India remains an IPO Pump and Dump Heaven for Fly by Night Operators

India’s Stock Market remains a heaven for Pump and Dump Operators of IPOs.Despite some high quality IPOs in recent times like Coal India,the majority of the IPOs being done are by fly by night operators and promoters.Their is little justification for the valuation and the subscription numbers.But it is a lucrative trade for shady operators who easily manage to manipulate small cap IPOs leaving huge losses for retail investors.The stock market regulator SEBI strangely remains asleep at the wheel despite some blatant pump and dump issues.More than 50% of the IPOs in the Indian stock market over the past year are  below their issue prices.But there has been no investigation and prosecution over these white collar crimes just seem gentle scolding.Like the totally infamous and ineffectual SEC of the US Stock Market,SEBI looks more and more like a toothless tiger.Despite some laudable reforms in favor of retail investors,it needs to act more quickly and reform much more.

The latest pump and dump is the BS Transformers falling more than 50% in a matter of days.It joins the company of other companies like Aster Silicates,Tarapur Transformers who remain more than 50% below their issue price.With Indian stock market witnessing a strong bull run ,micro caps listed on the markets have become the latest target for stock market operators.With corrupt promoters happily playing ball, a number of these scrips are being run up to snare retail investors.There is only but one result of these pump and dump games.Note Institutional Investors are also happy to join in these parties subscribing to some of the shadier IPOs and bailing out in time no doubt with the connivance of the promoter.