Let us break some myths:
1. SEBI is here to protect the small investor: Well tried! Nobody is here to protect the small investor, but to keep the small investor a facade has to be created. So along with MCA, ROC, IRDA, CLB, ..one more body was needed to complete the alphabetic soup so the alphabets S, E, B and I have been included.
2. All information is available on the SEBI site: I dare you to find the list of brokers who have been prosecuted – surely even they cannot find it. It is an old trick. If some body asks you for information give it in such a muddled form – a 500 page report with references, clauses, sub-clauses.
3. They take suo moto action on insider trading: It is the stock exchanges who have the data scanning ability to find a pattern in things like insider trading. The regulator sadly lacks the technical ability to spot and find a pattern in the trades and prices.
4. They do very investor friendly things: If insisting that the shareholders should get the full copy of the balance sheet is a good step, then you may be right, but I am not sure. One prominent industrialist said ‘let people ask for a full report’ rather than send it as a default option. SEBI said NO. So all of us get big, bulky balance sheets and 99% (I am sure that I will not need to change it from here) of us who receive it will chuck it out without reading it…sad but true.
5. Removing the entry load is a fantastic thing for the small unit holder: Well the small investor (what ever it means) is likely not to get any service from the vanishing distributor. It is likely that he/she will go to the net and make and investment or go to a broker and pay brokerage instead of an entry load 🙂
aaj ke liya itna panga bas…:(
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