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Will the Retail Investors be Trapped in 331 Shell Cos forever?

Discussion in 'Traders Coffee Shop' started by shabbir, Aug 9, 2017.

  1. shabbir

    shabbir Administrator Staff Member

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    331 shell companies blocked to trade in exchanges by SEBI. Do you think retail investors stuck in those companies are overdone with and they should have been given a window to exit.

    The day they trade will resume in those companies and it will hit lower circuits and so those retail investors are all trapped forever?
     
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  2. raja_praveen

    raja_praveen Champion

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    Yes investors are trapped .331 companies is big list.
    It should have been done in phased manner from most illiquid to liquid scrips . What so ever the decision , we are the sufferers.
    I saw the list and these type of stocks are mostly braced by small traders/investors
     
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  3. bnnarayana

    bnnarayana Contributor

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    Yes , Retail Investors are trapped for long time. Have to wait and watch how the govt will tackle this issue to help out the Investors




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  4. shabbir

    shabbir Administrator Staff Member

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    So true. 331 is actually ~10% of the total listed companies in BSE so yes it is big number
     
  5. shabbir

    shabbir Administrator Staff Member

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    No one helps the investors.
     
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  6. bhat64

    bhat64 Apprentice

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    Shabbir what is a shell company? Are these the companies that you avoid since they are holding companies and difficult to assess their business


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  7. bnnarayana

    bnnarayana Contributor

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    In Short Shell Companies are floated to convert the black money to white to show that they are doing legitimate business and convenience innocent investors who does not have any idea of the business those companies are doing invest in them and loose their money. As Shabbir has pointed out in his blog that every investor should know in which company they are investing.

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  8. manickarajan

    manickarajan Responder

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  9. shabbir

    shabbir Administrator Staff Member

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    Dummy companies as identified by SEBI from the MCA (Ministry of corporate affairs). So this companies has registered address which isn't real or has more than one company registered at the same address. Has very little real business and mainly earns from trading in the exchanges and things like those.

    Read https://www.bloombergquint.com/mark...-list-of-331-firms-on-market-regulators-radar
     
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