Investor Issues
Five X, a demerged arm of Octant Industries, leaves investors in limbo

The company was demerged 10 months back though it is yet to be listed; SEBI approved the listing after eight months but now BSE is yet to give its nod

The dwindling population of retail investors in India is time and again made to suffer due to wrongdoing by companies. Often, buybacks, delisting & demergers are announced, resulting in a sudden spurt in the share price and then the company defers from actually going through with the announcement, leaving small-time investors mired in losses.

Take the case of Five X Finance and Investment Limited, a demerged arm of Octant Industries, (formerly listed as ‘Octant Interactive’ on the BSE, or Bombay Stock Exchange), which has not yet been listed for more than 10 months now.

Octant Interactive Technologies Ltd demerged its financial division business and vested in Five X Finance and Investment Ltd, with a whopping 80% of its capital as per the demerger agreement, on 7 December 2010. However, the company has still not received approval from the BSE. This has left retail investors in the lurch with a majority of their capital stuck in the unlisted firm.

Moneylife had earlier reported on how the delay in listing of Five X, due to delay in approval by the Securities and Exchange Board of India (SEBI), had left investors trapped in the unlisted company. (See: Post de-merger, Octant Interactive shareholders still await listing of spun-off business ).

Now after eight months, the market regulator has given listing approval to the company. But this time it is the BSE which is yet to give its nod.

In a filing with the BSE, dated 2 September 2011, Octant Industries said,
“The demerged Undertaking/Resulting Company ‘Five X Finance and Investment Ltd’ has revived the approval under 19(2) (b) SC (R) Rules, 1957 from SEBI for listing the company with stock exchanges.”

It added, “Post the approval from SEBI, the company is under the process of obtaining listing approvals with the concerned exchange (BSE).”

Here again, retail investors are at the receiving end of the deal. “Now they are waiting for permission from BSE, but in the past 45 days there is no update or sign from the company regarding permission from the BSE. And we (investors) don’t have any other way as the company is not responding to email from investors as usual, and there is no other way we can contact them and get an update about the listing procedure. It is really a horrible experience as our entire money is stuck in Five X as the ratio was 80% to 20%,” complained an investor who had invested in Five X, who spoke to Moneylife preferring anonymity.

As per the Scheme of Agreement, post the demerger, Octant Interactive Technologies Ltd’s shareholders got 4 shares in Five X Finance and Investment for every 5 shares in Octant Interactive which they held. For every 5 shares of Octant Interactive, the equity holder was to receive 1 share of Octant Industries, each share with face value of Rs10. In other words, the shareholders of Octant Interactive were given 80% of their current holding in Five X Finance and 20% in Octant Industries. This effectively reduced shareholder stake in Octant Industries.

Industry experts say that investors are suffering with the majority of their capital stuck in unlisted firms solely due to delay in SEBI and stock exchange approval.

Interestingly, Octant Industries, which got only 20% capital, was successfully listed on 7 February 2011.   

Five X says that it is awaiting BSE’s approval. When asked about the investors’ money, a company official told Moneylife, “We can’t do anything unless we get listing approval from the BSE.”

An email query to BSE did not solicit any reply till the time of publishing this story.

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COMMENTS

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.

REPLY

Om Prakash

In Reply to Om Prakash Sharma 5 years ago

Now it has been 13 months and even 4 months later since getting permission from SEBI they have not completed formalities with to list their stock on BSE. Ruthless and shameless peoples (G.K.Agarwal)

Ramesh Thakur

6 years ago

Other Investors whoever have update about Five X lisitng status please inform us.
http://www.surajconsulting.com

Ramesh Thakur

6 years ago

Dear Jignesh,
Everyone here is waiting for Five X listing. Please write a letter to BSE regarding permission status for Five X. IT has been 11 months long waiting since delisting. Entire money is stuck into Five X.

jignesh

6 years ago

I JUST REQUEST TO OCTANT.
PLEASE DO SOMTHING ABOUT FIVEX5 . AND I ALSO REQUEST TO BSE EX. PLS DO SOMTHING ABOUT FIVE X5 . I - WE AND ALL INDIA WAIT TO LISTING FIVEX5

Ninad Avasare

6 years ago

Does it really consume so much time for getting permission for listing from BSE. or he is making delay intentionally???

Ninad Avasare

6 years ago

Whatever these peoples did at moneycontrol to trap new investors prior to merger -demerger is a more horrible story. They had appointed some peoples to advertise this stock with hyper targets to lure peoples and attract them to buy this stock. Many gullible investors are trapped by them and they are eagerly waiting for their money back.

