MIcroCap Stories

Techno-fundamental investor with a passion for research on less explored micro/small caps(LT). Seen many phases of markets. Not SEBI reg. For learning only.

[Vijay Kedia @VijayKedia1]

Respected @nsitharaman ji and @FinMinIndia ,

Suggestion 1 of 3 for strengthening India's capital markets:
Long-term capital gains tax on listed equities should be abolished.

A long-term shareholder is not a speculator but a provider of patient risk capital. By investing in and holding businesses, investors help companies expand, create jobs, innovate and contribute to India's economic growth.

India requires enormous amounts of long-term capital to build world class enterprises, infrastructure and global champions. Tax policy should encourage households to move savings from passive assets, including imported stores of value such as gold, into productive businesses that create jobs, generate tax revenues and build national wealth.

The appreciation in a company's value is not created in isolation. During its growth journey, the government already collects corporate tax, GST, income tax from employees, customs duties, stamp duties and numerous other levies. Long-term capital gains are often the final outcome of economic activity that has already generated substantial tax revenues.

Most importantly, tax policy should clearly distinguish between investment and speculation. A long term shareholder is a partner in wealth creation, not merely a participant in market transactions. Tax policy should reward long-term ownership of productive businesses and distinguish it from short-term speculation.

India needs more patient capital, more entrepreneurship and more long term investing. Abolishing long-term capital gains tax on listed equities would be a powerful step in that direction.

Respectfully submitted.

[The Billionaire's Club @croreclub]

Welcome to The Billionaire's Club 🥂

[MIcroCap Stories @MicrocapStories]

@croreclub Happy to be a part of this wonderful group, and to share and learn from like minded members; all within the regulations

[MIcroCap Stories @MicrocapStories]

@Anirudh05302912 thank you Anirudh

[MIcroCap Stories @MicrocapStories]

Diwali Picks for 2025 ( 18-24 months view )
[ Multibagger Potential ]
---------------------------------------------------------
1. Vikram Solar
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cmp 334.75 ( IPO price 332 rs),
non sme , market cap 12,108 Cr

Incorporated in 2005, Vikram Solar Ltd manufactures solar PV modules and also provides EPC and O&M services.

VSL is one of India’s largest pure-play solar
photovoltaic module manufacturers in terms
of operational capacity

Undertaking massive capacity expansion to transition into a Solar Cells+ Modules player with plans to also add BESS manufacturing capacities. It has a very healthy order book as well, giving good revenue visibility going ahead.

Investor Presentation:
https://t.co/3vfH7Jpckf

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2. Esconet Technologies , cmp 222 , NSE SME
--------------------------------------------------------
Incorporated in 2012, Esconet Technologies Ltd is a system integrator in the IT infrastructure, cloud computing, managed services and data security sectors.
Esconet Technologies has evolved into a comprehensive technology solutions provider —serving as a trusted advisor, manufacturer, system
integrator, and managed services partner.
Over the years, the company has strengthened its product portfolio through strategic technology tie -u ps with marquee partners, enabling it to deliver robust, future -ready solutions to its clients.

Company launched its own HexaData brand of high-end Servers, Workstations and storage systems in collaboration with NVIDIA. It provides Infrastructure for Artificial Intelligence & Machine Learning, and is used in products like Super computers, Servers, Workstations and Data Storage.

Areas of Expertise:
a) Data centre - Servers, Storage, Virtualization, Network
b) Hyper converged Infrastructure
c) Cloud - Public, Private & Hybrid
d) Data Availability Solutions
e) Cybersecurity
f) Custom Application Development & Delivery
g) Digital Workspaces
h) Infrastructure for AI/ML

STRATEGIC ACQUISITION – STRENGTHENING CYBERSECURITY CAPABILITIES
• In Current FY Esconet acquired 70% stake in Fluidech IT Services Pvt. Ltd. (FISPL) through Share Purchase and Share Swap Arrangements to enhance
Esconet’s presence in the rapidly growing cybersecurity segment.
• This acquisition significantly enriches the company’s cybersecurity offerings, positioning Esconet as a key defender of digital assets for enterprises & critical infrastructure.

