THE failed takeover of garment manufacturer Tungtex (Holdings) continues to anger investors who found themselves under-protected by regulations. Disgruntled investors who lost money after the takeover bid by Charter View Holdings sent letters challenging the integrity of the Securities and Futures Commission's (SFC) monitoring and regulatory system. Charter View, with merchant banker Goldwyn Capital, made an unconditional cash offer in April to buy 50.01 per cent of Tungtex's shares at $1.50 a share. The offer represented premiums of 49 per cent to the stock's closing price of $1.01 on April 10 and 70 per cent to its net asset value of 88 cents on March 31 last year. After dragging for three months, the deal fell through. Investors who bought Tungtex's shares saw their investment shrink as the share price dropped on news of the failed bid. Some had bought the shares at a high of $1.465. Besides blaming the SFC for lax regulation, investors questioned whether inspection of Charter View's financial resources had been made. A source said that since the Takeover Code did not have statutory backing - the SFC had no power to force the party to carry out its obligations. 'We are very limited in what we can do in this regard,' the source said. Investors may be able to get redress under the Investor Protection Ordinance Section 8. It says any person who by 'any fraudulent, reckless, or negligent misrepresentation induces another person to enter into any agreement' to buy or dispose of securities is liable to pay compensation for any pecuniary loss. The SFC has said it was looking into why the deal failed and whether investors were to receive compensation. Meanwhile, Charter View is seeking the return of $19 million from Tungtex as deposit placed in the takeover offer.