Information & Investor

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