The Bounce In The Stock Markets Did Not Happen Spontaneously

The bounce in the stock markets did not happen spontaneously, After the epidemic, midcap and smallcap stocks also showed improvement: SEBI chairman.

Ajay Tyagi, chairman of the capital markets regulator SEBI, has said that the improvement seen in the capital markets after the shock of the Corona epidemic is not unintended. According to him, the basis of this reform is broad.

During this period, not only has large stocks improved, midcap and smallcap stocks have also improved. The statement of the Sebi chief has come amid criticisms that there was no coherence between the movement of stock markets and the state of the economy.

The capital markets had suffered a huge decline earlier this year amid the Corona crisis. But now the markets have recovered from it and have reached a high level of January this year. Tyagi said that 90 percent of shares in NSE have given positive returns to investors so far this year.

63 lakh new demat accounts were opened in the first half of the current financial year. The figure was 27.4 lakh in the same period last year. In this way the number of demat accounts has increased by 130 percent.

At the same time, foreign portfolio investors (FPIs) have invested $ 11 billion in the Indian market in this period. FPI investment in other emerging markets has been negative. There was definitely a withdrawal from Indian markets in March.

The total investment in the first half of the current financial year has been Rs 1.47 lakh crore. Tyagi said the steps Sebi took during Corona helped the capital markets. The regulator will remain vigilant further and will take steps in the event of unexpected fluctuations in the market.

The bounce in the Stock Markets. Independent director are Puzzle

The SEBI chief said that cases of resignation by independent directors had increased in the last two years.

They have been asked to inform the regulator if they have resigned amid concerns related to the operations of the company. In Tyagi’s opinion, independent directors of companies are a puzzle.

The role of independent directors in a company is very important, as they are the voice of small shareholders on the board. If any of them have resigned regarding the functioning of the company, then they should clearly state everything publicly.

During the last few years, many scams have been reported in Indian companies. As such, SEBI is trying to strengthen the norms of conduct of operations.