Where are the unclaimed 95,022 unit shares gone ????

Recently the auction of Prabhu bank has been concluded where over 1400 applicants had placed their bids. The company had auctioned a massive 22.31 lakh unit shares to the general public at a price Rs 100 or above. But to a surprise, the auctioned units were 95,022 units less than the unclaimed right shares.

As per the provisions, if a company float right shares and the shares are unclaimed by the end of specified date, the unclaimed shares needs to be auctioned among the general public. But in case of Prabhu Bank, there were around 23,26,287 units unclaimed right shares that were supposed to be auctioned after 40% right issue. However, the company brought only 22,31,265 units for auction. Now the question arises, where are the unclaimed 95,022 unit shares ????

The scenario is not new, in case of auction of Neco Insurance the auctioned shares were 7,320 units less than the units supposed to be auctioned.

The above mentioned difference though maybe small, but have not failed to raise numerous questions. When asked to the issue manager of one of the company, the missing shares were said to be claimed by one of the institutional investor who missed the right issue. The shares were alloted after the approval from the regulatory board, they added. 

If the answer given by the issue manager official was correct, how can the regulatory board work in favor of Institutional investors only ???? If so, any retail investor missing the right share should be allowed to apply for the same. The rules are supposed to be same for both big and small. 

If the issue manager companies haven't done anything wrong, why is the difference between the auctioned shares and unclaimed shares not made public ????

With this article, team NepseKhabar strictly raises voice against the serious mistake.