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EDITORIAL There is nothing right with the functioning premier stock exchanges in the country, more so Bombay Stock Exchange whose behaviour has countrywide fallout. It continues to be treated as personal property for using all types of manipulative skills to rob the small investor in particular of his precious savings. Volatility in market is acceptable provided there are some substantial factors like warlike situation in any part of the world, bad budget and/or worldwide crash in certain economy shares. The manner in which bears hammered the stock market on March 2 ..more One really does not know what International Women's Day mean to the feminity of this country. But a wonderful idea given concrete shape by the bachelor Prime Minister has done wonders. He invited all the gliteratti among women of Delhi, the national capital. From fashion designers like Ritu Beri to women pilots it was a wonderful treat for the feminity with menu ......more |
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Secularism
and By Ajit Jamwal By Dr K C Bhagat & Dr R D Gupta Chandrasekhar
Azad : By K K Khullar The
Inside Truth-I From B L Kak |
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EDITORIAL There is nothing right with the functioning premier stock exchanges in the country, more so Bombay Stock Exchange whose behaviour has countrywide fallout. It continues to be treated as personal property for using all types of manipulative skills to rob the small investor in particular of his precious savings. Volatility in market is acceptable provided there are some substantial factors like warlike situation in any part of the world, bad budget and/or worldwide crash in certain economy shares. The manner in which bears hammered the stock market on March 2 during the last hour of the trading session causing crash of 176 points has eroded the confidence of investors in share market. This fall was followed by another large one on the next trading day. The fall is not only unprecedented but foul smell has begun to emanate from those at the helm in the premier Bombay Stock Exchange. At this stage one can delve into this aspect from various angles. The budget sent cheers to the investors and the nation's stock markets. BSE rose by 177 points on Feb 28. It was mentioned as an all time favourable budget for revival of capital market. Many concessions were given to industry and incentives offered. One would have expected upward momentum to sustain itself. But there was that black Friday that sent the market crashing by 176 points. As if this was not enough, on the following Friday i.e. March 9, there was another crash of 235 points largely attributed to payment crisis in Calcutta Stock Exchange. There was some recovery at fag end of the session with net loss of 175 points. This is simply ridiculous and unacceptable. Such bear hammering on two successive Fridays makes mockery of the stock exchanges and their regulatory authority i.e. SEBI which probably has no immediate answer for such tailor-made fall. In retrospect it will be apt to mention manipulation of stock markets in 1992 by the big bull Harshad Mehta in the company of broker Parekh. Thousands of crores were lost by the small investors as also institutional investors. The big bull incidentally is back in the game; so is Parekh. The so-called enquiry remains elusive even 9 year hence It is strange that end-users of this largest ever financial scam remain elusive even today which clearly indicates hands of the bigwigs who must have got their share. It was stated by Harshad Mehta that he paid Rs one crore as gift to the then Prime Minister Narasimha Rao bundled in one suit case. He had subsequently demonstrated in public how one crore worth notes could be stuffed in that particular attache case. He also relayed some tapes and the chronological record of how he reached the PM's pre-arranged place. But that episode remains confined to the burial of the scam itself. Ever since capital market remains in perpetual distress because both small investors and FIIs confidence stands shattered. They are all net sellers at throw away price with hardly any buyer. It is totally Bear's market and Bulls remain in shock-State. It is equally apt to recall that in 1998 also there was scandlous situation in BSE when its President JC Parekh was sacked by SEBI for his involvement in price manipulation. The shares thus manipulated related to Videocon, BPL and Sterilite. The last company is the same to whom BALCO shares have been sold by the Government allegedly at throwaway price. That enquiry is still incomplete by the regulatory authority namely Security and Exchange Board of India (SEBI). Mar 9 crash stands attributed to payment crisis in Calcutta Stock Exchange where too present President is Kamal Parekh. March 2 crash also brings in Ketan Parekh, be it as a bull or bear. One really does not know whether only surname is same or there is closer kinship. One also cannot ignore rigging of Global, Trust Bank share before its final merger with the UTI Bank. All the above episode are shocking because they have made it impossible for the small or institutional investors to repose their confidence in nation's bourses. Capital market instead of getting revived suffers jolt after jolt which looks like totally manipulated affair defying all logic. Yashwant Sinha for a change gropes in the dark. He says there are no payment crisis in bourses. In fact, there are indeed such crisis as manifested by volatality in Calcutta Stock Exchange which affected BSE also materially. The million dollar question is where the small investor goes and where does he invest his hard-earned money? You have reduced interests rates in post office schemes by a hefty 1.5%. One of the reasons for slashing interest rates was to distract investors from small savings to capital market either through Mutual Funds or direct buying. The reports indicate that fresh deposits during the current month in post offices are very less. Obviously, investors are looking for greener pastures. It is a cul-de-suc at the stock markets as well with crash after crash. Institutional investors who also make their buy of shares have too suffered due to this unprecedented crash on two successive Fridays. One begins to feel that there are forces out to destabilise Indian market in which BSE has played pivotal role. True, its President Anand Rathi has resigned for allegedly leaking out vital information to select brokers that caused convulsions and high volatility in BSE. Enquiry is ordered. But neither the 1992 nor 1998 enquiry is complete. One begins to wonder how strong is the hand that makes these enquiries virtually infructuous. There is indeed much more to it than meets the eye. Thorough overall of country's bourse is long overdue. Perhaps, they can be reshaped to conform to National Stock Exchange pattern. Finance Minister must tell the investors where they should put their hard earned money. Revival of economy is directly related to revival of capital market. Capital market will never revive unless the shattered confidence of small investors and the FIIs is restored through series of legislative and other measures. One really does not know what International Women's Day mean to the feminity of this country. But a wonderful idea given concrete shape by the bachelor Prime Minister has done wonders. He invited all the gliteratti among women of Delhi, the national capital. From fashion designers like Ritu Beri to women pilots it was a wonderful treat for the feminity with menu prepared by the Maurya's and served by the girl-trainees in Hotel Management. It must have been calculated excercise as those who made it to the teaparty indicate good preparation for identifying women-achievers and that too who were present in Delhi. The First Lady Usha Narayan, Second Lady Suman Krishan Kant, Mohini Giri, the former Chairman of National Commission for Women, the politicians who are in the reckoning like Sonia Gandhi, Sushma Swaraj and Sheilla Dixit all were the honoured guests of the Prime Minister. And there were those small time achievers like Flying Officer Karishma Bhalla and Lieutenant Meetu Mathur who have entered the hitherto exclusive male bastions. Prime Minister says 'yes' to Women Reservation Bill but perhaps reminds the 'achievers' that they have done it even otherwise in virtually all fields. This message is inferred when he says, ''There will be no reservation within reservation. The bill have to be passed in its present form''. He knows it will not happen that way. But this gathering of women, the achievers', will not forget the memorable tea-party, the first ever face-to-face encounter with such large number of women-achievers by any Prime Minister since independnece. When specifically questioned how he felt amongst so many women, Vajpayee just smiled off the question with that grin of the seasoned politician. |
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