Are Stock Markets in India Poorly Regulated


Active Member
Most things in India are poorly regulated, my dear friend. They "follow the general trend" of lack of good governence. Even in the capital city, there are water and power problems. To have a genuine discussion, it is better to be specific. A lot of things have improved after DMAT.

You have raised a very valid point actually.What about the property market? In the stock market, at least Sebi is there even if as a toothless tiger. The property guys go on delaying the sanction of property and keep leyving charges without anybody being able to do much. Some trends call for a reversal.

Considering the quantum and durartion of investment, that is the real investment. Some years ago the magazine, Outlook money, the intelligent investor had a very interesting article on how property sharks were duping people and there is no regulatory authority. I remember reading that some of them even threatened the the people who wrote the article and were trying to probe.
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yes it is evidently poorly regulated by revelations of the misgivings of RIL shares. but what bothers me most is that even after the public knowledge of the irregularities, no action has yet been taken.
no its not regulation definately poorly educated where 90% of mass enters just to 4 quick money at top to sell at further top with no education except mouthfull gain stories from near but not dear 1's.
what exchange requires timely education and warning. Though they have saprated risky stocks in TT and Z category still mass runs toward these categories stock as greed prevails over wisdom.
One can enter these categories if u know "Bumpa Nad dump' Strategy properly.
So buy share like potato and sell like ur 10 yr old sccoter.
I believe that they r not poorely regulated but poorely managed. Indian securities market have a very sofisticated system. SEBi has established a very robut system for its control. But the problem is that it there is no implementation of rules. I don't know if any big fish has been penalised dearly for manupulating markets but i surely know that there r stringent provisions for doing so. Thus the case is that whenever there is a case which demands quich action and taking strong steps SEBI- the regulator finds itself having cold feet.

The problem, i believe, lies in investigation and adjudication proceedings of SEBI. Due to poor investigation they r not able to prepare a strong case against such particiapnts and thus they can continue to do what they do best.
there had been reports in ET that the thursdays falls were supported by the govt. to stem the misuse of long term capital gains tax, which could have been used to legitamise black money.

does that mean there had been no correction or bearish sentiment in the market and todays rise justifies that?????

No doubt a very nice discussion.

Unfortunately, many of us (investors) buy into 'penny' companies without knowing a **** about the company.

Many of the 'penny' companies have downed their shutters for many years. Some report turnover of just 1 0r 2% of their market cap.

Greed is probably one of the underlying factors that makes us buy into shares of such dud 'penny' stocks. We are rather very careless and casual in our approach in buying such stocks. We, generally do not part with even 100/- rupees to any vendor or even an autorickshaw guy without ascertaining as to whether the amount paid is truly worth or not. But, when it comes to investing in the share Market, we invest 1000s of rupees without baiting an eyelid or even asking a single question.

This is where the Regulator comes in. We generally hear the explanation that there are about 5000 listed companies and it is very difficult, if not impossible to keep a track of all these companies.
But, this is what they are supposed to be doing. The Regulator does not have to be bothered about the top 2500 companies with the likes of Reliance, Tata, Infosys, etc, but has to concentrate on the lower half.
Companies that do not file their returns regularly, companies that do not report any turnover, companies that report continuous losses are the companies that SEBI has to monitor closely.
One more way, SEBI can unearth information, is to ask IT Authorities for copies of the IT returns of these culprit Companies.
Vigilance, sadly has failed millions of investors.

God save the country.

I would like Traderji and seniors to repond on this thread and I would also like to request Traderji to send a copy of all these posts to SEBI,, Ministry of Company Affairs.


what is being said in this forum is true, while one is ready to loose in lakhs but will not pay even 100's to prfessional anlysist or portfolio manager, though their r only few who realy can b called analyst.
Their r many socalled broker *** analysist rather tip and rumor monger give seriously tips only to prepare exit route for big clients.
I have seen such man who proudly talk about his day trading gain. but not detailed loss on holding as they were 2 day trading but hoded as gone otherwise.
I donot know how we can deliver goods to innocent greedy small people who loses not only money but social peace and family living standard.
U may add to this.
I request to trade to take it as cause of this forum and deter if any one propagating falls news and stories and reasons to subscribe falvor of bull phase.
No one reccomond blue chip while they r down. all new agenciencies and media highlights them when they have a nice run only to help mutual fund and big investors.
All the best to all of us.

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