Esconet Trchnologies Investor Presentations:
https://t.co/HbGD61Cl8c

https://t.co/OjqRSm5vTe

Considering present market volatilies in the backdrop of the current macro economics and geo political scenarios, i personally would prefer to keep a 15-20% SL in microcaps and SME stocks in general nowadays, from investment entry levels, though i have mostly not been in the habit of keeping SL for long term multibagger potential buy and hold type investments, as opposed to positional swing trades where SL becomes necessary for proper risk management and position sizing.

As such 20% would be a good SL for Esconet from cmp , and 304 levels would be a good SL for Vikram Solar.

Note/disclaimer : for educational purposes only, shouldn't be construed as investment advise in any way. For investment in markets, please consult a registered investment advisor

[MIcroCap Stories @MicrocapStories]

@LordLucifer729 yes , being sme stock , it has minimum lot size

[MIcroCap Stories @MicrocapStories]

Purchasing value erosion in value terms 20 years down the line, as per a retirement planning fund.
10 years ago, monthly expenses of 30,000 rs in today's terms is Rs 48,867.
10 years later it would go up 62.89% to 79,599 Rs
20 years from today, would be up 165.32% 129,658 Rs
!!

[MIcroCap Stories @MicrocapStories]

t

[Sandeep R | Microcap Alpha @investor_sr33]

SEBI & NSE have updated the ESM Stage II rules effective 28 July 2025.

Now, a stock must show both abnormal price surge AND extreme valuations (loss‑making or PE > 2× Nifty500) to be moved to Stage II.

Fundamentally sound SMEs are protected.

[Aadesh jain @adeshjainj]

Long Post Alert:
🙏 A big thank you to @yatinmota for taking up the concerns of retail investors directly with the SEBI Chairman during the recent press meet.

By raising the issue of genuine small-cap companies (under ₹1000 Cr) being unfairly impacted by ESM rules, you gave voice to thousands of investors. 👏

🧕 Let’s unpack what this is all about — the ESM framework, how it works, what’s good, what’s broken, and what needs to change:

🔍 What is ESM (Enhanced Surveillance Measure)?

- Introduced by SEBI in June 2023 to curb manipulation in illiquid small-cap stocks (< ₹500 Cr)
- Expanded in Oct 2024 to cover all stocks < ₹1000 Cr including SMEs
- Aims to protect retail investors from volatility and speculative pumps

⚙️ How Does It Work?
👉 Stage I
🔹Trigger: Different price movement calculations and below 1000 crore.
🔹100% margin requirement
🔹T+2 implementation
🔹Stock flagged as “under surveillance” & Monitored for escalation to Stage II

👉 Stage II
🔹Triggered if stock rises 15% in 5 days or 30% in 1 month when in Stage 1
Stock is moved to Periodic Call Auction mode:
🔹 6 auction windows per day (1-hour each)
🔹 2% circuit filter
🔹 No continuous trading
🔹 Still 100% margin
📈 Minimum 90-day lock under ESM — even if volatility reduces.

✅ Intent is Good
Yes, speculative activity in small caps must be monitored.
Yes, retail needs protection from pump-and-dump operators.
But the current implementation is punishing growth and confidence — not just speculation.

📌 It's also important to recognize that manipulations and governance issues are not limited to companies under ₹1000 Cr market cap.
Even large and well-known companies have seen instances of wrongdoing.

So, applying stringent restrictions only to smaller companies may not be fair or effective from a market integrity standpoint.

