Slow refunds

While on Parasvnath, investors complain about the delayed refund by Intime Spectrum, its Registrar and Transfer agent (R&T). Dozens of investors have been posting complaints on message boards and writing to complain about the R&T’s tardy behaviour. They allege attempts to contact the registrar via email, fax or the designated phone number are futile. Some narrate experiences where refund orders were sent to wrong addresses and corrected only after demanding photocopies of the application and demat details. Such demands have been made this time too. Through these complaints we learn some investors continue to get their refund by speed post despite the multiple application scandal exposing how scores of refunds were directed to a bank address instead of the investors. If investors now need a PAN to trade, why aren’t they asked for a bank account as well that can be electronically credited with dividends and refunds? In Intime’s case, investors say electronic credits are also erratic, so their money remained locked up and they lost an opportunity to apply for the Sobha Developers IPO. Two years ago, an allotment goof-up by an over-burdened R&T agent had caused controversy during ONGC’s listing. Sebi had responded by hurriedly setting up the SMILE committee to examine ways of the strengthening primary market infrastructure. It made several sensible recommendations that were unfortunately ignored. Maybe it is time to dig up the report and act on it before creaky market systems break down again.

Still traded

While the Finance Ministry is in favour of permitting delisting of companies by amending the Securities Contracts Regulation Act, message boards of financial websites reveal investors are worried about the fate of their investments. At myiris.com, we found several investors of DSQ Software furious at the money they’ve lost. They’re even more worried the company is working at getting delisted by refusing to pay listing fees. Both national bourses have suspended the scrip for non-payment of listing fees. But investors are desperate it continues to trade. Interestingly, one Ankit has posted his mobile phone number and offers to mop up shares “at a good price”. When we called, he said that he had already completed a buy-order of 50,000 shares for a client. But he is willing to note our number and contact us again. Is the share mop up part of a tax evasion strategy?