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Friday, October 10, 2008

Market crash :Ban short selling in stock markets as a relief measure

In the last several weeks investor across the globe would have lost sleep and peace by stock market crash.Markets proved to be a high risk zone.
Damage done is too much and it will take a long time to get energy for the up move.
Short sellers made money a lot but their numbers are small.The regulators could have contained the downfall if they banned short selling of many scripts for a short period of time and then re-introduce.
This measure is hardly required only to bring confidence among investors. Regulators fear that it will harm trading activities and reduced volumes are unnecessary because its first target is to save investors from losing their capital.This is not the time to allow trading as all governments are announcing relief packages for economy re-structuring.
So Investors want Ban Short on selling in the cash market and let derivatives be traded as usual for atleast 3 months and see the effects in the stock markets.

Nse And Sensex