🚨 Where It’s Failing:
🔸Only Upward Movement Gets Flagged
📉 No action when stocks fall 50–70% in lower circuits
📈 But a 15% or 30% rise? Straight to ESM 2 & Periodic Call Auction
⚠️ Stocks can keep falling in ESM-1 — without restrictions
🔸Periodic Call Auction Cripples Liquidity
HFTs game auctions, retailers panic seeing shallow order book.
Many don’t even know auction timings. Orders get trapped.
🔸No Price Discovery
Tight 2% band even on strong news or earnings = market inefficiency.
🔸Perception of Guilt
Being in ESM = “risky” even if nothing is wrong fundamentally.
🔸Companies Struggle to Grow
Valuations get artificially suppressed, impacting fundraising and expansion.
🔸Fundamentals Are Ignored
EPS doubles, orders surge, and stock rises? Still punished.
🔸Structural Advantage for High-Frequency Traders (HFTs)
Due to their direct exchange connectivity and faster infrastructure, HFT players often gain queue priority during time-sensitive Periodic Call Auction windows.
This edge has been seen even during SME listings with capped gains — where early access translated into better execution and allocation compared to retail.
🔸Order Book Distortion During Auctions
Sophisticated participants use algos to place and cancel large orders right before auction close, making the order book look artificially strong or weak.
Retail investors react emotionally to these false signals, distorting true price discovery.

📈 Why do small-cap stocks move suddenly and sharply?
Because they’re small.
A promoter often works tirelessly for months or even years to land a single large order, partnership, or tender.
And when they finally succeed — the impact is immediate.
In many cases, the size of that one order is equal to the company’s entire market cap.
So naturally, when that news is disclosed publicly, the market reacts.
Buying surges. The price moves.

🧰 These aren’t large companies doing steady business every day.
These are SMEs who grind for 30 days to land something big on the 31st — and that breakthrough justifies a sudden re-rating.
But today, that success often triggers ESM restrictions — penalizing both performance and ambition.

📌 Also, there's a clear disconnect we need to address:
On one side, the government is actively promoting MSMEs — offering PLI schemes, awarding tenders, encouraging growth with lot of incentives for Make in India
But when an SME receives such an order and discloses it to the exchange, the stock often rallies — only to be immediately flagged under ESM.

This traps the stock, freezes price movement, and prevents the promoter from raising funds at the right valuation — funds that may be needed to execute the same government-backed project.
Isn’t that counterproductive?

💬 As a retail investor, I fully support strong regulation.
We want SEBI to catch manipulation — whether in stock price, books, or promoter behavior.
We want early warnings to avoid losing hard-earned money.
But that protection must come based on substance, not just price movement.

📅 Let’s not assume every price rise = manipulation.
These are small companies with small denominators.
Even a single order or contract can change the company’s financials overnight.
When they grow 50–100% YoY, the market wants to reward that growth — and that’s why we invest in small-caps in the first place: for the risk-reward.

📉 Yes, they can fail — and that’s fine.
🚫 What’s not fine is Financial or Fundamental Wrong Doing. And that's where SEBI must act — whether or not the stock is in ESM.

But the current framework:
⚠️Punishes genuine growth
⚠️Labels every sharp rise as “suspicious”
⚠️Demotivates promoters who are finally seeing their years of work bear fruit

💡 Suggestions for a Better Framework:

⚖️ Make ESM bi-directional.
Add tighter rules when stocks fall 30–40% rapidly too — not just for upside.
🔄 Replace Periodic Call Auction with full-day trading.
Keep stocks open for regular trading under tighter 2–5% bands.
Periodic Call Auction favors algos/HFTs and confuses retail participants.
🔒 Keep all stocks in Trade to Trade.
This kills intraday speculation while maintaining liquidity.
📉 Ditch the 10–20% band flexibility.
Stay with permanent 2% or 5% bands for consistency and discipline.
🔓 Enable early exit if volatility stabilizes.
No point keeping fundamentally strong stocks locked for 90 days.
Don’t punish real growth. Blend price action with fundamentals like EPS, revenue growth, promoter holding, etc.
📣 Transparent communication.
Announce clear reasons when a stock is flagged under ESM — builds confidence.

