Monday, August 12, 2013

More Powers to SEBI Planned

Parliament is planning to pass a proposal to give more powers to SEBI. The main aim I guess here is to scrutinise, restrict and disallow certain Foreign Direct Investment.
This step is an exact opposite of stock market functioning. Can the government prevent a thief from buying a share? If it cannot then it cannot also ask thief not to put money in bulk.
When I have a mango to sell, I am interested in two things. First of all I should get a good price. Second is I cannot wait long otherwise the mango will rot. Shares work on such principles. There is a desire to get good price. And there is a force which is against it.
A healthy share system is not governed by laws. It is governed by market forces.
Remember, the old Murphy's law. A thing which can go wrong will go wrong eventually. But by putting a wrong law we cannot have a right system. Unfortunately this is how our system works. It is time to change this. Time to change for the better. Time for BJP.

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