SEBI introduced a new payment option ASBA (Application Supported by Blocked Amount) as an additional payment mechanism for the benefits of certain investors applied in IPO (Initial Public Offers). This option would be available to retail investors only. It is also an exclusively available payment option for the investors applying in right issue of shares, which means the additional shares offered to existing share holders of a listed company based on preference. According to the investors who experienced this new trend application, it is definitely a 100% success from SEBI’s new application. With this payment option the application money remains in the investors account until the shares are released. So no money is goes out from the investors account.
Exits are never easy, whether it’s an exit from a house where you have lived your lifetime or exiting an investment. Many of us would have faced such a state of mind when we know that the company where we had held shares for the last fifteen years would be soon delisted from the stock exchange. So what is Delisting? Delisting of a company means, a procedure in which a company’s shares are removed from the stock exchange. Delisting of shares has become a critical issue in the financial sector that causes uneasiness for the investors.
In such types of situations we would be totally confused, whether to hold shares and wait for the company to relist or encash them by selling the shares to the promoters. Over the past three years, a minimum of 50 companies have delisted from the stock exchange, due to this reason the retail investors get struck with their investments. Normally one of the main reasons for delisting is violation from the financial specifications set out by the stock exchange.
Knowing the future and taking advantage from it, is a dream come true for every one. Those that possess the skills are able to reap the benefits from it. On Dalal Street, investors and speculators alike will forecast the market movement of the index and commodities by trading in the derivatives. The NSE launched trading in Interest Rate Futures (IRF) recently on 31st Aug after a gap of 6 years.
The rise of the Sensex making history has surely increased the value of the investments of the Investors, But the retail investors were not able to enjoy the juice of their profits, the zoom that was shown in the stock market prices were seen but they were not able to make out with their profits, some were having the prices run back with small margins while others had good profits but the disappointment was that when they called their brokers the market was at upper circuit and the trading was halted.
There was many investors including me who wants to get rid of some of the stocks which has been sitting on the portfolio for quite a long time, the experts views and suggestions for the Indian story is good but many off them are waiting for the chance to exit from their positions profitably. The capital market regulation was that the trading has to be suspended for half an hour if the index had a rise or fall of 10% before 1 pm. The Nifty was up 14.2% and the Sensex around 12% when the trade was suspended within a minute after the market opened.
This circuit levels would activate as soon as this limit is hit, and no fresh orders will be accepted into the system, but at the same time the pending orders would be executed which would lead the index value shoot to the limit. Whatever is your position you would have been if you have stocks in profits what is your next move going to be?