Investor Issues
BSE delays Five X listing, investors’ capital still stuck in company

The demerged company with 80% of investor capital is awaiting listing approval since the past 10 months from BSE; bourse remains tight-lipped and refuses to hear small investors’ complaints

Market regulator Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE) seem to be least concerned about investors’ interest. Unreasonable delay in giving listing approval for a demerged company and ignoring investors’ complaints suggest that the regulator—and the bourse—both are adopting a hands-off approach. The question is—with whom does the buck stop?

Take the case of Five X Finance and Investment Ltd, a demerged arm of Octant Industries, which is yet to be listed after 10 months, holding up money of retail investors. Moneylife has reported on this issue (See: Five X, a demerged arm of Octant Industries, leaves investors in limbo ). A whopping 80% of investor capital is stuck in this unlisted company. Both the stock exchange and the company are not listening to the voice of the investors.  

Octant Interactive Technologies Ltd demerged its financial division business and vested in Five X Finance and Investment Ltd, with 80% of its capital as per the
demerger agreement, on 7 December 2010. However, the company has still not received approval from the BSE.

After eight months, market regulator SEBI had granted listing approval to the company. But this time, it is the BSE which is yet to give its nod. Meanwhile, investors have nowhere to go as BSE is ignoring their complaints; the company says it is still “awaiting approval” from the bourse.

“Though there is an investor grievance cell at BSE, it is of no use. Nobody picks up the phone and (BSE) never replies to emails. What is the use of an investor grievance cell at BSE?” says an investor on Moneylife’s website.  

Ninad Avasare, who had invested in Five X, said, “Does it really take so much time for getting permission for listing from the BSE? Or is the company deliberately causing this delay? Many gullible investors have been trapped by the company and they are eagerly waiting for their money.”

Interestingly, Octant Industries, which got only 20% capital, was successfully listed on 7 February 2011. We asked BSE for their stand, but it refused to comment. For clarifying matters, an e-mail query was send to SEBI too, but no answer has been received till the time of publishing this story. Meanwhile, the investors can only hope that some solution emerges in the near future.

You may also want to read:

Post de-merger, Octant Interactive shareholders still await listing of spun-off business

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COMMENTS

HMT

5 years ago

21 months wait for 80 percent. 2 months wait for 20 percent

HMT

5 years ago

When FiveX listing ? Long wait.

HMT

5 years ago

Any Update ?

Habibul Hassan

5 years ago

Any update about Five X listing? we are Waiting for listing of five x.Please confirm the listing Date.

Sunil Dutt Sharma

5 years ago

Any update about Five X listing? we are Waiting for listing of five x.Please confirm the listing Date.

REPLY

Ninad

In Reply to Sunil Dutt Sharma 5 years ago

No update, Not sure about whether company intentionally delaying listing or they really not want to list. And most pathetic thing is investors are reluctant. Those who were following about it continuously back 3-4 at moneycontrol and other communities are also disappeared due to lack response.

OMPRAKASH SHARMA

5 years ago

DEAR SIR

I AM WAITING FOR LISTING OF FIVE X FINANCE LTD. AS EARLY AS POSSIBLE.

REGARDS
OM PRAKASH SHARMA

REPLY

Ninad

In Reply to OMPRAKASH SHARMA 5 years ago

Your purpose will not be served only by waiting. Action is required.

sathya cumaran

5 years ago

iifl had cheated me for bse nse sebi are party to it exposing in wikileaks your suggestion already i have one lakhs investors under same case

REPLY

ninad

In Reply to sathya cumaran 5 years ago

Do you mean there are in total 1 lac investors along with you and all of you are united to pull a case against cheaters SEBI, BSE, NSE etc.. Then it would be great. My major wish is that all these cheat cum fraud institution should come under RTI Act.

Om Prakash Sharma

5 years ago

Any update about Five X listing????? Listing is being delayed intentionally by not submitting necessary documents at BSE....It has been really long time 13 months and our all money stuck...How ruthless is this person G.K.Agarwal????? Wish same thing would happen with him in future.