If Periodic Call Auction is not removed then these suggestions are crucial as well:
🧲 Address HFT Advantage in Periodic Call Auction.
Introduce randomization or fair queueing to prevent HFTs from exploiting their infrastructure edge. Retail participants deserve equal access both for entry and exit.
📈 Prevent Order Book Manipulation in Auctions.
Impose limits on last-minute order cancellations and place strict checks to prevent artificial order book depth that misleads retail. (or)
◻️ Adopt Pro-Rata or Lottery-Based Allocation in Periodic Call Auction.
Replace "first-come-first-serve" execution with lottery or pro-rata allocation at each price point. This levels the playing field and reduces bias toward faster systems used by institutional players.
⏲️ Randomize Auction Close Timings.
Similar to IPO listing time randomization, introduce randomized closing windows for each Periodic Call Auction session. This disrupts algorithmic timing tactics and preserves integrity of the price discovery process.

📅 In Summary:
We support surveillance — but it must be smart, balanced, and fair.

Let’s catch wrong-doings and manipulators, not penalize genuine companies for growing.
Manipulations happen across market caps — restricting only sub-₹1000 Cr stocks isn’t equitable.

Let’s build a framework that protects investors, rewards performance, and strengthens trust in our markets.

We, as investors, stand aligned with SEBI’s intent — we only seek thoughtful execution.

Let’s stop financial wrongdoing — and support India’s next wave of growth stories. 💪📈

🙏 Once again, thank you @yatinmota for asking the right question at the right time.

We hope SEBI acts with balance and clarity.
The investor community is watching — and hopeful.

[RajStockWatch @RajStockWatch]

📰Breaking News: India’s only listed robot maker, Kody TechnoLab’s shares blocked by NSE from Regular Trading
28.03.2025, Mumbai. Tags: #SEBI #NSE #BSE #ESM #ESM2 #pcaga

In a surprising action, the National Stock Exchange (NSE) has placed India’s only listed robot maker, Kody Technolab’s shares under Periodic Call Auction and terminated regular, day trading, possibly due to inadvertent triggering of surveillance mechanism. Periodic Call Auction (PCA) is a tool rarely used by SEBI, to stop price manipulation as and when detected in ILLIQUID stocks. PCA was framed by SEBI in 2013.

A quick review of price chart of KODY TECHNOLAB shows, price has actually fallen deeply from Mid January 2025 when broader market started to correct. Rather than price manipulation, it is noted, the stock has badly corrected from around Rs.1600 in Mid January to Rs.900 in line with correction in small cap segment.

As per NSE website, the stock was placed in Stage 1 of Enhanced Surveillance Mechanism (T2T with 5% Price Band and 100% Margin) to reduce volatility. However, the price continued to fall, naturally, with the market correction.

When the broader market reversed few days ago, Kody Technolab’s shares also reversed. And within a week of such reversal, NSE has suspended regular day trading, in the stock hampering natural Price Discovery. The Market Cap of the Stock is around Rs.1200Cr.

Social Media is abuzz with stories of scores of other stocks (Eg: TEERTH GOPICON, OSEL DEVICES, MACFOS, EMMIL, RUDRA GAS, DRONACHARYA and SA TECH etc) which have also been suspended from regular trading, in the last few days, by Exchanges and placed under PCA scheme, designed for only manipulated stocks.

On reaching out to the sources in the above companies, we are told they are shocked, since neither Exchanges nor SEBI has issued any prior notice before suspension of Regular Trading. They said there is no reason why the stocks should be designated as ILLIQUID since regular trading has been going on smoothly. Only after Exchange suspended Regular Trading, Liquidity has crashed.

“There is absolutely no question of any manipulation, since price of stocks has been correcting, in line with broader market correction, from Middle of January. We hold Exchanges solely responsible for damaging Liquidity” they said.

