Industrialist Harsh Goenka has warned investors of 'severe losses' due to a nexus between promoters and Gujarati-Marwari brokers. While some individuals on the internet have expressed similar concerns, others have criticised Goenka for unnecessarily creating panic and targeting communities.
Goenka took to his social media account on Saturday to raise concerns about practices reminiscent of the Harshad Mehta/Ketan Parekh era. He stated that alleged malpractices are resurfacing amidst a surging stock market, particularly in Kolkata.
He held Gujarati-Marwari brokers responsible for this and accused them of driving stock prices to unrealistic levels. He also urged the Finance Ministry and SEBI to step in and investigate. It should be noted that he mistakenly tagged the wrong account for SEBI, as the market regulator is not on that platform.
With a booming stock market, all the malpractices of Harshad Mehta/Ketan Parekh era are back primarily in Kolkata. Promoters are inflating profits (through profit entry) and in nexus with Gujarati-Marwari brokers driving their stock prices to unrealistic levels. It's time for…
May 4, 2024Goenka's post received varying responses from netizens, with many objecting to his accusations against specific communities for malpractices. Investor Vijay Kedia seemingly took a potshot at Goenka, asking if his tweet was referring to his brother Sanjiv Goenka's company RPSG. In response, Goenka clarified, "I mentioned Gujarati-Marwari brokers, not promoters."
I said Gujarati- Marwari brokers not promoters
May 5, 2024Investor N Jayakumar called it a "pretty serious allegation", noting that "community profiling could have been avoided."
Seems like a pretty serious allegation, @hvgoenka - though community profiling could have been avoided! In a market of 9000 plus listed stocks, if a few smaller firms indulged themselves, scarcely a need for alarm bells
May 4, 2024There were also posts supporting Goenka, with some thanking him for highlighting the issue. Even the film industry joined the debate, with actor Soni Razdan stressing the importance of being realistic and responsible, and Ranvir Shorey tagging Finance Minister Nirmala Sitharaman to bring the post to her attention.
Yes please. We have to be able to be more realistic and responsible. It's not a fair game but who needs another debacle and honestly why. There is plenty money to be made always by those that know how to play !
May 4, 2024Goenka's tweet underscores growing apprehension within the financial community regarding speculative activities and irregularities in the stock market, prompting calls for regulatory oversight to protect investors' interests.
His concerns have drawn attention to the need for proactive measures by regulatory authorities to maintain market integrity and ensure fair practices.
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