OM PRAKASH SHARMA

6 years ago

PLEASE CONFIRM LISTING DATE OF FIVE X FINANCE LTD

REPLY

Ramesh Thakur

In Reply to OM PRAKASH SHARMA 6 years ago

Better ask BSE about same..or ask directly to g k agarwal..some sort of manipulation between them

Ramesh Thakur

6 years ago

It seems like BSE should have nexus with promoters so that listing is being delayed intentionally. For getting permission from BSE it is waiting for 2 months (as on Nov 2) is beyond my knowledge.
So dont invest into any stock where business restructuring like merger , demerger etc going to be happened. Investors never gets any benefit from it controversely their fund gets locked or lost.

sathya cumaran

6 years ago

i have given to IIFL that i need only physical formof all the proof for which i have given it in writing during 2005 itself tilld ate the broking had not implemented and they have trading in account without my knowledge inspite i giving my letter of discontentment for margin funding till date they have not removed and they have been trading more than Rs 5000 crores through my account for which nse bse sebi are party to it till date these institution have never bothered to question them and they say investor protection fund its not so they are highly corrupt now as international media personality i am going to publish all the proof in wikileaks site to prove that nse bse sebi are high corrupt and alsoprove present FM and previous Fm are highly corrupt would be exposed

REPLY

Ramesh Thakur

In Reply to sathya cumaran 6 years ago

Sathya Cumaran you said that you are going to publish all proofs about misconduct at wikileaks , do it as early as possible. These institutes which are formed to protect investors are in actual not protecting but looting peoples. They are doing daylight and white collar robbery. You should expose them so entire world will know how corrupt our market institutions are. About BSE I am 100% sure that it is highly corrupt and having nexus with fraudulent prom others and manipulation happens easily at BSE but now I also suspect that SEBI is also in same boat otherwise SEBI cant see things that entire world see easily.

vikas batra

6 years ago

its just ur talking about 10 months, we have been waiting for last 7 years in nath seeds and they demerged the company into three companies and only one has got listed and on asking for past years balance sheet or for knowing its equity capital both promoters and sebi are mum on the issue

REPLY

Ramesh Thakur

In Reply to vikas batra 6 years ago

I think SEBI is also strongly corrupt. I really wonder why there is need of SEBI if they are not doing their job. At the moment there are many fraud companies in Indian Stock Market and being operated by same set of fraudulent promoters. I wonder how SEBI cannot notice things which investors and other common peoples can notice easily or they are intentionally ignoring it. About BSE dont say a word they are highly corrupt institution therefore why they are opposing RTI Act.

sathya cumaran

6 years ago

there had been rampant corruption in bse nse and sebi i have been cheated by IIFL for which i have proof till date these institution is just saying no proof this shows that there had been rampant corruiption

REPLY

Ramesh Thakur

In Reply to sathya cumaran 6 years ago

oh my god...if it is true and there is corruption then promoters can easily cheat investors by paying of bribe to BSE authorities. It is not good for small investors. For better effect it is really necessary that BSE , NSE should be under RTI so that it would limit corruption within these institution.

ninad avasare

6 years ago

Therefore why there is a high need that BSE should be covered by RTI Act 2005 , As we have noticed that though there is investor grievance cell at BSE but it is for show purpose only. They never responds to any query of retailers.
So it is always better that BSE and NSE should be covered by RTI as soon as possible..

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NSE & BloombergUTV launch All India Investor Yatra

All India Investor Yatra is a unique initiative to accelerate financial literacy across India in 25 cities

BloombergUTV and National Stock Exchange of India today launched the ‘All India Investor Yatra’, a unique initiative to drive awareness and education about healthier investment practices. The All India Investor Yatra starts with Surat on 30th October and travels across 25 towns and cities over the next 6 to 8 months.

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COMMENTS

Anup Shah

5 years ago

Good one! So this blog will make us realize that stock market is not a gamble but can work in a way one wants. Only what you require is a proper study and a deep analysis.

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