A quick look at Social Media posts show, investors are totally out of their wits, since they are unable to trade when most needed, due to lack of liquidity caused by the action of Exchanges. Investors seem to be alarmed at the serious drawbacks in the ESM Framework, imposed by SEBI, on under Rs.1000Cr Microcap stocks, which form more than 50% of the listed universe. They are expressing their position to move totally out of under Rs.1000Cr market cap spectrum, due to extremely damaging and defective regulatory action by SEBI. This is likely to impact fresh listing and trading of MSME stocks, totally contradictory to the policies of the Central Govt.

Investors point out, the recent question addressed to SEBI Chairman by Mr. Yatin Mota (@yatinmota) of CNBC AVAAZ where he highlighted that the ESM Framework is like a fishnet catching all stocks, without any verification for illiquidity or manipulation. This according to him has seriously hampered Price Discovery in the microcap cap segment.

On X (formerly Twitter), investors are seen grouping together and submitting complaints to SEBI about the serious errors and contradictions in the ESM framework. They are banking on SEBI Chairman, Shri Tuhin Kanta Pandey to carry out an ACCELERATED REVIEW of the ESM Framework, as confirmed by him in his response to Mr Yatin Mota.

Located in Gift City, Kody Technolab is a pioneer in robotics research, development and manufacturing company, specializing in autonomous robots like smart serving, surveillance and heavy-duty cleaning robots. The unusual and unexplainable action on MSME stocks, by Exchanges which are already badly impacted due to market correction, has severely impacted their ability to raise funds and expand their operations. Companies express serious concern about SEBI working in contradictory direction, vis a vis Modi Govt’s Make In India initiative.

SEBI and Exchanges have been contacted seeking their response to the story and the same will be published here, if and when responses are received.

Published on X 28.03.2025 at @rajstockwatch

🔸For wider reach click, LIKE & RETWEET. .../2

[Ali Azar @MrTalkStock]

📈Is the new SEBI Chief good for #StockMarket ?

Please watch the video to get my view

📊My One Request for Mr. Pandey: Revisit the ESM Regulations

What is ESM (Enhanced Surveillance Measure)?

A regulatory framework introduced in June 2023 under stewardship of Madhabi Puri Buch. It places strict trading restrictions on small-cap stocks

Initially for companies under ₹500 crore market cap, later expanded to ₹1,000 crore in August 2024

✅Once a stock falls under ESM, it faces:

👉Trade-to-trade settlement (no intraday trading)
👉Tight circuit limits (5% in Stage 1, 2% in Stage 2)
👉Higher margin requirements
👉Reduced liquidity

✅For a stock to be placed under ESM, it must display:

👉High volatility in a short period
👉Abnormal trading patterns
👉Less than 25% public shareholding

✅Why this needs review:

👉Many fundamentally strong small-caps are unfairly restricted
👉Reduces market participation in promising companies
👉Creates artificial liquidity barriers for genuine investors
👉Punishes small companies trying to grow

Mr. Pandey, while your consultative approach is refreshing, my specific request is to reconsider the ₹1,000 crore threshold set by your predecessor, and focus ESM on truly problematic stocks rather than blanket restrictions based primarily on size

Small-caps are the growth engines of tomorrow's market - let's protect investors without stifling legitimate investment opportunities!

[MIcroCap Stories @MicrocapStories]

@rajuidesai I'm in

[Rajeev Desai @rajuidesai]

I am in!!
All who read, don't become a spectator.
Repost saying, I am in!!
Don't be look like fool!!
I want all " LIKE", "REPOST" it and write " I am in!!"
Don;t you understand we need to talk on ESM?

[RajStockWatch @RajStockWatch]

SME stocks are hurtling nonstop to bottomless pit. No use of having good or bad stocks . All are equal. Possibly, the artificially created ESM2 issue (@SEBI_India ) which will not allow recovery of SME stocks, when rest of the market moves up, is playing in the minds of people forcing them to sell? Big fall: Jay Bee, Thaai Castings, Owais, KODY, etc...around 10% or above. And most others 5%.... Tough situation for SME investors.

