What SEC should do now?

lokuayya · 1 What SEC should do now? Sat Jan 07, 2012 6:54 am

lokuayya

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Much hyped new SEC boss also seems to have opted to sleep .Credit or no credit ,whatever, new SEC should let the public know about their clear policy for the new year.
So many speculation floating around about SEC rulings ,therefore SEC should clear it.
Bringing investors back to market is not easy.I dont say SEC ruling is only cause but it is a major one.
Bangladesh even let the black money in to the equity market after the crash.They succeeded.
Something drastic should be done .
I think amount of foreign exchange outflow also making heavy pressure on central bank.

Quibit · 2 Re: What SEC should do now? Sat Jan 07, 2012 9:15 am

Quibit

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One cannot expect boss of SEC to turn the market around. Market is determined by free market forces of demand and supply. If any person interferes with these forces, it will eventually result in dire consequences. Like what happened in the past with regard to price ban etc. Further the pushing stock prices up or down is not the responsibility of the regulator. Regulator is there to regulate the market and provide a level playing field for all investors. If one expect SEC to market stock, then it may be a good idea to form a separate investment promotion arm instead of mixing the regulatory objectives.

Instead it is important that the decisions taken by the regulator is taken with proper duty of care and wider consultation. All the stakeholders such as brokers, investors, financiers etc.. should be consulted and their opinions should be sought before any decison is implemented. It is importnat to take the right decision instead of taking just a decision. Wrong decision may have long term consequences to the entire economy.

Market is currently going through a phase of correction, therefore any decision taken by SEC will only have a short term impact. Furthermore SEC is going through a transition, therefore we cannot expect proactive decsions from the SEC.

It is upto investors to undertand the Risk Return co-relationship of the stock
market investments as against the other investment opportunities and invest wisely.

Blaming SEC or regulators is futile and not justifiable.

kaka · 3 Re: What SEC should do now? Sat Jan 07, 2012 11:57 am

kaka

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Agree with Quibit, but SEC should take necessary action to protect investors rather sleeping Evil or Very Mad

lokka1 · 4 Well said Quibit Sat Jan 07, 2012 12:13 pm

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Quibit wrote:One cannot expect boss of SEC to turn the market around. Market is determined by free market forces of demand and supply. If any person interferes with these forces, it will eventually result in dire consequences. Like what happened in the past with regard to price ban etc. Further the pushing stock prices up or down is not the responsibility of the regulator. Regulator is there to regulate the market and provide a level playing field for all investors. If one expect SEC to market stock, then it may be a good idea to form a separate investment promotion arm instead of mixing the regulatory objectives.

Instead it is important that the decisions taken by the regulator is taken with proper duty of care and wider consultation. All the stakeholders such as brokers, investors, financiers etc.. should be consulted and their opinions should be sought before any decison is implemented. It is importnat to take the right decision instead of taking just a decision. Wrong decision may have long term consequences to the entire economy.

Market is currently going through a phase of correction, therefore any decision taken by SEC will only have a short term impact. Furthermore SEC is going through a transition, therefore we cannot expect proactive decsions from the SEC.

It is upto investors to undertand the Risk Return co-relationship of the stock
market investments as against the other investment opportunities and invest wisely.

Blaming SEC or regulators is futile and not justifiable.

Well said Quibit. You have echoed the sentiments of the majority of this Forum well.
Lokka1

Kumar · 5 Re: What SEC should do now? Sat Jan 07, 2012 2:01 pm

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Nothing. They need to leave the Mr.Market itself.
No one can beat the Mr.Market but beaten by him time to time.
Bitter truth he needs a correction.(massive in my view)

UKboy · 6 Re: What SEC should do now? Sat Jan 07, 2012 7:30 pm

UKboy

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Nice 1 QB.
I feel really sorry for the former DG and Chairman. I can remember there were 1000's retailers went against both of them.
The new SEC should leave the market as it is. Index badly needs to hit the bottom before start climbing or become stable.. Any process that artificially helps to change this, will give a temporary up turn but ......................... When I see our economic status.......I really don’t know how long it can hold that green colour.
scratch

P.S I heard that SEC will introduce a new index in this year.

lokuayya · 7 Re: What SEC should do now? Sat Jan 07, 2012 8:33 pm

lokuayya

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yes as qubit said market should be allowed to behave free. former sec interfered the free market ,so new sec should remove at least those interfering rulings.
sri lankan economy had never been looked good.now also no different ,but at least little better than those days.

manula · 8 Re: What SEC should do now? Sun Jan 08, 2012 12:25 pm

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UKboy wrote:Nice 1 QB.
I feel really sorry for the former DG and Chairman. I can remember there were 1000's retailers went against both of them.
The new SEC should leave the market as it is. Index badly needs to hit the bottom before start climbing or become stable.. Any process that artificially helps to change this, will give a temporary up turn but ......................... When I see our economic status.......I really don’t know how long it can hold that green colour.

P.S I heard that SEC will introduce a new index in this year.

Retailers blamed the former DG and Chairman due their unneassary rules make the stock makrekt fall down, It was moving up and down nicelly (even artiifcal) in those days. As i think also marekt has to be run freely.. same we can say like free economy.