Trinamool MP seeks SEBI probe into stock market movements during Lok Sabha results

New Delhi [India], June 11 : Trinamool Congress Rajya Sabha member Saket Gokhale has written another letter to financial markets regulator SEBI, seeking a probe into the stock market activity in India ahead of the declaration of Lok Sabha election results. He has alleged "manipulation" in trading activities, a day after private exit polls were announced.
In a letter to the Securities and Exchange of India Chairperson Madhabi Puri Buch dated June 11, the Trinamool parliamentarian registered his complaint with the regulator, what he termed "stock market manipulation".
Gokhale has specifically demanded an investigation into statements made by Prime Minister Narendra Modi and Home Minister Amit Shah during the poll campaign, where they apparently "advised" people to invest in stocks hinting at positive election results for BJP.
During TV interviews, both Modi and Shah had asserted that the Indian stock markets will trade firm soon after election results, which was inferred by many in the Opposition, including TMC and Congress, as stock advice.
"PM Modi and BJP do not run a brute-majority government anymore. Along with SEBI action, this matter will also be taken up in Parliament if required," Gokhale wrote on his X timeline, attaching the letter he wrote to the SEBI.
"There was something very rotten about stock market fluctuations on 3rd and 4th Jun after rigged exit polls. The statements by Modi and Shah also contributed to losses of investors," said Gokhale.
Through the letter, the TMC leader also urged SEBI to investigate whether any entities linked to PM Modi, HM Amit Shah, or BJP made substantial gains or profits during the stock market volatility on June 3-4.
Further, citing SEBI rules, he noted that only registered investment advisors are allowed to provide investment advice to the public.
"Neither Shri Modi nor Shri Shah are investment advisors. Further, these statements were made in their capacity as Prime Minister and Home Minister of India, respectively. It is natural that when 2 such powerful Individuals proffer investment advice, investors are likely to take it with a lot of credibility and assurance," Gokhale's letter read.
Earlier on June 5 Gokhale had written a similar letter to the SEBI demanding a probe.
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.
Many investors booked profits they accumulated from the stock market gains they made a day after the exit poll predictions indicated comfortable majority for BJP. On June 3, the markets had risen sharply reacting to the positive exit poll predictions for the BJP-led NDA.
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.
Previously, Congress leader Rahul Gandhi had also alleged that Prime Minister Narendra Modi and Home Minister Amit Shah had given "investment advice" to people during the campaign for the Lok Sabha polls and there was a loss of lakhs of crores to retail investors also due to "fake exit polls". He had demanded a Joint Parliamentary Committee probe into the "biggest stock market scam".
Soon after, the BJP hit back at Rahul Gandhi's allegations and accused the Congress leader of "conspiring to mislead market investors".
Addressing a press conference, Union Minister Piyush Goyal said that the Congress leader "has still not overcome the opposition's defeat" in the Lok Sabha elections. Several opposition parties had come together to form the INDIA bloc to take on the BJP-led NDA in the Lok Sabha polls.
Goyal alleged that Rahul Gandhi wants to instill "fear in the minds of both the domestic and global investors, so that they do not invest".
"We all know equity markets react to various estimates and predictions during any elections, or for that matter any forecasts by banks and institutions. Ups and downs are normal even during a non-event," Goyal had said.