To assist investors, Sebi wants to release frequent updates on “market risk factor disclosures.”
In a first for the world, the Securities and Exchange Board of India (Sebi) intends to regularly publish “risk factor disclosures” on market movements, including ups and downs, to assist investors in making wise choices by benefiting from the regulator’s knowledge, according to sources.
In NEW DELHI: In a first for the world, the Securities and Exchange Board of India (Sebi) intends to regularly publish “risk factor disclosures” on market movements, including ups and downs, to assist investors in making wise choices by benefiting from the regulator’s knowledge, according to sources.
The action, which is still in the early stages of debate, can aid investors in avoiding a herd mentality that has been especially evident over the past couple of years, beginning with significant selloffs when the pandemic rocked the world in early 2020.
Soon after, there was a dramatic increase in stock purchases without a proper grasp of the fundamentals, largely as a result of get-rich-quick schemes, which was followed by losses.
Losses incurred by investors in recent large-scale initial public offerings (IPOs) and the extremely complex futures and options market have been particularly significant.
“Although investors have observed a consistent pattern: everyone rushes to acquire shares when things are going well and then engages in panic selling when a crisis arises. The lack of truly independent views is a major factor in why the fundamentals of capital market investments are consistently ignored “said a senior official.
The official went on to say that while most market participants who produce research materials do so with their own corporate interests in mind, it could be a good idea for the regulator to make its own observations about market upswings and downturns public.
High-level source: “It’s time for Sebi to lead by example by making disclosures on items that can have repercussions for investors at large and disclosures of critical market-wide datapoints,” when explaining the concept Sebi is working on. Enforcement Directorate is looking into important Indian cryptocurrency exchanges. Your money is it safe?
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In many nations, insurance premiums for owner-drivers of red-colored cars—particularly those with high speeds—tend to be more expensive since they signal a risk-taking mindset.
The history of speeding fines and other traffic law offences also contributes to the creation of the profile used to calculate insurance rates. The idea is that a responsible owner-driver should actually pay less for insurance than reckless or habitual offenders.
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