Thursday, October 30, 2008

BAN SHORT SELLING

Sensex is falling because of reluctance of FM to ban shorting in futures market. FM is supporting large Indian traders who are heavily putting naked shorts in the futures market. large naked shorts in the futures segment have driven all buyers . To misguide investors SEBI chief Bhave talks about banning FII Short selling . FII short selling is only 2 % of the short selling which is going on in the Futures market. FII selling is 800 Crores but Future shorting is 70,000 Crores every day. The fact is FM does not have vision, knowledge and intelligence to handle the situation. Problem is India Futures market which is a betting/satta market with no connection to delivery of stocks. Look what did short sellers do to the Unitech and Core Projects Stock. Anyway the FM has decided that Mutual funds should collapse so all Investors only have to wait till they are voted out. MF investors in the coming elections should remember that NAV crashing was due to inaction on part of the FM to stabilize the market , no one asked him for a free lunch, only what was asked to stop the manipulation in the Indian futures market by Indian traders and brokers. Look at the market today no one is willing to buy because of the heavy short sales., The only stock which is doing good is Unitech Since they have complained to SEBI against the cartel short selling their stock in Futures markets. Maybe a time will come where in every company listed in the satta / Futures market will have to complain to SEBI to

1 comment:

Kruns said...

Totally Agreed.
This is really nice article.

Short selling should be banned completely for 7 days.

After that, Short selling should be allowed for 3 months on trial basis with strict analyzed rules and conditions making strict for short term traders.

This will boost Indian market and general public confidence into market back.

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