All are waiting to see the new set of guide line SEBI going to announce soon to control the inside trading.
Though we discussed many times these subjects here, when a member of mudraa expressed his concern in the below thread
forced me to write this thread.
i wish to highlight the following thoughts.
There is no point at all in discussing these things again and again as long as the watch dog SEBI realise the following fact and take some corrective measures.Else whatever measures they going to impliment is not going to have any impact i feel.
1-Though we got indepedence in 1947 , we didnt get any idepedence till now regarding the ruling related to financial fraud, manipulation and domination related to stock market and our currencyby western powers.All are under the full control of western forces and they will keep on doing these things laughing at our authorities because of the folowing reason.
Our market open prior to indian opening (the first chance to manipulate the indian market by doing some cross trading , by those group ,who create large position in indian market,else fool the indian traders after manipulating the sgx market after trading hours, so the purpose of sgx nifty is nothing but an advantage given for overseas traders to rule indian market , same like how british ruled india before independance..We are slaves to them..realise this naked truth.
2-The next fraud game happen in the pre opening in nse where a seperate window is created prior to the official opening and all circular trade happens under the dark pool trading facility given to institutions before market opening..Also this time period is used to fix the opening of the nifty.so with least effort market can be controlled by a group of people.
If market open with out pre opening, then prior fixing is not so easy.So the smart people who created the pre opening session to help these players from outside who are Exchange traded fund and some FII who work hand in hand with some indian operators inside our market..
so when all these people join their hand, and when the political parties provide all prior information from the finance ministry , the job is so easy to do.
3-The last one is the speed game using the High frequency software which generate trade in 1/1000 seconds and cancell more than 70% of the orders which is called spoofing which though my law is not permitted in indian market, but as long There are many tools to hide such trade from the official checking, the authorities cant find anything.Those who do the fraud are well equipped with their tools and no one can touch them or detect them though the authorities claim so.
4-SEBI if take the full trading report of the brokerage houses who often giving fat finger errors and check their trading prior to the opening (pre opening ) and normal trading hours will reveal the modus operandi of the operation and either should suspend them if they keep on doing such manipulation and dont limit it with some mere penality.
In europe some countries already stopped this practice of trading using high frquency trading and recently European union fined 5 billions for rigging the currency market. see the report on the below link, but most of the main channels not bother to show this news to the public nor they interested to discuss about it.
but in india the game is going on in another form and they are sure that nothing is going to happen in india, as india fear of dollar outflow.Else they threaten india using their rating agencies.
All these game will stop when india decide to abolish the machine trading and announce only humans can trade in indian market..
this will have two effect..
the most important plus point will be , lot of people will come back to indian market and lot of people who lost job due to the arrival of robot will get their job back.Good volume will pick up again in the indian market as more people come to do pair trading sitting in brokerage houses and many brokerage houses now shutting their offices will re open them if SEBI give confidence to them.
By doing so,more public will be interested to trade in indian market as they know that market manipulation using robots wil not happen so with out fear they can trade in indian market.
Until and unless all are treated equally regarding the speed of the order entry in indian market , Sebi cant win the confidence of the public and investors whatever measures they take with out considering the above facts.
The world , public, investors all realising the real fact that behind every fraud and manipulation all across the world , the main role is played by the big institution.
This is a fact, a reality, and a naked truth..
So if watch dog realise this fact and take some preventive measures in the new insider trading rule.we can hope , we finally got independance fully!
If not,then We will be forced to board on the same old ship what we are sailing now!