Ramesh Thakur

6 years ago

The way by which these peoples doing same frauds again and again under the name of business restructuring i.e pumping and dumping shares etc...I think these crooks are 100% sure that SEBI wont take any action against them. It seems like they have insider connection with BSE also. As in octant there are few incidents that promoters sold their holding for perticular period and they informed BSE after they have sold upto their target. Such incidents indicates insider connection of promoters with the employees at BSE. There are lot corrupt peoples at BSE. It is high need that BSE sghould come under RTI Act 2005.

raj

6 years ago

Octant was a MASSIVE 2000 percent pump and dump from 10 to 200 then dumped back to 10 again

all the other 5 companies whose registered offices are in E 109 Crystal Plaza New link Road Andheri have risen a minimum of 100 percent WITHOUT ANY FUNDAMNETALS
some are at lifetime highs

Aggarwal is also associated with ACCENTIA TECH SEE
see http://fraudex-2012.blogspot.com/2011/10...

by the way since aggarwal comes from a silver trading family HE MAY (i said may not is) be using accentia tech which he seems to be associated with too to launder money since IT companies provide perfect cover for such activities

Ramesh Thakur

6 years ago

hmm....really sad...Whatz SEBI is doing???????? ...how they allowed him 10-12 yrs free for doing such frauds again and again and trapping poor retailers.
Here in above case(i.e Five X Finance) the extent of damage to retailers is very big ....imagine their 80% wealth is disappeared overnight since 15 dec 2010. And morover to this trouble company is not responding to their emails. Why email ID [email protected] is being provided by company??? Also there is not any much detail available.

Raj

6 years ago

G.K. Agrawal of 40 years age is the main promoter of the company. He is a qualified Chartered Accountant. He belongs to a business family carrying on a Silver Jewellery business for last 30 years
SOURCE http://www.insight.religaretechnova.com/...

I think he also uses s the name Raj Kishore Aggarwal

Mr.Raj Kishore Agrawal Director 305, Krishna- A, Vishal Nagar,Marve Road, Malad (W) Mumbai- 64 Occupation: Business

For links between the follwoing 5 comapnies First Object Concurrent Infra Octant Industries Accentia Technologies and Socrus BioSciences

see http://fraudex-2012.blogspot.com/2011/10...

Rajesh

6 years ago

This company is in the grip of a dubious C A caled Giriraj Kishore Aggarwal
who is /has been associated with atleast 10-12 companies
currently heis assocciated with 6-8 companies FIve X is just one of these

There are 6 LISTED companies where Aggarwal is a promoter which have the same registeread address
E 109 Crystal Plaza New link Road Andheri
these are rockon Finatech Tilak Finance Banas Finace axon Infotech and Shreenath Commercial and finance
He was also the ex promoter of Concurrent infra and Octant industries

Also involved is Firstcall Investment of VLVLShastri

Ninad Avasare

6 years ago

For getting permission from BSE only it is consuming that big time almost 45 days gone but they have not done any significant progress towards BSE listing, as Five X says they have sent listing request at BSE while other says they dont received any formal request from BSE. What is truth?

Ramesh Thakur

6 years ago

Moneylife do you got any response from BSE..Though there is investor grievance cell at BSE but it is not of any use they never picks up phones and never replies to emails what is use of investor grievance cell at BSE????? BSE should be covered by RTI for the welfare of the investors...

Ramesh Thakur

6 years ago

Well though Five X has told that " They have submitted listing request to BSE" . Some sources says that BSE has not received any request from them or they dont have submitted docs properly.

Dj

6 years ago

Pls. help investors by listing this share immediately. Our Hard earned money is stuck in this share.

RuPay, India’s first domestic real-time payment processing system, to be launched in March 2012

For the RuPay launch, the National Payments Corporation of India is waiting for PoS clearance to kick off the service which is set replace the processing systems of global majors like VISA and MasterCard

After much deliberations and hype over the RuPay card, the unique domestic card in India which is set to replace global real-time payment processing firms like VISA and MasterCard, the service will be commercially launched with full functionality by March 2012 by the National Payments Corporation of India (NPCI).

AP Hota, chief executive officer and managing director, NPCI, told Moneylife, “Currently RuPay cards are being issued with limited functions, they are usable only in ATMs and micro-ATMs (used by bank business correspondents). Once we get the clearance for PoS (point-of-sale) usage, which is expected to come about in March 2012, the card will be launched with full functionality.”

The RuPay initiative entails the setting up of a network switch, which acts as a payment gateway that connects all ATMs and PoS terminals.

An NCPI spokesperson said, “Once PoS acceptance and e-commerce infrastructure is ready, NPCI will go ahead for final approval for rolling out RuPay cards that would be accepted on all channels.”

Since June 2011, RuPay cards have been issued with limited functions, and only used as ATM and micro ATM cards. These cards are not used for other commercial purposes such as usage in departmental stores and shopping centres. Four banks have issued this card. “The RuPay cards issued by four banks are widely used in around 85,000 ATMs across the country. Co-operative banks such Gopinath Patil Parsik Janata Sahakari Bank, NKGSB Cooperative Bank and Kashi Gomti Samyut Gramin Bank (which is a regional rural bank or RRB), have issued RuPay for ATM usage, while Bank of India has issued (RuPay) for micro-ATMs for the purpose of the business correspondents of the bank,” added Mr Hota.

