Uday Kotak Raises Concerns: The Role of Power and Volume in Stock Markets

In a candid commentary on stock market dynamics, banking industry stalwart Uday Kotak expressed concerns over the influence of money power. He highlighted that the stock market should primarily promote capital formation and facilitate fair price discovery.

Voicing his thoughts on the social platform X, Kotak pointed out potential shortcomings in the existing business models of exchanges and brokerages, where a heavy reliance on trading volumes detracts from attention to market fundamentals. His observations come in the wake of regulatory action against manipulative trading practices.

Just after the market regulator's findings against Jan Street, a hedge fund involved in market manipulation, Kotak's comments shine a light on evolving market dynamics. Regulators have found the hedge fund guilty of manipulation, netting illegal gains of over Rs 4,800 crore, leading to its suspension and asset seizure.

(With inputs from agencies.)