A view of Dalal Street (Hemant Mishra/Mint via Getty Images)The Prime Minister’s Office (PMO) has asked Securities and Exchange Board of India (SEBI) to investigate the stock market crash that took place in September and October (2018), The Hindu BusinessLine has reported. SEBI is India’s apex regulator for the securities market in India.
The report claimed that PMO suspects a cartel of bear market makers deliberately perpetrated the market crash. The matter began on 21 September when rumours spread about Dewan Housing Finance Limited (DHFL) defaulting on its debt.
It prompted an aggressive sell-off of the company’s shares leading to a 42 per cent slump in its share price in a single trading day.
This also dragged down the shares of other home finance companies, with many of the losing more than 10 per cent of their equity price. It should be noted that the DHFL’s debt was AAA rated, which means it carries a near-zero risk of default and the company was in a comfortable position to service its debt.
The PMO has sought details from SEBI regarding the hostile sale of DHFL’s bond papers that caused the market crash. It also seeks to understand the trading details of Foreign Portfolio investors (FPI) in stocks of DHFL and other companies in similar businesses.
- Sensex ,
- Economics ,
- PMO ,
- SEBI ,
- BSE ,
- Stock Market ,
- Dalal Street ,
- DHFL ,
- Bear Cartel ,
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.