Research Analysts to be covered by an Operating Framework Guidelines by SEBI ~ Bloody High Time they Were !
Today we posted this comprehensive and scathing View on our Scrip Standpoint Module on our website…do visit it
In my View,while some Research Analysts are Good most are either Incompetent or Operate with Personal or Employer Vested Interests largely in c0llusion with Companies and their Promoters and Operators and Brokers and FIIs and dangerously even with Media Anchors and Experts on Stock Channels and in Print Media and Stock Websites and Portals
…..and the Irony is that they have created this Storm and are crying now when it’s Raining !
The Result has been disastrous for the Markets with it’s Credibility and Sanctity destroyed time and again by these Insiders and has contributed in big measure for Retail Investors continuing to remain a dwindling Species having been suckered again and a again and seen huge Wealth Erosion in their Equity Investments
Without such a Framework Research Analysts and their Employers and Operators and Companies and other Vested Interests that may be involved will get away with Murder of Retail Investors who depend on them only to be mislead ! They need to become accountable
The Website Post linked above has provided a lot of Fodder where SEBI had good grounds to have acted earlier than it has in announcing that they may come up with an Operating Framework for Research Analysts to make them accountable…some of such fodder I’ve mentioned below with links on the website posted above
Arshiya International at Rs 125 levels and CEBBCO at Rs 75 levels end 2012 and beginning 2013 were Market Darlings and Buy Research Reports were spewed by plenty of Leading Brokers ….I had warned against Investing in Both….Both got decimated within days and Months after they were recommended and today they continue to languish at Rs 16 and Rs 10.76 respectively with huge wealth erosion for those who had believed in these Big Brokers and their Reports !
Has SEBI pulled up these BIG Brokers and their Research Analysts for these Recommendations !? or sought an explanation for their sudden erosion after the reco ! ?
In 2010 I had warned on this Blog against Karuturi Global and Temptation Foods at Rs 22 levels and was accused of representing Rivals !….They began eroding fast and today Karuturi is wasted at Rs 1.32 and in fact Temptation Foods was suspended on BSE on April 19,2012 for penal reasons when it’s last quoted then at Rs 4.05!
Of Course I’m not Perfect nor is my Company….but we shall never compromise on the Integrity of our Recommendations…we may give targets but will never guarantee even One Percent of Returns !…and there is always the Risk the Recommendation may not work !
Retail Investors need this SEBI Protection Measure Soon !