Why the shares fell and how did they rise?
The Government clarified in a Press Note,
In consultation with the Reserve Bank of India and the Securities and Exchange Board of India, Government proposed to take certain measures to moderate capital inflows. These measures are in the overall interest of the economy and of the market and investors.
The proposed measures include some kind of restrictions on issue of offshore derivative instruments by FIIs and their sub-accounts in relation to their exposure in market. Neither do these suggest nor is there any intention to ban issue of such instruments by FIIs.
These proposed measures have been put on SEBI website for public comments based on which a view would be taken by the authorities.
Did the share market fall so badly just because the Government wanted to ask certain questions? And does it rise just because the FM says things are fine. Normally a Government takes pride in a rising Stock Market, but the FM said, “The rather steep rise in the Sensex sometimes surprises me, sometimes worries me, I don't think the fundamentals change so rapidly from day to day."
SEBI Chairman says, "Those that are eligible, please come in through the front door ... instead of coming through the PN route"
Is India's huge black money that is being invested in the stocks?