Markets need local cues to maintain peace

Market need local cues to maintain peace by Lachman Ramachand on DNA editorial of Jan 16th 2012...

For the government

"SEBI recently authorised two additional methods of accessing the capital market — Institutional Placement Programme (IPP) and Offer for Sale of Shares through the stock exchanges — offer companies flexible, cost-effective and less time-consuming options for accessing the capital market, specifically to meet the minimum public shareholding norms."

The Hindu : Opinion / Editorial : For the government

"Significant changes in regulation to the capital market should be for the common benefit of the regulated. They should not be framed so as to favour few. This salutary principle has evidently not been kept in mind in this case. Whatever the justification, it is clear that SEBI's new guidelines do not serve the interests of even the disinvestment process."

Crime and punishment

The Hindu : Opinion / Editorial : Crime and punishment:

"The question arises whether the quantum of punishment awarded [by SEBI] meets the ends of justice and whether it is deterrent enough to prevent perpetuation of capital market fraud. ... Investigations into cases of capital market fraud fizzle out, once they get away from the glare of publicity. Besides, it is unlikely that retail investors who bought shares in these companies will ever be compensated for the loss."