Directors and shareholders are looking after the return of the invested money only. Diractors in particular are in control of money spending, first they make sure that they get legal powers to use the money as per their wish, later on they start to adopt all mal practices permitted in law. Cases pertaining to Vadra, Gadkari etc., are latest examples. Similarly share holders who are in minority are not looked after by the companies. Thousands of crores are eaten by these directors are eaten of the common public, no law could curb them so far.Everyone is seeing legal truth, no one is interested in practical aspect.
The Public Enterprise system in INDIA is meant for looting the common man. Take the example of UTI - More than 90% of the investing public held US 64 units at one point of time. Unit Trust came into trouble when the BSE sensex was at the 2000 point level. A consotrium of government bodies including SBI and LIC was formed to take over and manage the assets of UTI !! US 64 holders saw erosion in thier unit value from a high of Rs.14.50 to Rs.5.65. Most US 64 holders bailed out at Rs.5.65 with a cash loss of more than 50%. Many senior citizens with no active income were a part of the public that bore this loss. Thereafter the markets saw an upward trend , BSE touched 20000 mark and is presently at 17000 mark. To the best of public knowledge SBI , LIC and UTI itself, never physically sold any of the blue chip shares, in distress, and still hold/trade in those blue chip shares. Who has taken home the appreciation / present value of these shares?? Was it, or IS IT, not possible for the government to identify and compensate the unitholders, at least to the extent of paying up the principal amount!!!! On the one hand we have the government waiving off loans of so many individuals and Co operative banks!! Surely the Government can give back to the Indian public what was rightfully theirs !!!!!!
Re: As bad as the Government in Power
by Rajesh Chheda on Nov 12, 2012 05:20 PM
When you invest in any mutual fund, risk is always yours. Unit 64 was a flagship scheme of UTI and those who invested in it made solid returns year after year. when time to book loss had come, losses were booked. No mercy in investment game. Large corporates got out of Unit64 at inflated NAV's and uninformed investors got stuck with below par prices. Still risk is a risk, profit or losses there can be no compensation now
