Sir,
My name is Ayush.
I am in very bad trouble and requesting guidance from investors from this forum.
A person who I trusted for more than 2 years and followed his investment advise told me that there is an unlisted company which is going to be a 20x multibagger in 3-4 years.
The name of the company is MSEI (Metropolitan Stock Exchange)
I enquired about its rate as its an unlisted company from 4-5 other people and found out his rates were very high.
I still trusted him and bought as in past he had given names such as Setco Auto and HBL Power.
I observed all his picks and performance and picks for over 1 year and hence did not thought he could do this.
Now, I am left with a stock which is unlisted and has been in loss for many years and also there does not seem to be any near hope of a turn around in it.
Recently the MD said they are targeting an IPO in 2019-2020 but their volumes are very less.
Also, their fixed costs are very much.
For a company to have an IPO, it should be in profit for 2 years consistently.
MSEI is not standing on these parameters.
Also, there is little hope of the case they have filed against NSE for predatory practises as NCLAT has adjourned it.
Kindly help me with what is to be done in the stock.
Should I book losses and sell at 1.5/1.9?
Should I wait it out that eventually something good might happen in stock?
The advisor has cut off ties with me post deal.
I also don’t want to associate with him as when I try to talk about this deal in public groups, he threatens me with a defamation notice and makes me apologize.
Also, I have not even received transaction bill for NEFT made to him.
He can use the Whatsapp messages and emails I sent to him as finalizing the deal.
I am in deep trouble.
You are badly stuck man, now a mercy of promotor. Can’t do much as you are owner of stock. Buying unlisted companies is huge risk if u can’t value them.
Hi. My view is there is no point in selling at such low rates. At this point your loss is 1.5/1.9 and gain can b much more if the case comes in their favour. Risk reward is not un favout2of selling now. Case has only been adjourned, not went against MSEL. So hope for the best. Check agn about promoters. If they are good, they may come out with ipo as well. All d best! Keep us updated and let us know if any help is required
Please be little sensitive here. If anyone can’t add any value atleast desist from scare mongering. I am sure the investor has realised the risks. No point rubbing it in.
Every company which is listed and shares traded in exchange will give an opportunity to buy and sell through market if there are buyers and sellers. For a unlisted company it goes to regulator, next to judiciary.
So if someone can help then it’s Ministry of Company Affairs first (I am assuming this is a company registered under companies act). There are sections for investor grievances and help.
The next step is judiciary, but only if aggrieved with regulators first.
In both above cases you would require enforceable evidence to support your case. A lawyer may help you regarding this as to what all requires.
You should never discuss about any individual in any public space, better take solicitation from lawyer as to what can be done.
Regarding your loss booking, if the margin of loss is 20-25% it’s always recoverable in some other deals/shares. Beyond 50-60% it’s a hard game. Second issue is if you sell everything what will be legal validity then? Meaning will you lose all legal rights?
Best is go to a lawyer. Another secondary option, talk to Moneylife helpline. Write a mail to them, easier to manage rogue elements and expertise via media.
Let us hope and pray you recover out of this mess soon.
NCLAT has adjourned the case filed against NSE by MSEI and passed it to
Supreme Court(11.1.18). NCLAT and other sources cannot interfere now as
matter is up for hearing in Supreme Court Bench.
Supreme Court has sent notice to CCI in matter(8.1.18) seeking
explaination and reasoning on fine levied to NSE by CCI in matter of MSEI
v/s NSE with 3 weeks to reply. Most probably the decision will be in favor
of NSE if a proper reply is not given my CCI to Supreme Court for 51 Cr
fine it levied in 2011.
The matter under CCI and fine is kept by NCLAT but as the NSE had moved Hon Supreme Court in 2014 by filing Civil Appeal no. 8974/2014 and in the said matter notices are issued to CCI by SC the matter before NCLAT is adjourned till 19.2.2018.
