INSUBCONTINENT EXCLUSIVE:
You need both bears and bulls to create wealth on Dalal Street and to clean up the system
Veteran investor Shankar Sharma says a bear market often helps clean up the system, as it exposes scams, which the bulls tend to keep hidden
“I really don’t know why regulators around here hate bear markets
Bear markets expose scams
Bull markets keep them hidden
Harshad, Satyam and now a massive list of scams or defaults are all out in the open thanks to a bear market
Bear markets should be seen as ethical hacking,” Sharma said in his latest tweet.
Indian equity market remained highly volatile all
During the year, the biggest banking fraud of India unravelled at country’s second-largest public sector lender Punjab National Bank
PNB disclosed “unauthorised and fraudulent transactions” on the morning of February 14, 2018
Up until the first quarter earnings, the size of the fraud stood at a little over Rs 14,000 crore (nearly $2 billion)
The prime suspects, Nirav Modi and Mehul Choksi, who were involved in obtaining fake LoUs from PNB’s Brady House branch have since fled
the country.
Following the PNB fraud, several other ‘mini banking scandals’ emerged at Andhra Bank, State Bank of India, Union Bank of
India, Bank of Baroda, UCO Bank and IDBI Bank
PNB stock has lost about 55 per cent of value in last one year.
