I really don’t know what title to give to it, this is the best I could think of. Recently around the end of February, SEBI. The securities and exchange board of India warned the mutual fund companies about the froth building up in the Indian stock market among the small and mid-cap stocks, this led to some panic among the retail investors and led to a selling spree of small cap/ mid cap stocks in the market. I may be biased due to the fact that I was holding small cap stocks at the moment but I just found it completely unnecessary for SEBI to do so. Just for some context I’ve been trading and following up. 

SEBI is a regulatory body, it needs to make sure no unlawful act is taking place in the market and no massive manipulation/ insider trading is going on, If there even is overvaluation (froth means overvaluation of stocks) it does not need to point it out or comment on it the free market mechanism, law of supply and demand will make sure the prices come to the right level overtime. There are chart patterns which might show trend reversal or a particular trend which breaks due to such fundamental news, which I know is a part and parcel of the market but I just don’t expect a capitalist, free market economy to have such forms of government intervention. 

~ Shubh Om Kanchan