The Systemic rot in India

We are supposed to have a well regulated transparent financial system here in India. But does the informed investor really trust the system or the regulators or the goverment?

Things arent so hunky dory anyways, with rampant governement interference to prop up the markets and distort price discovery, in an election year, mutual funds doing unsavory things and regulators going on vacations in goa, when markets were collapsing.

We all know that Fiis are shorting the rupee and the markets especially in the derivatives segment and the govt or regulators have been unable to do anything about it. If the Fiis cant do it in india they tend to do it in Singapore or HongKong. Read state-of-the-markets-sept1808

Worse the PN bar that has been removed is aiding them in the short selling.

The Proping of the markets by the last of the diis ie LIC of India reminds me of another fallen beamoth namely UTI which had fallen precisely due to such kind of interference

Read How LIC is used to prop up stock prices

also Uti 64 Bond maturity – The end of an era!

The governments and regulators have never been that trustworthy (especially after the gtb episode) but are the private institutions trustworthy too?

Read MFs tempt big investors with assured returns

Is this even ethical ? and where is the Sebi oversight ?

The mutual funds are feeling the withdrawal pressure especially from Fmp investors, and are even cutting deals to reduce risky exposure, to group entities in non transparent deals

HDFC MF sells Rs 650-cr realty paper, may be to group entity

Worse is the system slowly rotting thanks to agressive selling of market related funds as very safe wheein the managers are indemnified by all the fine print  ?

Read Better Safe than Sorry

As i see it Caveat Emptor still rules Indians.


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