Uday Kotak: Amidst the huge fall in the stock market, Uday Kotak said, there is no sign of bubble in the market.

Midcap – Smallcap Stocks: After the huge rise in the stock market in recent months, there is a fear of a bubble in the prices of smallcap and midcap stocks, which is likely to burst any time. Is. Due to this, panic selling is seen in midcap and smallcap stocks in the market. Meanwhile, the country's veteran banker and founder and director of Kotak Mahindra Bank, Uday Kotak, assured the investors that there is no sign of bubble in the Indian stock market. He said that there are adequate resources in our system to monitor and deal with such situations.       

SEBI Chief and Uday Kotak do not agree!

Addressing the SEBI-AISM conference, Uday Kotak said that he accepts the presence of some froth and bubbles in the Indian markets but said that the situation is not out of control. Recently, SEBI Chairperson Madhabi Puri Buch had expressed concern about the bubble forming in smallcap and midcap stocks in the market. He said that bubbles cannot be seen forming in the market because it is not in the interest of investors.  

Sebi troubled by absurd rise in smallcap-midcap stocks 

Ever since the SEBI Chairperson has expressed concern over the rise in these stocks after the strong rise in midcap and smallcap stocks in the market, strong selling is being seen in midcap and smallcap stocks. Recently, SEBI had asked mutual fund body AMFI to prepare a policy for all mutual funds to take care of the interests of investors investing in small-cap and mid-cap schemes. SEBI has asked AMCs and fund managers to take steps that control inflows in the interest of investors. In its order, SEBI has asked all the asset management companies to make this policy public on their website within 21 days after taking approval from the trustees.

Huge investment in small cap funds raises concerns 

The flood of investments in smallcap and midcap funds has increased the concern of stock market regulator SEBI. SEBI is worried about how smallcap and midcap funds of mutual funds will behave if there is a sharp decline in the stock market. But Uday Kotak has made it clear that there is no sign of bubble in the Indian market.  

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