Information & Investor
cc: internet source
A report has been released by the short selling (Buys
at low and sells at high) & research company that created panic in entire
markets in India and led to a sharp fall of share prices eroding the wealth of
investors and left them in uncertainty. The research work of the short-selling company is yet to be investigated and facts need to be verified and violators must
be punished but the report has done enough damage already before everything.
The storms in the markets are not new. Share markets
are known for their volatility and risk but they are caused based on the
information available in the public domain. Indian markets are emerging after COVID-199 there is an increase in skyrocketing numbers of retail investors, sudden
fall of markets leaves them with no option. Such public issues need to be addressed
and the potential information which can create high volatility need to regulate.
For that, there is a need for a jurisdiction body needs to verify the information that can influence the markets and create
panic. In this WEB3 world information has become easily accessible there is
wide scope for misinformation, Disinformation that’s where the present market
regulators need to either expand the jurisdiction or creation of new bodies that
need to have robust surveillance on market-related information in the public
domain. As India has very low financial literacy there is a great need for such
bodies.
Over the years the trading patterns, holding stocks, and brokerage have changed the new norms like KYC liking to the d-mat accounts played important role in preventing the manipulation in markets. The present allegations by Hinden-Burg report on Adani raise the question about the SEBI functions, especially on the accounting systems and audits are a concern not only to the investors but also to the Indian markets globally. It's necessary to be investigated and proper assignment should be made.
The matter is all about protecting the investors i.e.
independent lives that should not be disturbed by allegations and market sanity
must be protected. As part of the state's responsibility, the investors must be
proactive and should not move for the noise. Companies also must be aware of
information about their first in the public domain and respond appropriately to
protect investors.
---------Views expressed are personal
MANTHATI SAI KIRAN