[Ashish Chaturvedi @Ashish_4vedi]

SEBI clarifies: 1994 का केस है.
Named officials weren’t holding positions that time.

[Ali Azar @MrTalkStock]

🤔WHEN WILL STOCK MARKET CRASH STOP

❌❌❌HISTORY OF NIFTY CRASHES IN LAST 25 YEARS

1️⃣ DOT COM BUBBLE

👉Price Correction of 52% in 19 months
✅ 11th Feb 2000 - 1,772 points
🔻 21st Sep 2001 - 850 points

👉Time Correction of 2.3 years before it made new highs above 1,772 points

2️⃣ GLOBAL FINANCIAL CRISIS 2008

👉Price Correction of 59% in 10 months
✅Jan 4th 2008 - 6,274 points
🔻Oct 28th 2008 - 2,584 points

👉Time Correction of 2 years before it made new highs above 6,274 points

3️⃣ Crash of 2015 - 16

👉Price Correction of 22% in 4 months
✅ 5th Mar 2015 - 8,938 points
🔻12th Feb 2016 - 6,981 points

👉Time Correction of 13 months before it made new highs above 8,938 points

4️⃣ Crash of 2018 - 2019

👉Price Correction of 14% in 2 months
✅ 31st Aug 2018 - 11,680 points
🔻26th Oct 2018 - 10,030 points

👉Time Correction of 12 months before it made new highs above 11,680 points

5️⃣ COVID Crash of 2020

👉Price Correction of 35% in 2.5 months
✅ 17th Jan 2020 - 12,352 points
🔻3rd Apr 2020 - 8,084 points

👉Time Correction of 7 months before it made new highs above 12,352 points

6️⃣ Crash of 2021 - 22

👉Price Correction of 16.60% in 8 months
✅ 14th Oct 2021 - 18,339 points
🔻17th June 2022 - 15,294 points

👉Time Correction of 11 months before it made new highs above 18,339 points

7️⃣ Current Crash of 2024 - 25

👉Price Correction of 14% in 5 months
✅ 27th Sep 2024 - 26,180 points
🔻We are currently at 26th Feb 2025 - 22,578 points (maybe little more to go 🤷🏻)

👉Tell me in the comments how long you think Time Correction will last⁉️

🚨Conclusion: While the Dot Com Bubble, Global Financial Crash, & Co-Vid Crash were major events for our stock market, this current crash doesn’t resemble them!!!

It’s more like the crashes of
🔸2015 - 16
🔸2018 - 19
🔸2021 - 22

So, hold on, Price Correction is almost done. Time Correction phase is much better!!!!

#StockMarket #investing

[Sandeep Singh @Alchemist1320]

Dear SME managements,

Please understand tide has changed.

1) While regulation requires only half yearly results, around 10% SME companies give quarterly results and another 20% give logical neutral tone business update (with at least quarterly sales numbers)

2) Majority of investors are tired and even scared to hold companies where there is often slip between walk and talk.

3) Trust investor’s acumen to appreciate cyclicality and one off. That should not be a reason to hold back business updates.

4) Quality over quantity so no more one side MoU and only positive disclosures. Simultaneously disclose any major challenges as well. Do regular investor calls which are open for all.

If mainboard can do it so can SMEs.

Show early on that excellence is not a compulsion but a choice for you !

[Zafar Macha @Maaachaaa69]

Intermittent Corrections are part & parcel of market which has to only go up in long term. Even in dream bull run of Indian market of 2003-2007, Index corrected 5-10 % for more than 9 times and Index corrected more than 15% on several occasions during the period from 2003 to 2007. Specifically:

2003: The market fell 14%.
2004: The market fell 27%, with a notable crash on May 17, 2004, where the BSE Sensex fell by 15.52%, marking its largest fall in history in terms of percentage.
2005: The market fell 13%.
2006: The market fell 29%.
2007: The market fell 15%.
Stick with good growing small/midcap stock and ignore all noise around inflation , budget , import Duties and NAREN this point of time