The Bombay Stock Exchange's move to delist nearly 100 companies for non-compliance of several norms has left thousands of retail investors with little option to pull out of these firms.

The BSE on Wednesday put out a list of 97 companies spread over Andhra Pradesh, New Delhi, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.

Sources said trading in these companies had been suspended for over five years. The exchange has issued showcause notices to them which were unanswered.

Retail investors, who entered into these counters, without delving with their fundamentals, were hard hit by the BSE decision as they will find it difficult to dilute their holdings now. Most affected were investors in Maharashtra.

A senior stock broker said delisting of, say, a Kolkata company from BSE would still open exit route to a local investors through the Calcutta Stock Exchange. But a Mumbai company, which invited BSE wrath by not replying to the showcause notice, is unlikely to be listed with other exchanges.

However, broking community welcomed the BSE move. They said the stocks being barred from BSE were essentially "jama kharchi" companies and some manufacturing companies either under the BIFR net or sick companies.

They added that a handful of greedy investors always locked in the "jama kharchi" companies lured by the fast price appreciation.

"Jama kharchi", a coinage widely circulated in the markets, served two kinds of investors. One, who wanted to evade tax through incurring loss on their papers and two, the group intended to concert black money into white by registering profits.

For instance, there were a large number of "jama kharchi" counters active on Lyons Range and the possibility of retail investors being hooked with them was very high as price appreciation on these counters was very attractive.

The list included Murari Investments and Trading,  Parbati Holdings, Quest financial Services, Samtel Colour and Shardaraj Tradefin.

Maharashtra topped the BSE ban list with as many as 24 companies barred from the exchange while 17 Gujarat firms were present in the list.

In addition, 17 from Andhra Pradesh, 14 from New Delhi, 13 from Andhra Pradesh, 10 from West Bengal, six each from Madhya Pradesh and Tamil Nadu, two each from UP and Punjab, one each from Orissa and Haryana were there in the list.

Trapped?

• Trading in 97 companies has been suspended for over five years.
• Retail investors, who entered into these counters, without delving with their fundamentals, will find it difficult to dilute their holdings now.
• The most affected are investors in Maharashtra as 24 firms from the state are there in the list.