"With the Sensex rising at a faster pace there is need for Sebi to keep a watch on trading pattern to prevent any speculative activities," a finance ministry official said here.
Finance Ministry has asked market regulator—Securities Exchange Board of India (Sebi)—to monitor pattern of trading to curb speculative activities.
“With the Sensex rising at a faster pace there is need for Sebi to keep a watch on trading pattern to prevent any speculative activities,” a finance m inistry official said here.
Once capital market gets into grip of volatility, it is speculators who try to manipulate the market to make quick buck at the cost of small time investors, analysts say.
Need for vigilance
“Though volatility is always anticipated in the stock market, one has to be really vigilant when the market gallops at a faster rate. Currently, there is extreme optimism and bullishness in the market. At the same time there is underlying fear,” sources said.
“This fear can be exploited by speculators to make quick buck. In the process small time investors, who invest their life long savings, may suffer,” sources said adding “the objective of Sebi will be to ward off speculators.”
Since it is a difficult task to correctly comprehend the market ‘sentiment’, small time investors should be extra careful whenever a fast moving market enters into a phase of volatility, sources say.
Higher volatility means greater risk and this keeps investors out, leaving the field open to speculators, analysts say.
Analysts said quarterly results to be announced by companies from next week onwards and RBI’s quarterly review, hold the key for market’s future direction.
