The Hindu Business Line : Don't be led by rumours, SEBI chief tells small investors

ALL you investors who are looking at the recent upswing in stock prices as an opportunity for quick gains, here is a home truth from the capital market regulator.

The Chairman of the Securities and Exchange Board of India (SEBI), Mr G.N. Bajpai, has advised investors, especially small ones, to desist from taking investment decisions on the basis of market rumours.

"Don't be led by rumours or allow your decisions to be influenced by rumours. Find mechanisms to know the truth behind the rumours. Take informed decisions after a thorough analysis," Mr Bajpai said at the launch of State-wide Investor Awareness Programme jointly organised by the Delhi Stock Exchange and the Committee on Financial Markets & Investor Protection of the Institute of Chartered Accountants of India (ICAI) here on Saturday.

Highlighting that investors should factor in the risk-return trade offs in stock investments, Mr Bajpai even suggested that they should seek the help of professional people in making their investment decisions. "We will see to it that the professionals are accountable to the advices made by them," Mr Bajpai said.

In his address, the Lt. Governor of National Capital Territory of Delhi, Mr Vijay Kapoor, urged the SEBI to provide an enabling environment for growth of the economy.

Mr Bajpai later told Business Line that the SEBI board was yet to take a decision on reduction in minimum contract size of derivative instruments from the current level of Rs 2 lakh.

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