1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

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

    Joined:
    Apr 30, 2012
    Messages:
    6,699
    Likes Received:
    1,940
    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?
     
    shabbir, Aug 9, 2017
    Share #1
    raja_praveen likes this.
  2. raja_praveen

    raja_praveen Champion

    Joined:
    Sep 18, 2016
    Messages:
    406
    Likes Received:
    335
    Occupation:
    CHARTS READING
    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
     
    raja_praveen, Aug 9, 2017
    Share #2
    shabbir likes this.
  3. bnnarayana

    bnnarayana Contributor

    Joined:
    Jun 14, 2017
    Messages:
    142
    Likes Received:
    119
    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




    Sent from my Le X526 using DIY Technical Analysis mobile app
     
    bnnarayana, Aug 9, 2017
    Share #3
    shabbir likes this.
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,699
    Likes Received:
    1,940
    So true. 331 is actually ~10% of the total listed companies in BSE so yes it is big number
     
    shabbir, Aug 9, 2017
    Share #4
  5. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,699
    Likes Received:
    1,940
    No one helps the investors.
     
    shabbir, Aug 9, 2017
    Share #5
    bnnarayana likes this.
  6. bhat64

    bhat64 Apprentice

    Joined:
    Oct 27, 2016
    Messages:
    230
    Likes Received:
    249
    Shabbir what is a shell company? Are these the companies that you avoid since they are holding companies and difficult to assess their business


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    bhat64, Aug 9, 2017
    Share #6
    shabbir likes this.
  7. bnnarayana

    bnnarayana Contributor

    Joined:
    Jun 14, 2017
    Messages:
    142
    Likes Received:
    119
    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.

    Sent from my Le X526 using DIY Technical Analysis mobile app
     
    bnnarayana, Aug 9, 2017
    Share #7
    shabbir likes this.
  8. manickarajan

    manickarajan Responder

    Joined:
    Sep 16, 2016
    Messages:
    92
    Likes Received:
    78
    manickarajan, Aug 9, 2017
    Share #8
    shabbir likes this.
  9. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,699
    Likes Received:
    1,940
    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
     
    shabbir, Aug 9, 2017
    Share #9
    bhat64 likes this.