Retail investors can recover Rs 12,145 cr from relisting: Report
PRESS TRUST OF INDIA
Mumbai, Jan 27: Retail investors, who lost a whopping Rs 61,000 crore in blocked funds due to suspension of trading in 1,450 firms during 1992-2009, could get back Rs 12,145 crore on re-listing of some these firms, says a report by CNI Research.
Between November 2009 and November 2012, as many as 250 companies (out of the 1,450 firms which were suspended) got relisted, as a result of which investors could recover their blocked funds, said CNI Research, Chairman and Managing Director Kishor P Ostwal in the report.
"During the past three years close to 250 companies have come out of trading suspension and shares of many of them are at 52-week high and many have changed hands. As a result, these companies today have a combined market cap of Rs 12,145 crore," he said.
The report further says the balance Rs 58,296 crore blocked in such stocks could also be recovered if the regulators allow the remaining 1,200 companies to relist.
Going by the success of relisting, the actual value of money locked in the system could be as high Rs 1 lakh crore, it said.
In November 2009, CNI Research, which deals with capital markets, had in a report said that BSE and NSE had suspended trading in 1,450 firms for not meeting the listing norms. Of these companies, the details about as many as 574 were missing from the exchanges. Of such 574 companies, 536 were on the BSE and the rest 38 were on the NSE.
The present report suspects that as considerable time has lapsed, this could be one of the backdoor de-listing routes, where promoters sell shares in the open market, following violation of the listing norms which prompts the exchanges to suspend them from trading.
Lastupdate on : Sun, 27 Jan 2013 21:30:00 Makkah time
Lastupdate on : Sun, 27 Jan 2013 18:30:00 GMT
Lastupdate on : Mon, 28 Jan 2013 00:00:00 IST
- MORE FROM BUSINESS
‘19 Yrs Ago On Jan 27, Soldiers Shot Dead 27 Civilians For Observing Strike On R-Day’
Kupwara, Jan 27: This frontier district observed a complete shutdown on Sunday to pay homage to 27 civilians killed on this day allegedly by Army for observing shutdown on January 26. The strike call was More
- Srinagar City
BRAVING COLD, THOUSANDS OF DEVOTEES PARTICIPATE IN NISHAT MARCH
SYED IMRAN ALI HAMDANI
Srinagar, Jan 27: Braving bone-chilling cold, thousands of devotees on Sunday participated in processions organized in connection with the Eid-e-Milad-un-Nabi (SAW) celebrations. Main procession was More
Amendment in Panchayati Raj Act
Jammu, Jan 27: A four-member committee looking into the suggestions for incorporating various provisions in the existing J&K Panchayati Raj Act, is likely to submit its report to the government within More
- South Asia
PRESS TRUST OF INDIA
Lahore, Jan 27: Pakistan's National Assembly will be dissolved before March 16 and the date for the next general election will be announced in the coming ten days, Information Minister Qamar Zaman Kaira More
Santa Maria (Brazil), Jan 27: At least 245 people died today when a fire tore through a nightclub packed with university students in the southern Brazilian city of Santa Maria, police said. The death toll More