In response to a statement made by BJP member that there is all possibility of terrorist funding share market Mr. P Chidambaram assured the Parliament that it is closing monitoring the activities of share market through SEBI and they are keeping watch on a person who is suspected to have used the booming Indian share market for terror funding.
Here the main question is whether the sudden jump in share prices of a few stocks are justified in view of their fundamentals and general trend of the market?
There are some such stocks which have seen more 100 percent growth during last three four months .There may be definitely some terror funds in disguise of investor or broker who are manipulating the rise or fall in the stock prices. Such manipulators are most probably through FII/PN route. A person or a group of some FIIs who have unimaginable large capacity of idle fund can only imagine of manipulating the stock prices as per their sweet will.
In the days of Mr.Harshad Mehta, any stock which he liked could see jump in prices by 1000% or more. We still remember how the prices of M S shoes rose to 600 and more and then after the exposure of the cam fell back to below 10 levels. Similarly the prices of Pentamedia and Silverline went up to touch the sky and after the scam exposure such scripts touched the rock bottom very soon. And these equities are still being quoted below 10.
The same or even dangerous situation is now prevailing in the stock market. The present state of affairs poses a serious threat to innocent investors and small traders. Because the scale of rise in some selected stocks is so high that even the record of Harshad Mehta has been broken. The bitter truth is that all experts have expressed their deep concern over the sharp rise. Still when prices continues to rise for some time experts treat the sharp rise as normal and say that the market is under consolidation phase.
Here it is worthwhile to mention here that when a few big companies shows sharp rise there is parallel effect on other stocks too. Even the prices of T-segment or Z category shares start going up .As a consequence market develops faith in the rise and start fresh investment in the market at higher prices. When real exposure of scam will take place market will see unprecedented fall and victimize several small investors/traders. Brokers and high net worth terrorists or groups of FIIs or individuals like Harshad Mehta enjoy much when market gives signals of faith at higher level. These unscrupulous people through their unscrupulous brokers start selling their Stock of shares slowly and go out with high profit in their hand.
Unfortunately scam after scam takes place in every decade and the government always fails to nip in the bud. SEBI is rather silent spectator of all spectacular rise or movement in the prices of shares of some companies. When the scam dies a natural death or faces sudden exposure, all so-called experts will say in one voice that they had alerted the government as well as investors long ago. It is usual phenomenon in our country. After all terror attacks it will be reported hat IB had alerted the government long before the incident. In our country police reaches the spot only after the thieves or dacoits or rapist commit the crime and fly away. It is all because in most of such abnormal transaction or happenings of crime the controlling system works in collusion with the crime perpetuators.
As such the debate in Parliament should not be confined to the walls of the parliament. There must be meaningful discussion on all vital issues in the democracy. But the real purpose will be served only when there is action on the findings of such debates.
True report will precipitate only when there is respect in the heart of ruling party for the parties who are opposed to it. Similarly leaders of opposition parties are expected to oppose not only for the sake of opposition but in the interest of general mass of the country. Intelligent Indians know very well how Parliamentarians have been befooling the voters on the issue of Garibi Hatao, NAREGA, and quota for woman or reservation in private sector or educational institutes or utility of nuclear deal. Our leaders believe in slogan and inauguration only and unfortunately our voters are also swayed away by their mischievous postures and trapped in their net for five years.
Danendra Jain
e-shares.info
5th December 2007
Published: December 05, 2007
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