Loot in the Share Market

I have been in the share market for more than 30 years.

I have seen many ups and downs right from the Harshad Mehta scam, Ketan Parekh scam, Lehmann Brothers scam.

I was fortunate to have entered the share markets when new issues were still available at fave value or at a slight premium to the face value.

I bought many dud shares and one or two very good shares which has given me returns many times over the investments which I made.

Over time, I have found that if you want to make money in shares, you must know the art of selling.

Buying is not important for when the share market goes up, all types of shares start rising. However, if you know when to sell, then only can you make profit in shares.

Nowadays, hardly any issues are made at face value or near face values. All issues are made at a very high premium to face value and so the person applying for these issues stands very little chance of making any profits for at least 10 years. The merchant bankers and the companies’ promoters skim off all the cream from new issues. SEBI and the Indian government is making all efforts to seduce new investors to subscribe to new issues but unless the premiums to new issues are drastically reduced the retail investor will keep away for IPOs. For that the merchant banker who connives with the promoter to charge high premiums should be punished by banning them from new issues for at least one year. Then only will merchant bankers become more vigilant in not promoting dud issues.

It should be the duty of SEBI to locate and pin point dud issues and the promoters associated with them. A record should be kept of such promoters and they should be prevented new issues under some other names. Their complete bio-data should be posted on the SEBI website so that people avoid any issues made by them.

However SEBI has failed miserably in performing this duty with the result that the IPO scams continue.

In the coming issues, I shall mention some of the dud issues I had subscribed and the promoters associated with those issues. I hall also invite our readers also to write of the dud issues they got into and high light iny bad experiences they had with any of the promoters.

I shall start this week with a company by the name of PATDAR BUIDLCON LIMITED,

Its registered Office is at Lati Bazar, Joravarnagar 363020, Dist Surendranagar, Gujarat.

The Directors of this company are 1. Rajnikant Patel, 2. Ramjibhai Patel, 3.Dhirajlal Patel and 4. Pravinkumar Patel.

I have just received the AGM booklet for their Twenty Sixth AGM.

I find no record of this company in the shares I have which means the company has changed its name without informing me.

Now, I have looked up the trading pattern of this company.

It has traded on the following dates with the number of shares traded.

29.8.2011 – 100 shares

31.10.2011 – 200 shares

24.11.2011 – 200 shares

25.11.2012 – 300 shares

28.11.2011 – 300 shares

14.12.2011 – 200 shares,

16th, 20th and 21st Dec, 2011 – 100 shares each

22.12.2011 – 200 shares

23rd, 26th and 27th Dec, 2011 – 100 shares each

28th and 29th Dec, 2011 – 200 shares each,

30.12.2011 – 100 shares

3rd and 4th Jan, 2012 – 200 shares each

5th, 6th, 9th, 10th, 11th, 12th, 13th, 16th, 18th Jan, 2012 – 100 shares each,

19.12.2012 – 200 shares

20th, 23rd, 24th, 25th, 27th, 30th, 31st – 100 share each,

02.02.2012 – 500 shares.

Since 2nd February,2012, the company has stopped trading in the share market.

I will ask my readers to draw their own conclusion of this company and is it

worthwhile trusting any other company in which are 1. Rajnikant Patel, 2. Ramjibhai Patel, 3.Dhirajlal Patel and 4. Pravinkumar Patel are involved.

This is my first dissection of the companies in our share market. Many more such dissections follow.