With retail investors reeling from staggering losses, AAP MP Sanjay Singh has moved a notice under Rule 267, calling for an immediate discussion in the Rajya Sabha on the relentless stock market decline and the failure of regulatory mechanisms.
Over the past five months, investors have seen ₹294 lakh crore wiped out Bombay Stock Exchange (BSE) plunged 15%, NIFTY (National Stock Exchange Fifty) dropped 16%, and mid- and small-cap indices crashed by up to 25%. Sanjay Singh has warned that the crisis demands urgent government intervention to curb further damage and prevent future financial shocks.
In a notice addressed to the Chairman of the Rajya Sabha regarding a discussion on the same, AAP MP Sanjay Singh stated that he seeks to draw the House’s attention to the recent sharp decline in the stock market. “Over the past five months, the market has witnessed an unprecedented downturn, inflicting significant financial losses on millions of retail investors. This decline has been particularly severe for middle- and lower-income investors,” he added.
The AAP Rajya Sabha MP pointed out that in September 2024, the BSE benchmark index fell by approximately 15%, while the Nifty dropped 16% from its peak. Additionally, mid-cap and small-cap indices registered a steeper decline of 20–25%, making the situation even more alarming compared to the primary indices.
“It is crucial to note that millions of retail investors from smaller towns had primarily invested in mid- and small-cap companies, resulting in substantial financial losses. During this period, investors collectively lost ₹294 lakh crore,” he asserted.
Sanjay Singh emphasized that, in this context, it is imperative to conduct a thorough review of the functioning and effectiveness of regulatory bodies such as the Securities and Exchange Board of India (SEBI). It must be ensured that these regulators have taken effective measures to curb market manipulation, excessive speculation, and other irregular activities. Additionally, an assessment is necessary to determine how effective the implementation of policies has been in safeguarding investors.
In conclusion, Sanjay Singh urged the Chairman to allow a detailed discussion on this critical issue under Rule 267, enabling the government to take necessary steps to mitigate the crisis’s impact and prevent such occurrences in the future.
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