Investor Issues
Midas Touch Investor association says Rs1.50 lakh crore could be released from 4000+ suspended companies that SEBI plans to delist
Midas Touch Investors’ Association (Midas), a well-known investor organisation says that the market watchdog’s plan to delist 4,000 inactive companies, if implemented properly, could result in getting Rs1.50 lakh crore that is estimated to be stuck in these companies. These are companies whose trading has been suspended for over seven years and Midas Touch has been diligently perusing these cases over this period of time.
 
In a recent press conference, the Securities Exchange Board of India (SEBI) chairman UK Sinha had stated that many of the companies SEBI chief UK Sinha wants to delist are on regional stock exchanges, where there's no trading. SEBI is also targeting about 1,200 companies listed on the BSE and NSE that have been suspended for more than seven years.  The exit price to be paid to the shareholders appeared to be according to existing SEBI Act and Regulations. These issues were taken up by Midas through Public Interest Litigation (PIL) in the Delhi High Court.
 
Midas Touch PIL in the matter of 5,142 companies exclusively listed at 22 regional stock exchanges was dismissed by the Delhi High Court in December 2015. Aggrieved by the decision, Midas filed a Special Leave Petition in the Supreme Court. It is likely to come up for hearing after summer vacations.
 
Midas has prayed, among others, that companies be delisted as per the Securities Contracts (Regulation) Act and shareholders fundamental right to seek judicial process be restored, which has been illegally usurped by SEBI circulars. Midas had prayed that SEBI be directed to implement its circular of 2008 in letter and spirit and its order of delisting was anti-investors and illegal. This is by far the biggest PIL, in terms of companies, investors/shareholders and their money involved, in the history of securities market. 
 
The PIL seeks action against SEBI for failing to regulate BSE and NSE regarding monitoring of compliance by listed companies. Despite recommendations from the Sahoo Committee, the market regulator has so far failed to take action against 2,048 companies and its promoters and directors.
 
According to the PIL, over the years, over Rs58,000 crore are blocked due to suspension of 1,450 companies by BSE and NSE.
 
Bad administration by the regulator has eroded the faith of small investors in the securities market who have virtually stopped investing in it to the detriment of the economy, the PIL stated.
 

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COMMENTS

Dr Anantha K Ramdas

9 months ago

This is great boon to suffering investors who hold the shares but have no idea of its present marketable value, and how it can be monetized. What about companies like
Nagarjuna Fertilizers, an active scrip in the past, but I have no idea as to why this is no longer listed. How does one go about disposing the stocks of delisted shares?

jaideep shirali

9 months ago

This move by SEBI to delist companies partly stems from its own lack of concern for the investor. I would like to add that, just as SEBI plans to "cull", in their own words, these



































SEBI has not acted in case of 2048 companies, so its eagerness to cover its negligence and add 2,000 more companies is to be expected. This would however destroy investor confidence in the equity markets. Inspite of micro management in some parts of the capital markets, SEBI has done nothing in terms of improving the debt market or tackling the rampant manipulation and suspected insider trading in equities inspite of the resources it has access to. I would be glad if investing in capital markets in direct equities and debt be made compulsory for the SEBI babus, only then would they understand the pain that the retail investor goes through. Just like "culling" these companies, we need to cull SEBI down to size, if they persist with their indifference to the investor.

Rajesh G

9 months ago

What are the procedures for shareholders who have lost their money and still holding shares of suspended companies like Shree Ashtavinayak Cine vision ltd where there are no whereabouts of the company and their directors are lodged in jail.
Will lodging complaint with midas will help? and what are the steps to be taken as their website says that they are not taking any further complaints now......

Arun Adalja

9 months ago

these companies are vanished and no whereabouts.i do not think anybody will get anything.even existing companies are not paying matured fd amount inspite of clb order.

manoharlalsharma

9 months ago

I am thankful to such agency to bring in the knowledge of SEBI and further would like request for ISIN No-of the shares of the lost compnys also so like many people holding shares in PHYSICAL form can deposit with their custodial./thanks again

REPLY

Arun Adalja

In Reply to manoharlalsharma 9 months ago

visit bse site where you will get isin no of the company or visit nsdl site.

Arun Adalja

In Reply to manoharlalsharma 9 months ago

you c

SSSUBRAMANIAN

9 months ago

it is good but the names sof those 4000 companies should be published to public investors so that they are aware of it

PPM

9 months ago

SEBI is for corporate companies and not for retail investor. SEBI will always act against the retail investors and will support the large corporations like FTIL, DLF et., who cheat investors as the senior management in SEBI itself 100% corrupt.

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Fascinating Characters from the World of Finance
Books that give thumbnails of interesting characters are always interesting. Heroes and Villains of Finance does exactly that—provides sketches of the lives and ideas of the 50 chosen characters from the history of finance. While the stories of famous people in finance like Warren Buffett, George Soros, Muhammad Yunus, Bernard Madoff, Charles Ponzi and others are known to many, it’s the other, lesser-known, colourful characters (to the current generation) that make this book interesting. Take a brief look at a few of them.
 
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The book consists of many other stories including those of the biggest scamsters and stock price manipulators—John Law, Charles Ponzi, Alves dos Reis and Bernard Madoff. Why read this book? Because these stories are fascinating and history has a habit of repeating itself. 

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