Sometime in 1994 a friend wanted to keep some money in a fixed interest bearing instrument. The amount was about Rs. 15000.

He kept it in one company – let us call it Company A. Sometime in 1999 I was surprised to see that he still had his money there. I told him and his wife that they should remove the money because the concept was a little flawed and therefore risky. He did not remove the money. Told him 5-6 times, and he kept postponing – OUT OF SHEER LAZINESS I guess.

In 2010 it came up for renewal, he still renewed it. I found out completely accidentally that he still had his money there. In 2013 it is still in that company!

I only hope that the company pays up the amount on the day he wants it – I mean on the date of the maturity.

Here was a transaction where I had NOTHING at stake. The amount was reasonable in 1994 but in 2013 it looks small – thanks to inflation I guess!

I was not making brokerage, fees, nothing. I know the promoter – and am not too proud about knowing him either.

The worry is Advising people without knowing how they will use the ‘gyan’ is inherently so dangerous!

What happens if the company fails to repay the amount? or delays the payment?

Suddenly my number will be pulled out and desperately I will be told ‘My money is stuck…can you help’ …to a more accusing ‘You only asked me to invest’ or ‘You know the promoter….’

So a disclaimer once again, if you read something on this blog and take some action, it is at your own risk. If you invest in a multi bagger, keep the gains. If you invest in a dud, that is also yours.

Time and again I keep talking about certain scrips and it is for you to decide what you want to do…..buy the shares, buy Futures, buy it in Options, or go short.

I have nothing to gain either way. Nothing to lose eitherway. So all the best, do whats best for you!