"No specific information provided": MoS Finance on alleged stock manipulation on Lok Sabha results day

New Delhi [India], July 22 : Minister of State for Finance Pankaj Chaudhary on Monday informed the Parliament that market regulator SEBI has received representations on the sharp stock market movements on June 4, the day when the Lok Sabha election results were declared, but no specific information on any "unfair trading" has been provided.
"Though SEBI has received representations on the above stock market movements, no specific information on any unfair trading has been provided," said Chaudhary, in a written reply in Lok Sabha in response to questions posed by five parliamentarians.
The minister was asked whether it is a fact that there was an unprecedented fall of stock prices amounting to a loss of Rs 30 lakh crores to investors immediately on June 4.
Indian stocks witnessed a bloodbath on the day the Lok Sabha results were announced, where incumbent BJP performed below par and seemed it may fall short of exit poll predictions and the majority mark on its own. Sensex declined by a whopping 4,389.73 points and Nifty by 1,379.40 points on June 4 when results of the 2024 Lok Sabha elections were announced.
Much of the losses were recovered over the next few sessions.
Many investors booked profits they accumulated from the stock market gains a day after the exit poll predictions indicated a comfortable majority for the BJP. On June 3, the markets had risen sharply, reacting to the positive exit poll predictions for the BJP-led NDA.
Minister Chaudhary in his written reply asserted that stock market movements are a function of investor perceptions along with other factors -- global economic scenarios affecting foreign capital flows, domestic macro-economic parameters, and overall corporate performance.
"The indices recovered within three days and have reached record levels since 4th June 2024, registering an increase of 12.9 per cent and 13.3 per cent respectively as on 18th July, 2024," the minister said.
The decrease of around Rs 30 lakh crore in market capitalisation of companies listed on NSE and BSE on June 4, 2024 was recovered within a period of five days and it has increased by around Rs 59 lakh crore since then as on July 18, 2024, the minister added.
"Securities and Exchange Board of India (SEBI), as the statutory regulator of securities markets, is mandated to put in place regulatory and surveillance frameworks for effecting stable operations and development of the securities markets. It conducts regular surveillance of trends in the securities markets to enhance market integrity and safeguard interest of investors," the minister said.
Trinamool Congress Rajya Sabha member Saket Gokhale had written a letter to financial market regulator SEBI, seeking a probe into the stock market activity ahead of the declaration of Lok Sabha election results. He had alleged "manipulation" in trading activities, a day after exit polls were announced.
Congress also raised similar allegations in June. During TV interviews, both PM Modi and Amit Shah had asserted that the Indian stock markets will trade strong after election results, which was inferred by many in the Opposition, including TMC and Congress, as stock advice.