A war of words has erupted in the stock market after RPG Enterprises chairman Harsh Goenka accused brokers in Kolkata of inflating stock prices and engaging in malpractices similar to the infamous Harshad Mehta and Ketan Parekh era. The Association of National Exchanges Members of India (ANMI) has condemned Goenka's statement, calling it baseless and lacking evidence, and demanding an apology. ANMI and Zee Business managing editor Anil Singhvi have also pointed out the robust surveillance measures in place by the Securities Exchange Board of India and exchanges to monitor any irregularities in the stock market.
RPG Chairman's Accusations Ignite Stock Market Controversy
Harsh Goenka, the chairman of RPG Enterprises, has ignited a firestorm of controversy in the Indian stock market with his accusations that brokers in Kolkata are engaged in malpractice and manipulating stock prices, reminiscent of the infamous Harshad Mehta and Ketan Parekh era.
Background
Harshad Mehta and Ketan Parekh were stockbrokers who masterminded massive stock market scams in India during the 1990s. Mehta, known as the "Big Bull," used dubious methods to inflate stock prices, leading to a historic market crash in 1992. Similarly, Parekh manipulated markets in 2001, resulting in losses of billions of rupees.
Current Controversy
Goenka's accusations stem from a recent surge in share prices of several Kolkata-based companies. He alleged that brokers were engaging in "pump and dump" schemes, artificially inflating prices and then selling off their holdings at inflated rates.
Response from ANMI and Zee Business
The Association of National Exchanges Members of India (ANMI) strongly condemned Goenka's statement, calling it "baseless and unfounded." ANMI highlighted the robust surveillance measures in place by the Securities and Exchange Board of India (SEBI) and exchanges to prevent irregularities.
Similarly, Zee Business managing editor Anil Singhvi dismissed Goenka's claims, asserting that the stock market is regulated with strict oversight and any attempts at manipulation would be quickly detected.
Top 5 FAQs
1. What are the specific allegations made by Harsh Goenka?
Goenka accused brokers in Kolkata of inflating stock prices and engaging in malpractices similar to the Harshad Mehta and Ketan Parekh scams.
2. How have the accused brokers responded?
Brokers have denied the allegations and stated that the recent price surge is due to strong fundamentals and not manipulation.
3. What is the role of SEBI in this matter?
SEBI is closely monitoring the situation and has stated that it will investigate any irregularities.
4. Are there any regulatory measures in place to prevent stock market manipulation?
Yes, SEBI has implemented robust surveillance systems that monitor market activity and detect any suspicious trading patterns.
5. What are the potential consequences for those found guilty of manipulation?
Individuals or companies found guilty of manipulating stock prices could face penalties, fines, or even imprisonment.
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