Currently, domestic banks have no option but to tie up with VISA or MasterCard for connectivity between cardholders, merchants and issuing banks, not just within the country, but across the globe in the absence of a domestic Indian payment processing system.

Every transaction done in India using a debit or credit card issued by a domestic bank is routed through network switches owned by VISA or MasterCard, and both entities are based outside the country. But now RuPay would eliminate the need for this connectivity outside India for domestic transactions.

NCPI plans to focus on urban co-operative banks and RRBs. “We plan to enter a market mainly consisting of urban co-operatives and RRBs since they don’t issue any cards at the moment, and there is no other player in that area,” said Mr Hota.

In 2009, the RBI (Reserve Bank of India) had asked the Indian Banks’ Association (IBA) to launch a not-for-profit company and design a rival card—then tentatively called ‘India Card’, which was to meet the requirements of domestic banks.

And finally, the RBI’s plan is materialising and RuPay will act like Union Pay of China, which is the domestic real-time payment processing system for Chinese banks.

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COMMENTS

Sonu

6 years ago

RBI seems to be making a mistake by depending on a public utility for such a crucial service. Let's face it - are any of us happy about the way government departments serve people. Scams have become a way of life in this country and this can also become embroiled like the UIDAI has now become a tug of war. Why fix what ain't broken?

REPLY

Malq

In Reply to Sonu 6 years ago

Well, if it is pure corruption, then the two competitors probably wrote the book on it. Anyways, RuPay will be in open competition with the others, so let the best provider win?

Jingo

6 years ago

Well... In these times where the government is facing one corruption story every day, I think this one will also come out of closet soon. Why are all ATM transactions in India routed through only one switch provided by FSS, and why is POS also going to be routed throught is questionable. Also questionable is whether we should be rejoicing at a government monopoly replacing a private competitive play where banks benefit from the international connectivity, and marketing muscle of two of the most powerful brands of the world. It should be a war on corruption in India and by extension on the usage of cash prevalent in the country.

REPLY

Malq

In Reply to Jingo 6 years ago

The answer to your question is that it is an open level playing field, and whoever is more efficient wins, marketing clout regardless. Good luck to the. Duo who have tried to make global duopoly and are already learning competion thanks to CUP.

Jingo

In Reply to Malq 6 years ago


Let me assure you that there is nothing competitive about RBI arm twisting banks to use NFS/FSS only for domestic transactions. If these organizations were corrupt, it wouldnt probably have cost a lot of money to get a diktat to RBI to stop pushing banks on this. Bank CEOs do not take it up with RBI for the fear of incurring wrath and not getting the desired new licenses. Payments for all banks in India is a small part of retail bankingand hence they dont bother. You would probably not be aware of the reconciliation issues banks grapple with due to NFS. NPCI brags about the push RBI is making to banks to issue Rupay cards or even bypass the established payment schemes altogether. Dont think thats open market.
Also dont think we in India need to follow China's lead. Though I would like to believe that our country would be much better of with a 2-3 party democracy rather than the ineffective one we are saddled with.

Malq

In Reply to Jingo 6 years ago

Jingo, many of us know the payment processing industry inside out, so what is your point? That India should roll over and play pet poodle to the duopoly of associations with their one world order charter from the Illuminati? The "established payment processing industry" has one objective, and that is to impose economic slavery on the rest of the world, what are you about when you bring in unrelated parameters? I think RuPay is th best thing to happen for Indians and the global rollout is what should be expedited.

malq

6 years ago

This is good news, and very overdue, hopefully taking India's economy out of the vice like grip that entities and associations like Visa, MC, AmEx have on the American and European economies. It is also suggested that some more care be taken on ensuring that the back end technologies are fully controlled in India, unlike in the case of CUP, where the American payment processing companies had muscled in (though the Chinese, after much effort, were able to remove them).

The importance of RuPay will be felt when more and more transactions start going through RuPay, Bravo, RBI, bravo NPCI - especially for resisting the pressures from within . . . and some of us know who they are.

Edelweiss Financial Q2 net profit falls 60% to Rs26.32 crore

Edelweiss Financial reported second-quarter consolidated net profit of Rs26.32 crore, 60% lower than the Rs66.10 crore in the same quarter of last year

Mumbai-based Edelweiss Financial Services Ltd has reported a lower consolidated net profit for the quarter ended 30 September 2011, due to significant slowdown in the capital markets and investments made in new businesses.

The company reported second-quarter consolidated net profit of Rs26.32 crore, 60% lower than the Rs66.10 crore in the same quarter of last year. During the same period, the company's total revenue, including other operating income, rose by 2% to Rs385.32 crore from Rs376.14 crore.

During the quarter, revenue from ‘Fee and Commission’ declined by 27% to Rs104.76 crore from Rs143.70 crore for Q2FY11, while revenue from 'Interest and Treasury' rose by 19% to Rs276.28 crore from Rs231.29 crore.

In the late afternoon, Edelweiss Financial was trading at around Rs24 per share on the Bombay Stock Exchange, 1.01% down from the previous close.

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