Share News: 7 lakh small investors bought shares, now trading is restricted, is the money stuck?:

News Topical, Digital Desk : Amid the recent surge in Reliance Infrastructure shares, a significant warning has emerged. The company's shares have been tagged "Trading Restricted." Significantly, retail shareholders hold approximately 23% of Reliance Infra's total market cap. This means millions of small investors could be directly affected. Therefore, it's crucial to understand the meaning of "Trading Restricted" and the extent of the risks ahead.

Why is Reliance Infrastructure Trading Restricted? IRP Stage 1 is applicable to Reliance Infrastructure shares due to IBC (Insolvency and Bankruptcy Code)-related issues. Consequently, the exchange has restricted trading in the stock. The meaning is clear: trading in this stock will no longer be completely free; instead, transactions will be possible only under certain conditions and limitations. Reliance Infrastructure Share Performance : One-week gain: approximately 27% One-year return: approximately 40% All-time high: Rs. 2,641 All-time low: Rs. 8.65 Current price: Rs. 173.20 These figures clearly indicate that the stock has seen significant fluctuations. At one point, it was in the thousands, then it almost reached the brink of collapse, and now it's rebounding.

FII activity is a cause for concern. FIIs have been selling shares continuously since March 2025. Their stake has fallen from 11.35% to 7.08%. The rally is certainly strong, but when foreign investors are constantly exiting, this rally is not considered entirely reliable. While it may be an opportunity for short-term traders, long-term investors should carefully consider business fundamentals and debt status.

Retail Shareholders Have a Large Stake - Retail investors have a significant stake in Reliance Infra. Retail Shareholders: 693,279 Total Shareholding: 94,411,973 Shareholding Value: Approximately ₹1,640 crore Share in the Company's Market Cap: Approximately 23%, meaning the money of approximately 700,000 small investors is stuck in this stock. Trading restrictions may limit these investors' liquidity and exit options.

Why the risk despite the stock's rise? In the recent session, the stock rose nearly 5% to close around ₹173, but this rally appears to be more technical and speculative than driven by fundamental strength. It's worth noting: A 5% price band is in effect on the stock. The Upper Circuit is around ₹173 (as of December 22, 2025). EPS and ROE are negative. The company has previously been involved in the IBC process. In such cases, the faster the rally, the more dangerous the fall can be.: Sudden buying and selling can be difficult. Exiting in times of need can be difficult. Low volumes pose a risk of price manipulation. Those trading based on rumors can suffer significant losses. Trading Restrictions in Reliance Infrastructure is a serious red flag for retail investors. While the stock is showing gains, regulatory and structural risks are significant. In such stocks, safety is more important than "rise."