Cupid seems to be looking to engage the services of a professional PR agency. I got a call this morning from one such agency inquiring about the Co.'s corporate governance! This can only be good news for the shareholders as it means that going forward we can expect authentic information on a regular basis. Meanwhile, BSE’s circuit limits, which are arbitrarily changed over night, continue to come in the way of honest price discovery. Typical of BSE to be shooting itself in the foot! I can think of at least half a dozen Co.'s that have listed / in the process of being listed on NSE in the last 3 months just to circumvent this arbitrarily rule!!
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Sir - would you know if Cupid has plans to get listed on NSE in the near-term… esp since the management is usually proactive
@Ranjan, it’s logical to assume that Cupid too must be striving for NSE listing, given that it has been at the receiving end of the rule. NSE listing however is a long drawn & tedious process. Having said that, this rule does present a great opportunity for investors looking to accumulate quantities without having to worry about any run up in the price !
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What is confusing is the weekly and monthly limit.
Currently, the weekly hi is 390 but monthly is 330. Next week will be the last week///so, which one is applicable?
Price Band
(28 Mar 2016) Daily Weekly Monthly Quarterly Yearly Applicable Today
% Upper Lower Upper Lower Upper Lower Upper Lower Upper Lower Upper Lower
5 341.50 309.10 390.30 260.30 330.40 137.30 880.00 0.10 976.00 0.10 330.40 309.10
Since this forum is for long term value investors, I am not sure this focus on short term price movements really fit well with the ethos of this platform.
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There is a bse notice which says cupid and other comapnies will be suspended from trading in BSE effective from 31 march .
Seniors @RajeevJ … Need your guidiance in this matter .
Dear All,
I Called Mr Garg after getting this news. He was surprised and asked for the source of news.
He said they have not received any communication for the same from BSE and would sort out things tomorrow.
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sir, is another treehouse coming into play. Why is bse so irresponsible to not put the explanation for the suspension & that too in a very short span. There are many shareholders involved in this right?
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http://www.bseindia.com/Static/about/criteria_for_suspension.aspx?expandable=2
one may check the bse rules for suspension of a company from trading
@RajeevJ and other seniors, i tried calling the company on the numbers listed on the website but the numbers werent reachable. If anyone gets a chance to speak with the company secretary/Mr. Garg on what steps are being taken to remedy this situation, please do update. Thanks. Disclosure- invested.
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I have Spoken with their CS on this & he was also not aware about all this & he said he will get back to me on my Mobile (He has taken my Mobile number)…Spoken with Mr Kinnar Mehta of BSE Contact mentioned in Notice & he was so casual about this Notice, seems this is routine things for BSE…They have not bother to inform promoters officially before putting their Scrip on Suspension with JUST 3 DAYS Notice 
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This is the link for the first notice notice sent by bse on 4th March 2016 -
http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20160304-28
THE ISSUE DOESN’T SEEMS TO BE SO SERIOUS AS EXCHANGE IS CONCERNED ABOUT PRICE MANIPULATION THROUGH PREFERENTIAL ALLOTMENT.
AND HAVE LAID DOWN A DETAILED S.O.P. FOR REVOCATION OF SUSPENSION
WHERE COMPANY HAVE TO SUBMIT AUDITORS REPORT AND FEW DOCUMENTS
IT SEEMS THAT THE SUSPENSION ORDER WILL BE REVOKED SOONER THAN LATER
few questions to be answered
- had cupid done any preferential allotment in the near past 8 -15 months .
- if not then cupid ltd should not be given suspension order under this notice sent on 28 march 2016
please share information about cupids preferential allotment if any as exchange is also checking for miss appropriation of funds under this notice .
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hi ashish
can u please share the company company secretaries phone no
as i want to update him about the first notice on 4th march 2016
else the CS will waste precious time in getting to know the basics .
**BSE people are not bothered and taking it very casually **
they should have sent the notices to all the companies on which the suspension notice was to be served .
BSE is acting very irresponsibly . If they cant have standard procedure why the hell do they allow the listing of companies on its platform.
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Spoke to Mr Om prakash Garg
After asking he told me that the preferential allotment was done in 2012
and they have all the documents about the fair transactions also they have sent their person
to BSE to resolve the matter .
BSE 4th march 16 notice says about price manipulation due to preferential allotments
In cupids case the price was not moved till at least 2 years after preferential allotment.
so the case against cupid will not stand .
BSE seems to have included name of the company only due to the steep price move and which is the case with hundreds of companies and that cannot be only basis for suspension.
also have written mail to BSE as they gave only 3 days to the company and shareholders to take action which is sheer injustice.
