Hi
No doubt a very nice discussion.
Unfortunately, many of us (investors) buy into 'penny' companies without knowing a **** about the company.
Many of the 'penny' companies have downed their shutters for many years. Some report turnover of just 1 0r 2% of their market cap.
Greed is probably one of the underlying factors that makes us buy into shares of such dud 'penny' stocks. We are rather very careless and casual in our approach in buying such stocks. We, generally do not part with even 100/- rupees to any vendor or even an autorickshaw guy without ascertaining as to whether the amount paid is truly worth or not. But, when it comes to investing in the share Market, we invest 1000s of rupees without baiting an eyelid or even asking a single question.
This is where the Regulator comes in. We generally hear the explanation that there are about 5000 listed companies and it is very difficult, if not impossible to keep a track of all these companies.
But, this is what they are supposed to be doing. The Regulator does not have to be bothered about the top 2500 companies with the likes of Reliance, Tata, Infosys, etc, but has to concentrate on the lower half.
Companies that do not file their returns regularly, companies that do not report any turnover, companies that report continuous losses are the companies that SEBI has to monitor closely.
One more way, SEBI can unearth information, is to ask IT Authorities for copies of the IT returns of these culprit Companies.
Vigilance, sadly has failed millions of investors.
God save the country.
I would like Traderji and seniors to repond on this thread and I would also like to request Traderji to send a copy of all these posts to SEBI, Valuewatchinvestors.com, Ministry of Company Affairs.
Regards
Kamalesh