It amuses me to see people crying on TED and other forum due to recent price crash in some stocks including Paral triggered by sebi order, charges levelled, operator activity and market perceptions. Let me state a few points on investment approach:

1. Small cap investing is inherently risky which calls for appropriate risk appetite & time horizon.
2. When investing in small or micro caps, an investor is better off if he is prepared both temperamentally & financially for 3-4 out of 10 investments going bad.
3. Besides, in small caps one should be prepared for week-to-week volatility of 25-30% or higher, and equipped to handle problem in smooth exits (LC/UC) owing to reasons of liquidity, sentiment, holding pattern, unusual movement or management issues.
4. Those who feel large corporates don't have governance issues need to re-think –rajus, a..., b..., c..., the list goes on & on, and we're not even talking about real estate & liquor companies. One "expert" on TV picked few so-called safe stocks couple of days back due to scams everywhere – one PSU, one Tata group and one MNC. Safety of these too is questionable since we've had issues in PSUs (LIC housing, balmer subsidiary, coal india subsidiary), accounting irregularity in TRF (from tata group), NR tapes etc. Safety tag has fallen off PSU banks too. So rather than panic, investor has to learn to make calculated bets in the given framework.
5. When contributing reasons precipitate and/or business fundamentals deteriorate, losses have to be actually booked instead of dragging. It's simply part of the game. No emotions or sob story required there.
6. If not comfortable with any of (1) to (5) above, it's time to switch to GOI bonds, FDs, and at best MFs because sooner or later, one of these is going to hit you.
7. Alternative next to (6) on the risk scale is restricting to investment universe of large cap index stocks and the so-called safe ones.
8. It is for these reasons we maintain diversified portfolios so that no single setback is too big. Like for someone holding 40 stocks, it's difficult to lose the plot unless there is a huge systemic issue.
9. I am no way suggesting we should not exercise all caution & safeguard in stock selection, and each investment must be compelling enough on its  own legs. Concentration in few stocks generally works only when you're absolutely right, and more importantly proven right, as there are factors beyond our control. Imagine if you were holding large positions in just 5-6 unknown small cap stocks and 3 of them tank for one or the other reason. Portfolio construction & balance assumes importance in small cap investing more than it does in other categories.
10.  If we re-visit (2), by implication remaining 60% stocks should be sufficient to outperform benchmark over a period of few years, if the picks were right in first place, had decent fundamentals and backed by right entry timing and due diligence. I don't care which expert says what about timing, to me it remains one of the decisive factors.
11. Coming back to Paral, should someone holding it for last 18 months be complaining? If not 500%, you're still +200% at CMP, how many fancied great stocks have given that kind of return in same period. And if it doesn't suit one's style, what holds back from booking out.
12. There is certainly more downside to Paral but no surprise if again bounces back 2-3 quarters down the line. If not, it's (1) to (5).

We have no business dealing with Rathod: Dinesh Shahra