The decline in the stock market are not new to the damage. There is such a special category of shares in the market in which investors' money in that case.Indeed, these stocks traded so low that they try to sell the investor does not meet the buyer and the investment is stuck.Know what stocks are illiquid and risky investment which is why.
What are the illiquid stocks
- Stocks illiquid stocks that are selling in the market compared to the other common shares is difficult.
- These stocks are traded fairly low. The demand for shares is nil and investors find investment opportunities are quite limited.
- These shares are quite risky for investors in these stocks because investors can invest their own, but sometimes it can take a long time to figure investment. In such a situation, investors may incur losses.
- Stock Exchange has issued a list of 400 stocks, which can be risky investments. According to the regulator, there are about 1,000 companies.Such trading is very low. This investment comes under greater risk.
Why invest in illiquid stocks, dangerous
Subramaniam said Pashupati low base, managing partner of Capital syndicate the rally in these stocks look quite common. While some stocks are deliberately intensified.Less volume in these stocks return more than 50 percent in the last few months have been.So many times you see something on the big boom in the stock investors tend to invest in these stocks.According to Pashupati in these stocks is that the share of the losses, despite gains in investor losses because investors to meet buyers may be difficult to withdraw the money.Subramaniam Pashupati advised that investors only invest in such stocks, which have been consistently trading.According to him, the buyer only invest in companies with better fundamentals. So if someone wants to.So if someone wants to get at the right time buyer then it should invest only in companies with better fundamentals.
Stock Exchange has issued a list of 386 stocks
386 stocks in BSE and NSE recently included in illiquid stocks. Stock Exchange said investors quite careful while investing in these stocks.Exchange from July to December 2015, based on the trading activity has declared these illiquid stocks.Sebi in December 2014 to increase trading in these shares were trading rules are simple.Under the periodic call auction of several illiquid stocks was shifted to the normal trading session.
Use caution before investing in these stocks
- Action Financial Services
- Adinath Bayolab
- Aditya Steel
- Alkamist Corporation
- Mco India
- Archana software
- BP Capital Ltd.
- Bio Green Papers
- Blue Chip India
- Cochin Malabar Estate Services
- Denu Buildcon
- Gayatri Sugars
- DCM Faineshiyl Services
- Indo Asian Finance Ltd
- Jindal Capital
- Nimbus Foods
- Pradip Overseas
- Zenith Computers
The delisting Sebi norms
To reduce the number of illiquid shares delisting SEBI has relaxed the rules. According to the new rules, trading in the shares of small companies whose total share in the past year compared to 10 per cent are less than.Market may delist. Currently, only the companies whose shares are delisted from the market in the past year may not be any business.The market regulator has more than 1,000 small companies, whose shares are trading well below last several years. These shares are also exposed to the risk in such.
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