 Check out if you are a loser as 52 stocks face BSE irePublished on Fri, Sep 01, 2006 at 12:10 | Source : Moneycontrol.com Updated at Fri, Sep 01, 2006 at 12:24 18 Investors following Akil Plast. Share this News with them.
Continuing its drive to enforce strict compliance, the Bombay Stock Exchange, BSE, has decided to suspend 52 companies, most of them penny stocks, with effect from September 20 if these companies fail to comply with BSE's provisions of the Listing Agreement.
Public shareholders will be the main losers, if trading in these stocks is suspended, as they hold anywhere between 2-91% in these companies.
In a press statement released on August 30, the oldest Indian stock exchange stated, "despite giving various reminders and subsequent show-cause notices, these 52 companies have failed to comply with various provisions of the Listing Agreement till quarters ended December, 2005." As a result, the exchange has decided to suspend trading in the securities of these 52 companies with effect from September 20, thereby providing these companies a window of 20-odd days to comply with BSE's Listing Agreement. Most of these companies are penny stocks with a market capitalization of less than Rs 50 crore. Their trading pattern, too, is erratic, indicating lackluster investor interest in these stocks. The exceptions are companies like EMA India that closed on August 30 at Rs 120. However, it has a small market cap of Rs 12.12 crore due to its low equity base of Rs 1.01 crore.
Next in line is Lakhani India with a closing price of Rs 35.90 on August 30 with a market cap of Rs 48.29 crore. On an average, only a 35 of these stocks were traded for 16 sessions in the last 30 days. A cause for concern, however, is large public shareholding in these likely-to-be-suspended companies. Out of 50 companies for which data is available for their latest (last) reporting quarter, the public shareholding in these companies range between 2.25% to as high as 91.87%. A quick look at their latest (last) reporting quarter would give an investor an idea as to how regulation-compliant these companies are. As per the exchange rules, each and every company listed on the exchange shall report its quarterly results, failing which, it can act as one of the many reasons for a particular company's suspension. Shukun Construction is the only company in this list that has declared results and shareholding pattern for the quarter ending June 2006. Mintage Electro , on the other hand, has last declared its results for the quarter ending December 2002. However, the companies to be suspended may have come under the BSE scanner for host of other reasons related to non-compliance. Table of companies under suspension threat and their public shareholding on page 2
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Tags: Bombay Stock Exchange, BSE, Listing Agreement, provisions, Public, shareholders, regulation, investor, market capitalization, My Fellow Fashions (Exports) Ltd, Siyaram Poddar Finance & Trading, Shukun Construction, Mintage Electro, Numero Uno Proj, Trans Techno, Shukun Construct, Kaashyap Technol, Fischer Chemic, Veronica Labs., Amradeep Indus., Sampre Nutrition, Sheetal Bio-, Monalisa Infotec, Gamma Infoway, Brijlaxmi Leas., Mintage Electro, Uma Petroprod., Ocean Infrastruc, Vallabh Poly-Pl., Prem Somani Fin., Shree Pacetronix, Gorani Inds., Alka Securities, Naval Technoplas, Akl Soft&Infosys, IAG Company, S I Cap. & Fin., Shri Lakhavi Inf, Koffee Break, Jaipan Inds., Sword & Shield, M P Telelinks, Gee Gee Granites, Jog Engineering, EMA India, Amraworld Agrico, India Polyspin, Datapro Info.Tec, Tai Chon Textile, Hasti Finance, Kashyap Tele, PanjonInd, Scanet Exports, Simco Trading, Hitkari Inds., Jalgaon Re-Roll., Lakhani India, Sheraton Proper., Speedage Comm., Bentley Commerc., Balgopal Holding, S P Finance, Sanchna Trading |
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The public shareholding pattern may have/ have not changed over the period from when these companies last reported their details to the BSE. It is difficult to ascertain this, as many of these companies have been irregular with filing the mandatory details as per the BSE regulation.
