinesh Singhania, Sanjay Khemani and Ashok Podar) defaulted on their payments. By mid-March, the value of stocks held by CSE brokers went down further to around Rs 2. 5-3 billion. The CSE brokers started pressurizing KP for payments. KP again turned to MMCB to get loans. The outflow of funds from MMCB had increased considerably from January 2001. Also, while the earlier loans to KP were against proper collateral and with adequate documentation, it was alleged that this time KP was allowed to borrow without any security. By now, SEBI was implementing several measures to control the damage. An additional 10% deposit margin was imposed on outstanding net sales in the stock markets. Also, the limit for application of the additional volatility margins was lowered from 80% to 60%. To revive the markets, SEBI imposed restriction on short sales14 and ordered that the sale of shares had to be followed by deliveries. It suspended all the broker member directors of BSEs governing board. SEBI also banned trading by all stock exchange presidents, vice-presidents and treasurers. A historical decision to ban the badla system in the country was taken, effective from July 2001, and a rolling settlement system for 200 Group A shares 15 was introduced on the BSE. The System that Bred these Factors The small investors who lost their lifes savings felt that all parties in the functioning of the market were responsible for the scams. They opined that the broker-banker-promoter nexus, which was deemed to have the cceptance of the SEBI itself, was the main reason for the scams in the Indian stock markets. SEBIs measures were widely criticized as being reactive rather than proactive. The market regulator was blamed for being lax in handling the issue of unusual price movement and tremendous volatility in certain shares over an 18-month period prior to February 2001. Analysts also opined that SEBIs market intell igence was 14 Selling of shares without physically possessing them. Usually the speculator promises to deliver the shares in future anticipating a fall in prices. If the price falls, he buys the shares at the lower rate, and makes a profit on the difference. If prices rise, he buys the shares at the higher price, and sustains a loss. 15 Group A shares are otherwise known as specified shares. These companies have the best fundamentals and growth prospects. The trading interest in these shares is high and certain exchanges also offer the carry-forward facility, which enables speculative trading of these shares. Because of the high trading volumes, the spreads are low and it is possible to easily enter and exit from these shares. ery poor. Media reports commented that KPs arrest was also not due to the SEBIs timely action but the result of complaints by BoI. A market watcher said16 When prices moved up, SEBI watched these as normal market movements. It ignored the large positions built up by some operators. Worse, it asked no questions at all. It had to investigate these things, not as a regulatory body, but as deep-probing agency that could coor dinate with other agencies. Who will bear the loss its inefficiency has caused? An equally crucial question was raised by media regarding SEBIs ignorance of the existence of an unofficial market at the CSE. Interestingly enough, there were reports that the arrest was motivated by the governments efforts to diffuse the Tehelka controversy17. Many exchanges were not happy with the decision of banning the badla system as they felt it would rig the liquidity in the market. Analysts who opposed the ban argued that the ban on badla without a suitable alternative for all the scrips, which were being moved to rolling settlement, would rig the volatility in the markets. They argued that the lack of finances for all players in the market would enable the few persons who were able to get funds from the banking system including cooperative banks or promoters to have an undue influence on the markets. 16 17 Business India, April 16-29, 2001. In March 2001, a website, Tehelka. com exposed an alleged corruption racket in defense deals. Many leading politicians, bureaucrats and army personnel were caught on camera indulging in unethical practices. It led to a huge uproar in the media and public, eventually threatening the governments stability. It was alleged that KPs arrest was a ploy by vested interests to divert the nations attention off the Tehelka controversy. The People that the System Duped KP was released on bail in May 2001. The duped investors could do nothing knowing that the legal proceedings would drag on, perhaps for years. Observers opined that in spite of the corrective measures that were implemented, the KP scam had set back the Indian economy by at least a year. Reacting to the scam, all KP had to say was, I made mistakes. It was widely believed that more than a fraud, KP was an example of the rot that was within the Indian financial and regulatory systems. Analysts commented that if the regulatory authorities had been alert, the huge erosion in values could have been avoided or at least controlled. After all, Rs 2000 billion is definitely not a small amount – even for a whole nation. Questions for Discussion 1. Study the developments that led to the Ketan Parekh scam and comment on SEBIs actions after the scam was unearthed. 2. Comment on SEBIs decision to ban badla. What effect would this move have on the stock markets? 3. The Ketan Parekh scam was an example of the inherently weak financial and regulatory set up in India. Discuss the above statement, giving reasons to justify your stand.