The Harsh Goenka tweet that drew severe criticism from brokers

After RPG Enterprises chairman Harsh Goenka tweeted that malpractices of Harshad Mehta and Ketan Parekh era are back and Sebi and the finance ministry should step up before retail investors suffer severe losses, the stock broker community is up in arms against the businessman and wants him to apologise. In conversation with Zee Business managing editor Anil Singhvi, ANMI president Vinod Goyal said that Goenka's statement was uncalled for and the businessman should have come up with evidence and report such incidents to Securities Exchange Board of India (Sebi).

Questioning about the validity of the extraordinary boom the stock market is going through, Goenka, who is active on social media, had tweeted that the promoters were increasing their profits unnecessarily and alleged that promoters and Gujarati-Marwari brokers were jointly carrying out this rise.

With a booming stock market, all the malpractices of Harshad Mehta/Ketan Parekh era are back primarily in Kolkata. Promoters are inflating profits (through profit entry) and in nexus with Gujarati-Marwari brokers driving their stock prices to unrealistic levels. It's time for…

— Harsh Goenka (@hvgoenka) May 4, 2024

When Singhvi asked Goyal's reaction to Goenka's social media post, he said, "His statement is uncalled for as he has made such a strong statement without giving any evidence to Sebi."

Goyal further said, "Sebi has such a strong surveillance system in place that any broker has no role to play in the pricing of a company's stock. If the regulatory body notices any unprecedented rise or fall in the share price of a company, it immediately inquires about the reason behind it. If the company's financials don't match with the sudden rise and fall of the stock, Sebi issues a notice to the firm.

"Goyal said that the brokers in Kolkata are disturbed by his statement.

"He is from Kolkata, and if he had any such information about market manipulation, he should have informed Sebi. He has such a strong social media presence that many of his followers have liked his comment. The statement has gained publicity in media outlets. There is fear among the broker community after his statement, and he should apologise for his comments." 
 
On the matter, ANMI also tweeted its reaction. It says the allegations are baseless, and if he has any evidence, then why doesn't he tell SEBI and the Finance Ministry.

In a tweet, ANMI wrote, "Mr.Harsh Goenka's accusing brokers of a particular community/region is highly condemnable.The allegation is unsubstantiated/without any basis of evidence & displays lack of knowledge of the stringent surveillance measures by Exchanges and SEBI." 

"Mr.Harsh Goenka's accusing brokers of a particular community/region is highly condemnable.The allegation is unsubstantiated/without any basis of evidence & displays lack of knowledge of the stringent surveillance measures by Exchanges and SEBI"@SEBI_India @FinMinIndia @NSEIndia

— ANMI (@OfficialAnmi) May 5, 2024