WILL REQUEST OTHER MEMBERS TO WRITE A MAIL TO BSE AUTHORITIES REGISTERING OUR GRIEVANCES
mail ids can be taken from this link
http://www.bseindia.com/static/about/contact_us.aspx?expandable=5
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I contacted Mr Amit (phone number mentioned in notice).
As vijay has posted, basis for suspension is notice dated 4 march 2016.
It says
"Trading Members are aware that, in past, SEBI had passed several orders against the concerned parties/companies, inter alia, in relation to unusual price movements vis-a-vis preferential issue price and weak financials of the company. In addition to aforesaid, Trading Members are also aware that the Exchange had suspended trading in the securities of various companies on account of surveillance reasons.
It is noticed that there has been substantial increase in manipulation/abrupt movement in the prices of securities wherein common modus operandi is through the route of preferential allotment.
While the Exchange, from time to time, has taken requisite steps to detect and contain such instances, it is felt necessary that further pre-emptive measures should be adopted to curtail misuse of the Exchange’s system."
So conversation with BSE official gave few insights on what is next:
- This is temporary suspension.for surveillance purpose.
- Now Revocation of suspension depends upon promoter, How quickly they reply to BSE with required documents(which are mentioned in the notice itself),clarifications sought.
- But IT WILL TAKE TIME FOR SURE.(Couldnt get timeline or any generalised comment from him)
My doubt is"
Is this due to recent SAST notice from Mr Garg about getting some 29 lakh shares from his brother as “GIFT”?
MAIL SENT TO BSE
vijay rawat vijayrt18@gmail.com
11:24 AM (17 minutes ago)
to stanies.crasto, bcc: corp.relations, bcc: manish.mehta, bcc: bse.furtherlis., bcc: listing.sales, bcc: is, bcc: user.trdops
Dear sir
I am a shareholder of Cupid Ltd
You uploaded notice no 20160304-28 on 4th march on your website which was very generalized notice with just rules and bye laws for suspension under surveillance and revocation of suspension .
Did you sent the notice to individual companies on which you wanted to serve the suspension order and asked for clarification from them
you directly uploaded final notice 20160328-15 on 28th march 2016 leaving 3 days to take action .
isn’t this big injustice to the shareholder and to the company that you are acting just only on your discretion and have not given time to the concerned parties.
even if you had sent notices to individual companies isn’t it your duty to give at least 30 days time to the shareholders so that they can take appropriate action about their holdings in the company.
you should have released the final suspension notice at least 20-30 days earlier
kindly keep the interest of minority shareholders before taking such severe action.
Else we as a minority shareholders will take legal action against the exchange.
Regards
Vijay Rawat
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@vijay18 @RajeevJ @kushalchoksi
- I had a few telephonic conversations with different concerned people in the Surveillance & Supervision department of BSE.
None of them seems to have clarity on the basis of which suspension notice was issued to Cupid.
One Mr. Amit Bhagwat was only able to repeat that “It is as per Sebi guidelines”., without knowing much details about the suspension himself.
I then asked him details of any previous notice issued to the company, asking for any clarification prior to the suspension notice. To this, the answer was negative.
I also had a word with his senior., & the result was same.
No chance of clarification was given to the company, prior to the suspension notice. Nor were the investors taken into confidence.
BSE has acted in a very haphazard way.
Cupid investors can call up & raise their grievances about BSE’s unwarranted action with :
Rajesh Saraf
Sr. General Manager
Surveillance & Supervision
Rajesh Gandhi
Assistant General Manager
Surveillance & Supervision
Usha Sharma
Assistant General Manager
Surveillance & Supervision
Tel : 022-22721233 / 34
- I had a talk with the company as well. They were also surprised with the action taken by BSE. The latest development on their end was they have sent a few people to BSE to sort out the matter.
I specifically asked them that, “Was there any notice issued by BSE to the company, prior to this?” The answer was a clear No.
I also requested them to issue a statement to the investors, within a day or two, & put clarity on the issue.
Prima facie., this looks that there is nothing wrong with the company fundamentals or corporate governance. This looks just another fiasco caused by BSE.
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we should write mails to BSE and SEBI asking them what kind of investor protection policy they
have where they dont ask for clarification from company .
suspending the trading will damage the market cap and reputation of the company.
we should register the grievance on
http://pgportal.gov.in/
http://dpg.bharatsarkar.nic.in/
Modi govt is very active in solving the issue affecting common man and some communitation could go from govt to BSE and SEBI .
Also we should raise the issue on twitter handles of @BSE_News @SEBI_India
lets be proactive so that its not repeated in future.
We are missing @RajeevJ here .
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Cupid Limited and Lykis Limited are victims of the Surveillance System.
Believe its a matter of time then regulatory concern for Cupid.
Have written a note on it here - http://www.nooreshtech.co.in/2016/03/cupid-limited-and-lykis-limited-victims-of-good-surveillance-rules-of-bse.html
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