Relisting of stocks brings Rs 12k crore to investors

Retail investors, who lost 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, according to a CNI Research report.

A worrying feature is that promoters of most of the firms,  before violating listing agreements, sold entire stakes, implying that promoters dumped their shares in the market before trading was  suspended. Between November 2009 and November 2012, as many as 250 companies (out of the 1,450 firms) got relisted, enabling investors to recover their money, said CNI Research CMD Kishor P Ostwal in the report.

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.

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