NSE Scam: Big disclosure, just before SEBI's order, foreign investors played this trick, the exchange got a setback

NSE Scam: Big disclosure, just before SEBI’s order, foreign investors played this trick, the exchange got a setback


new Delhi. There has been a big disclosure about the fraud in the co-location case on the National Stock Exchange (NSE). According to the NSE website, in February, just before the action of market regulator SEBI against former NSE MD and CEO Chitra Ramakrishna, there was a big stir on the exchange.

Experts say that just before the SEBI order, foreign investors sold their shares in large numbers to domestic investors. Of the 209 transactions that took place during this period, about 35 per cent were by foreign investors, in which shares were sold to domestic investors. During this period, a total of 11.61 lakh shares were sold to foreign investors. Their price ranged from Rs 1,650 to Rs 2,800.

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Share prices were highest in January
The price of NSE shares was highest at Rs 3,650 in January, but since being unlisted, there is not much activity in its stock. This suggests that the selloff by foreign investors in January is a sign of some trouble, as almost 50 per cent of similar transactions in December took place at prices above Rs 2,000 per share. Some of these were even at Rs 2,800 per share.

Such a sight was not seen in 2021
Experts say that earlier such a big sell-off of NSE shares was seen in September, but it was done among domestic investors. Barring this, 2021 did not see more than 100 transactions in any month. In such a situation, many questions arise from this big sell-off in January.

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Many big investors out completely
NSE is also in the race to list itself in the market, which has to postpone its plan for the time being. Meanwhile, major foreign investors like Citigroup, Goldman Sachs and Norwest Venture Partners have completely exited the NSE even before the end of the financial year 2021-22. Some big investors like Saif Capital have also reduced their stake.

Delay in IPO is the biggest reason
The biggest reason for the decrease in the stake of foreign investors in NSE shares is the delay in the IPO of the exchange. But, most market analysts say that the huge sell-off in January is indicating otherwise for this reason as well. Some veterans also say that the sale could be linked to the co-location controversy which has plagued the NSE continuously since 2015.

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The share of institutional investors is decreasing continuously
Institutional investors are continuously reducing their stake on NSE, while the share of retail investors is increasing. In the financial year 2011-12, where the share of institutional investors on NSE was 87 percent, now it has come down to 50 percent. Shares of NSE have also doubled from Rs 1,000 in June 2020. Analysts are estimating it to go up to 3,000.

Tags: NSE, Scam


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