Stock Markets Exposed
Reds must show red rags to bulls in Indian stock market, in finance ministry and intelligence agencies.?
If 40/50 %of the Indian companies’ capital is held by PNs, is a condition for declaring economic emergency in the country. If the PN money is faceless or face can not be disclosed then some thing is wrong with the management of economy. No faithful government can have such unleashed economy. The government is acting way out of its articles of faith. It has to be mafia money or money laundering process by the privileged class. National security adviser had warned about questionable money in Indian corporate and its blackmailing or green mailing power. Govt as usual denied but events show govt in bad light. The explanation offered by FM lack credibility or shows collusion for election money. American govt would never allow such a security threatening situation. Developed economy requires good economic intelligence. State transport bus drivers can not pilot A-380 aircraft. The recent incidents in stock market show higher up in government in hand in glove with black money managers
Public Comments
- you are absolutely on track but if demands of market forces work together even government intervention cannot save it , why was the FM asleep earlier, is he not aware, he is but when you get loads of money in transaction tax and STT who is complaining as long as dollar comes in the real problem lies in the exporters lobby who are afraid that the rupee is fats approaching the 35 mark where they will stand to lose the most
- After the market turmoil that it caused, it is appropriate that the term P-Notes, which is an abbrevation for Participatory Notes, be renamed as Panic Notes. Participatory Notes have caused so much Panic even though no drastic action was taken by SEBI against P-Notes. After all, P-Notes have not been banned by SEBI. P-Notes, which are offshore derivative instruments issued by FII’s or FII sub accounts which are registered with SEBI, have certain inherent benefits attached with them. The primary benefit of using P-Note is that, the entity or organisation using P-Note need not get registered with SEBI. The only necessity for using a PNote is that the entity should be registered with the registrar of companies or an equivalent body / organisation in the country of its orgin. The second advantage of using Participatory Notes lies in the tax front. Presently, the tax authorities can open the files of FII’s even after a period of 5 years after the date on which the actual transaction took place and penalise them. However, in the case of P-Notes, this is not possible. Also, registering as an FII is a tedious and time consuming process. Getting approval is very tough. Hence many foreign institutions take the PNote route to invest in India. The only argument going in favour of the Government and SEBI in particular, in regulating P-Notes is that it can potentially prove to be a serious threat to the country, both politically and economically. For ex: terrorists are said to be using Participatory Notes to pump in money into India to profit from the strong bull run that Indian stock markets are witnessing. The money thus made is likely to be used for financing terrorist activities. Since the origin of the investments is unknown, if P-Notes are used, it is difficult to trace who is investing and how much is being invested. Another reason for SEBI and the finance ministry to come down heavily on Participatory Notes is because SEBI suspects that certain institutions use the Participatory Notes way to artificially rig the share prices. The Indian stock market is likely to be extremely volatile until the dust settles on the Participatory Notes a.k.a Panic Notes issue.
