No one seems to care enough to do something to effectively address this issue. Of course, there have been so many articles that have appeared in various newspapers which give various solutions, but so far no action has been taken by those concerned.
Regulators’ collusion with Stock market investors actually created the mess that we're in right now, and they are oblivious to the agony experienced by the people they're supposed to represent and protect.
Not following the rules has been the name of the game for a long time and that appears to be dictated by their level in the social hierarchy which they feel they must exercise.
The time has now come to eliminate that acquired superiority complex derived by their inferiority and selfish thinking.
The regulator’s role is mostly behind the scenes -- not actually driving the ship, just plotting the course. It will hurt, sure. But it must happen. If not now, it will be much worse later. There are the rules and then there are the ethics that stakeholders are expected to follow regardless whether they are major investors or not. All stakeholders must follow these rules and ethics to the letter. These rules and ethics make the capital market. We want the winds to blow and the seas to churn. We need the government to step out of the way and let the natural forces of economics to take hold. We need the media to tell the truth about what's happening.
We need transparency in the financial markets. Nothing is workable if it's not transparent. Transparency has to be at the root of every resolution, of every solution. Keep that in mind, because a lack of transparency is currently what's missing and what continues to hamper any workable solution to the problems we've been trying to tackle.
No market can survive on manipulation, insider trading or ‘pump and dump’. The response of the regulator may not be the ideal, but no response at all would have been irresponsible.
The regulator thus has a statutory obligation to risk minimize and mitigate the implications to the economy, to the local and global reputation of the capital market and to the role it plays as a conduit for fund raising.
It has also to ensure that the capital market is a forum for rational, individual investors whose pockets are less deep than those with many cash cushions to fall back on and who have been enjoying that warmth for two decades.
Like cancer, corruption spreads quickly and always seems impossible to cure. It drains economies, costs jobs, breaks down the human spirit and, if we don’t take a stand and fight it, it soon becomes the norm. The golden rule tells us that we must “do unto others what you want done to you”. Lead by example and set the “right” tone. Do the right thing,” no matter what the cost to your organization and personal lives. Every faith teaches us that we reap what we sow. No good deed erases a wrong deed.
The Government is committed to protecting the public from unscrupulous entrepreneurs or those who disguise themselves as philanthropists but destroy the people’s wealth. SEC, the regulatory body should not bow to any pressure against investigating allegations of market manipulation and undue price fluctuations.
You must first learn to do the right thing no matter what the cost. They must know right from wrong. It is important and necessary to ensure a level-playing field and when these rules are applied, they must be applied equally to all. Let’s hope the market will settle down this year and bring the necessary returns to deserving investors.
Asoka Samarakone
Kalagedihena
(The writer is a retired police officer, a veteran investor in the stock market)
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