Writing this without any views or going into the merits or demerits of the action by broking firms!!!!!
Just my view that we most of the time take view only after the events in the market!!!!
Hello Dada, Be very fair and ask yourself, were we not calling the shares at garbage rates on 18th Sep. when the Nifty was around 3800 mark and had come down from 4550 on 8th Sep. And more people complained when it went upto 4300 on or about 22 Sep.
Now we are calling the shares are at lowest at ~3200 levels only as available at garbage rates becoz we are anticipating this to be the bottom!!!
Just imagine what would my friend say about broking houses whose big chunk of shares was liquidated on or around 23rd Sep. as his Mark to Mkt fell short!!
He is simply overjoyed!!!! The Nifty was around 4200 levels then, he is candid in accepting that had his broking house not liquidated he would still be holding on to his shares even after a fall of 1000 nifty points!!! He would be fuimng with anger had the mkt gone up from there!!!
You may be proved correct and the present may be the near term bottom but logically it would be correct to say that if we buy now in a falling markey we in fact are trying to catch the 'falling knife'!!!!
On 21st /22nd Jan. 2008a very large number of people were having the same complaint when the market hit the lower circuit that their brokers did not allow them to buy, I though I was lucky to have bought some very good shares at really juicy price.....well dada, my portfolio is down by around 38% and now I think it would have been better had my broker also not allowed me to buy!!!!
Normally these actions are for safeguarding and not for their personal gains!!! There may be unscruplous brokers but my view is majority are fair either by choice or by compulsion due to SEBI norms and NSE guidelines!!!
This is not to defend the action by brokers , after all its our money and we have the right to use it in anyway we think fit!! This was just to bring forth the other side of the coin!!!!
No offense meant please !!!