Monday, 18 February 2008

Many a faces of exploitation

Not confined to some solitary area or the other, exploitation has many a faces differing from level to level. Exploiter number one is the government itself who does it uniformly on all counts. Be it collection of land revenue, be it levies or be it taxes, every where it surpasses all. Top men in business or the business magnates of middle level have their own system of realising their pound of flesh in typical ways. One such system is to launch an IPO, make huge collections,extend the last date of closing in which process it takes quite a time. Applicants for the shares are not always allotted the number of shares they ask for while applying. If it is a highly rated company, it receives a bumper response from the investers. Here again it takes a long time in sorting and finalising the applications. On finalisation, the company has the choice of accepting, rejecting or partially accepting the request. Some one applies for 225 shares like it was done in the case of Reliance Power, the applicant is proportionately allotted, say 16 shares as against 225. After allotting the shares, the balance amount to be refunded to the depositor is not remitted back to him for a long time. By the time it is done, the gap grows to several weeks during which period the entire amount so collected in millions/billions of rupees remains with the company on

which they earn returns in several ways without any slightest possible portion of it going to investors. Delays are often intentional obviously for the reasons to earn an extra monetary edge. Companies dealing in Mutual Funds do the same thing. Accepting applications with immediate deposit by investors putting and keeping it in their accounts and delay the finalisation. I opted for a Mutual Fund investment with small amount and even after enough of gap I have not received in the necessary acknowledgement. Certain IPOs collapse at the outset itself but the investors have to wait for refund of their deposit for several months if at all they are lucky enough to get back the investment amount without resorting to litigations. It is possible to understand direct levies and taxes but difficult to make out any reasoning for hidden earning on disclosed profit transactions.

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