The company relisted in September last year, but registrars repeatedly put off dematerialising shares on excuse of faulty master data. Investors demand investigation into alleged manipulation
Many small retail investors of Jay Energy & S Energies Ltd are struggling to dematerialise their physical shares, because, according to the company's registrar transfer agents (RTAs) the master data of shares is not in order. And those retail investors, who have managed to dematerialise their physical shares after a long struggle, have already missed the opportunity to sell the shares at higher prices.
Jay Energy & S Energies tied up with the National Securities Depository Ltd (NSDL) and re-listed the stock after 13 years on the Bombay Stock Exchange (BSE) on 29th September 2010, but the move appears suspicious. On 30th September, the company informed the BSE about the shareholding declaration, saying that the company had dematerialised 42.82% of the total 6,797,700 shares. The company dematerialised 48.86% shares of promoters, who own 2,250,000 shares, while 39.83% of the holding of non-promoters, who have 4,547,700 shares.
But retail investors were not informed about the relisting and the shareholding declaration. After seeing the notice of shareholding declaration on the BSE and noting that 39.83% of the non-promoter shareholding had been dematerialised by 30th September 2010, the retail investors started sending physical shares for demat.
However, the company's RTA-Purva Sharegistry (India) Pvt Ltd-did not accept any applications of retail investors to demat their shares, as Jay Energy & S Energies had instructed it not to process any transfers or demat requests as the company was in the process of changing the registrar.
"Yes, we asked Purva not to process any demat or transfer requests as we were in the process of appointing our new registrar, because Purva did not complete the given work on time," Mihir Parikh, director, Jay Energy & S Energies told Moneylife.
However, according to SEBI guidelines an existing RTA can continue to process requests for demat/share transfer until a new RTA is appointed.
Meanwhile, Jay Energy & S Energies appointed Cameo Corporate Services (CCS) as the new RTA. CCS delayed processing requests by retail investors to demat their shares, for two months, saying it had not established 'connectivity' for the scrip and had not received records from the company.
The struggle of shareholders did not end here. After connectivity was established in early December, CCS informed investors that "the master data of shares is not in order and the certificate numbers and distinctive numbers are not tallying with the master data of shares."
"We will complete the dematerialisation process within the next one week," said Mr Parikh. However, he declined any further comment.
This is strange, for when the company got re-listed, 39.83% of non-promoters' shares were converted into demat with the same master data of shares. Why didn't the registrar raise the same problem then, ask investors.
Was the master data of shares made an excuse to create an artificial scarcity and influence the share price? Or was the data bad even before 30th September 2010 and were procedures violated at the previous registrar to allow over 39% of shares to be dematerialised without a problem?
The capital market regulator must find out who the "favoured" people/entities were who managed to get their shares dematerialised quickly and just in time on the resumption of trading in the scrip from 29th September 2010, and without facing the issue of incorrect master data.
Many shareholders have raised these issues with the Securities and Exchange Board of India (SEBI), the National Securities Depository Ltd (NSDL) and the Ministry of Corporate Affairs, but they have not received any response so far.
Dematerialised shareholding increased to 55.19%-- made up of 48.86% of the total promoters' share holding and 58.33% of the total non-promoter holding--by 30th December 2010. However, NSDL statistics for 31st December 2010 showed that 292 demat requests of the company were pending for more than 21 days.
Finally, some retail shareholders started getting dematerialised shares back in January this year. However, some are still waiting for their shares to be demated.
Jay Energy & S Energies announced that it had fixed 15th February 2011 as the record date for the purpose of change in face value of the equity shares from Rs10 to Rs2 per share.
However, retail investors have not benefited from this as share prices fell dramatically from a peak of Rs203.45 on 5th January 2011 to Rs66.70 on 11th February (before the share split). Today, the stock trades at Rs6.15 (about Rs30 pre-split), a whopping 85% down in just three months.
It seems that the non-promoters, whose shares were dematerialised before 30th September 2010, earned mammoth profit and on the fear of a share split, the big non-promoters sold their shares and that this led to a fall in share prices.
The much-awaited encounter between the two neighbours attained a record viewership of 20.02 points, unheard of in the Indian television space. Cricket fever has led to a 514% increase in the ratings for the sports genre over the average on the last four Wednesdays
The Indian cricket team, which is on the verge of winning the World Cup, has already created history for television viewership. The semi-final between India and Pakistan on Wednesday saw the ratings peak at 20.02, which no event, no match, no show, has achieved so far, according to Audience Measurement and Analytics Ltd (aMap). aMap is an overnight TV audience measurement system that provides data on multiple dimensions like demographics, ownership and viewership.
"World Cup matches have seen high viewership numbers… be it India against England, or India against Australia. However, the India-Pakistan match surpassed all expectations, attracting ratings of 11.7 and getting peak ratings of 20.02 points. The madness associated with the India-Pak match was in true form and with 67.3 million viewers watching the match on TV, it was the grandest of all events," said Jiniti Shah, vice-president, aMap.
According to aMap, the time spent per viewer for the India-Australia match was 115 minutes, for the India-England game it was 99 minutes, and the involvement shot up to an electrifying 160 minutes per viewer for the titanic tie on Wednesday. It said the time spent for the sports genre shot up by 248%, which contributed to the high jump in gross rating points (GRPs).
Women in India, normally perceived to be not too keen to watch cricket matches, were glued to the TV sets throughout the matches. The female target group (TG) has shown a tremendous growth, especially cable and satellite (CS) housewives (working) showed an increase of 49% and CS housewives showed increase of 33% across all TGs, from 15+ years females that witnessed a 30% increase in viewership to CS 4+ years females viewership that increased by 31%, the audience measurement service provider said.
While sports channels witnessed robust viewership, general entertainment channels (GEC) saw viewership dip by 20% during the semi-final match on Wednesday. aMap said, "The match led to a 20% dip in GRPs of the GEC genre with a subsequent increase of 514% in the sports genre over the average of last four Wednesdays. The net reach for the sports genre increased by 80% over the average of last four Wednesdays."
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