“ The government said on Tuesday that the regulatory framework in the country was stronger than ever before but investors should not run after highly priced shares and instead look for antecedents of company and promoters.”
"I have been urging upon that investors should not go merely after price, they must look at the value," Corporate Affairs Minister Prem Chand Gupta told a day after his ministry issued public interest advertisements warning investors not to be swayed by misleading claims of companies trying to tap capital markets.
Asserting that investors' protection was highest on the priority list of his ministry, he said, "In the past, millions of investors have been duped by fly-by-night operators (that flooded the market with their IPOs). But the regulatory framework is much stronger today than ever before."
Gupta, who had launched a concerted drive against the vanishing companies after taking charge of the ministry that earlier operated as a department under the Finance Ministry, said, "The UPA government has taken several concrete measures to protect the interest of investors."
Two months ago, he said, the ministry observed an investor awareness month to educate investors in remote areas. The Institute of Chartered Accountants of India and Institute of Company Secretaries of India also supported the programme.
Commenting on buying frenzy in stock markets which pushed up the BSE Sensex by almost 700 points on Monday, he said, "I have always being urging upon the investors to be careful. Before they put their money in any company they must satisfy themselves about the company and its promoters."
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