Circuits are imposed on Non FnO stocks so that if any bad rumor/news comes , the stock can have a limited impact and people will get some time to rethink about the final impact of the rumor. If there will be no circuit , stock may crash on any rumor. To control such volatility in tough times , circuits are imposed. Sometimes if situation looks more terrible which can impact entire markets , the regulator has the power to stop trading in that particular stock for some time. All these are for controlling volatility.
Coming to 8K Miles , the recent developments were clearly a signal of very poor governance as well as material misstatements. Things keep on coming out at different times and impacted the prices. Also the inactive behavior of promoters caused this pain. Compare it with the fall in an another company DCM Shriram where it fell heavily from 550 to 250 around and promoter came forward and announced buyback to give strength to the share price.
8K miles promoter could have gone for a Complete Deloitte Audit , could have declared a hefty dividend or a buyback. They themselves are not interested in their business , why would regulator will care for such business.
P.S: Regulator always acts late and yes , we do need a better monitoring of the Equity Markets !
“8K miles promoter could have gone for a Complete Deloitte Audit , could have declared a hefty dividend or a buyback. They themselves are not interested in their business , why would regulator will care for such business.”
I assume Job of the regulator is also to protect the minority shareholders. so far that does not seem to be happening in this case.
The regulators probably would do much more justice if they actively stop insider trade based on news, I am not referring to 8K but generally to companies listed on Indian stock exchange.
When it comes to USA, they chase even people living in other countries if they have any evidence of manipulation
I knew a guy who was very very rich and someone recommended him a script, he put a paltry sum that was insignificant to him in value, and it doubled on announcement of takeover. That same person recommended one more script and he put all the funds that were previously doubled into the new script and it doubled again. This was just 2 occasions, and he was a reputed businessmen so he withdrew all the money and gave it to his wife to spend as it was really petty cash for him and he didn’t wanted to make money he wont be happy with in his more older age. He was quite mature. The FSA based on just these 2 trades froze all his business accounts. Everything was frozen - all his genuine business was lost
The husband of one of my colleage works in mergers and acquisitions in one of the big banks and he is not even allowed to own an investment account and his wife and him never discuss work at home, no matter how interesting the things he is working on.
I would be much happy if Indian regulators ask companies to publish balance sheet as well every quarter instead of just the p&l.
A P&l is supposed to be differences in balance sheet that flow into the p&l statement and yet we dont have the balance sheet which in reality is the main statement.
For instance when you look at inventory figure in some companies, the inventory in p&l is a result of ending inventory in balance sheet. Its not the p&l but the figure in balance sheet that is a deciding factor on what the p&L figure should be. And its the same for almost all major items.
A cash flow can easily be generated from balance sheet but its impossible to generate one from p&l
Had 8k miles printed a balance sheet, things like buildup of fixed assets would be evident much sooner instead the publication of march 2018 results started the cascade
CARE revises downward all the Bank Loan ratings of 8K Miles on October 29, 2018 (total size of Rs 50 crore). The Term Loan facility of 25 crores is rated D, which means “in default or are expected to be in default soon”
They could not service interest on a Rs 25 crore loan on time. Their proposed Rs 50 crore NCD has also been revised downward to “C”
Ratings Press release here
The value destruction is complete.Incompetence at all levels and am sure very soon Deloitte will need to explain as to what went wrong.
Are you sure they wont resign before that 
like they did for manpasand ?
I think their backs are covered as their report says they only audit the Indian company
So there it is.IFCI sells 14 lac shares on NSE/BSE @Rs.67.They seem to have recalled the loan fearing default.The crisis continues to escalate.
As per Sept shareholding, TOTAL promoter holding stood at 48.94%.
After this IFCI sale (14,07,547 shares), the promoter holding came down to 44.33%
And Suresh’s stake came down further from 47.38% (As per Sept filing) to 42.77% !!!
DAMN !!
Who would have been a counterparty for this trade at such high volumes? Any thoughts @esoteric
Actually, over and above, it will be less by about 7.5% because SV sold another 25 lakhs on Oct 1.
Thanks!
He has pledged 26 lacs to IFCI of which 14 lac shares are sold The loan amt is Rs20 crs.Tomorrow you should see the next lot on offer.
He has pledged 30 lac shares for loan with Indian bank.That will next hit the market.
He had 55% of which brokers sold about 15%.If these two institutions sell that will be another18%.He will be left with 22%.
He is a techno crat promoter.All his business is in US.Why will he stay here and do the rounds of SEBI and courts.Either pull out the US subsidiary into a separate company or ask all his employee partners to resign and start a new company.The future looks extremely bleak.
@diffsoft- My guess is these are bought by the brokers who sold his pledged shares and public who are under the mistaken impression that somebody will buy the stake and run this company profitably.
This is a special skill business and people make the company.All his top employees in US are owners of companies purchased by him.They all have a stake in the US subsidiary as part of the purchase consideration.
If this listed company slips out of his control,the US subsidiary will chart its own course leaving a shell here with a large equity.
The exuberance is unjustified and without understanding the business.
Securities under the ASM framework are reviewed after a month on a daily rolling basis for applicability of ASM Framework.
According to NSE, the review is done on the following lines:
Scrips having PE ratios of less than 10 (PE ratio is between 0 to 10) are moved out of ASM framework and the close price becomes the base price for subsequent reviews.
Scrips having PE ratios less than the PE ratio of the Nifty500 index are moved out of the ASM framework in case such such scrips do not meet the entry criteria stated above.
Scrips having PE ratios less than 2 times the PE ratio of Nifty 500 index continue to remain under ASM. However, such scrips get moved out of the trade-to-trade segment, provided they were transferred to trade-to-trade segment on account of ASM.
8K MILES SOFTWARE SERVICES LTD.has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 13/11/2018 ,inter alia, to consider and approve To consider, approve and take on
record the Unaudited Financial results for the Quarter Ended September 30, 2018.
Source bse: https://www.bseindia.com/corporates/ann.aspx?scrip=512161&dur=A&expandable=0
Seems some cheers soon be coming for investors after high traded quantity in last two days, which is definitely a positive sign.
Can you share the DSP file showing reduction in holding ?
Factsheet Open ended Oct 2018.xlsx (196.1 KB)
DSP ISIN Open Ended Portfolio Sep 2018.xlsx (203.2 KB)
PLease search 8k Miles in both files and compare.
A few days back I saw total institutional holding(LOCAL INSTITUTIONS/MUTUAL FUNDS)of 263750 being held by DSP Equity Opportunities Fund.Even the holding of Canara HSBC was missing.Do not know if it is reliable.
There should be some update related to 2nd Q result Today but they have not published it within 13th.