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.
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Post de-merger, Octant Interactive shareholders still await listing of spun-off business
Online travel insurance plans for individual travel, corporate travel, student travel, family travel, and senior citizen travel
BerkshireInsurance.com announced the launch of a new suite of online travel insurance products. Through the online platform, the company aims to provide unique travel insurance solutions from Bajaj Allainz General Insurance at cost effective rates to domestic travellers. With this offering, BerkshireInsurance.com will give its customers the ease and convenience of their technology platform to ensure hassle-free insurance for travel.
Travel insurance plans can be purchased for individual travel, corporate travel, student travel, family travel, and senior citizen travel. Within each category, there are multiple facilities offered with multiple coverage combinations. The policies can be purchased online on the BerkshireInsurance.com website and are issued instantly with no documentation through a simple and intuitive online process.
Key Features of the Travel Insurance Solutions include: (a) Customised plans for each category – individual travel, student travel, corporate travel, family travel and senior citizen travel (b) Host of situations covered includes accident or medical emergencies (including evacuation and repatriation), baggage loss or delay, hijack, travel delay or curtailment, and many more (c) Cost effective pricing.
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.
The ‘All India Investor Yatra’ employs a unique and innovative infotainment format to build investor awareness and impart knowledge, critical for making informed investment decisions through a theatre performance. The performances will be followed by interactions between the investors and a panel of experts who will address the queries of the audience.
The content of the skits will focus on areas like Do’s and Don’ts of informed investing, banking, risk analysis, advisory, inflation and selecting the right investing tool among others. The objective of the skits is to educate the investor about equities & mutual funds versus other asset classes, ETFs, risk appetite, mutual funds & SIP’s and the advantages of planned investments.
BloombergUTV launched a series of programmes like ‘Fightback’, a show that has since helped hundreds of Indians break out of their financial woes. ‘Exposed’ has brought to light some of the most startling revelations out there. ‘Market Guru’–an on-air show gives viewers Blunt. And Sharp opinions of the most authoritative experts in India and around the world. BloombergUTV also instituted ‘The Financial Leadership Awards’ to recognize and bring forward the most promising talent in the industry. The All India Investor Yatra launches on BloombergUTV in November 2011.