January 11, 2012

Pre 1947 Companies Joint Listings Pakistan India -Wanted

Jalandhar Investors Want  Joint Listings of Pre 1947 Companies  in Pakistan And India

When British India got divided in 1947 in to India and Pakistan  many shareholders became citizens of one country and were holding shares of a Company which came under the other country.

After 1965 , share holdings of such unlucky shareholders were transferred to both countries Government Departments named , very perniciously  " CUSTODIAN OF ENEMY PROPERTIES ".

Well , circumstances have changed. No body gains by remaining in an ENEMY Mode . Only some Promoters , by most ingenious processes , have given themselves extra gains ( at the expense on genuine holders who are , now , in Pakistan  or Banla Desh )

Of the Pre1947 Joint Stock Companies let there be Common Listings in both India and Pakistan

For a case study please consider the moves under taken by a Pre 1947 Indian Company Binani Metals Limited :-

Binani Metals -Why Face Value Reverse Split to Rs.1000 ??

The recent consolidation ( Reverse split ) by Binani Metals Limited to the unprecedented Rs. 1000 Face Value per share is one of the most interesting and intriguing Indian corporate actions  vis-a-vis small shareholders. No other Listed company in India has a face value of Rs.1000.

Binani Metals Limited ( along with its many amalgamating companies like Metal Distributors Limited ) is more than 70 years old company .So it had many dormant ( dead share holders and Custodian of Enemy Property ) shareholders.

All those share holders holding below 10 or in not multiple of 10 were reduced to holders of fractional shares when Binani Metals Limited  decided to consolidate the face value ( from Rs. 100 to Rs. 1000 ) .These share holders were compulsorily paid pro rata  @ Rs. 450 for Rs. 100 face value " fraction " ( This was a mere fraction of the True Value and the Share was and still is Illiquid . No Trading in the only Regional Exchange  Calcutta Stock Exchange - since 1992 )  .

The interesting topic for further research and study is what became of the dormant and Custodian of Enemy Property share accounts. There shares were compulsorily sold . But what became of such unclaimed  Payment Warrants.

Probably they are still unpaid and that money is  with the Company !!!





Also . please read :-

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