Real Life Stock Manipulation was seen in the Aster Silicates Stock as Shady Operators blatantly performed a “Pump and Dump” on the stock.Midfield Industries followed with another small Cap IPO being pushed up to stratospheric levels without any fundamental justification.Greater Fool Games have continued with the Prakash Steelage Stock.The mainstream media is purposely blind touting the opening days gains of this stock as Resurgence of Indian Primary Market.Indian Stock Market is controlled by a small number of individuals/organizations with most of the trading volumes in the hands of these “Operators”.Despite such brazen shenanigans,the stock market regulator SEBI seems strangely asleep at the wheel.Here is an interesting article about the shallowness of the Indian Stock Market and concentration of power in the hands of a few individuals.

How hollow is the Indian Stock Market? – II – MoneyLife

How wide is the public participation in the shining new India’s financially successful stock exchanges? Here are some startling facts disclosed by minister of state for finance, Namo Narain Meena, in response to a question (1692) asked by Mohammed Adeeb, a Member of the Rajya Sabha.

On 10th August, the Minister said that trading in the top 10 companies accounted for nearly a quarter (24%) of the cash equity market turnover on the National Stock Exchange (NSE) in the April-June 2010 period. In the derivatives segment (equity futures and options) trading in top 10 companies rose to a massive 38% of all turnover. The NSE is a near-monopoly. It has a market share of 96% (cash and derivatives combined) and has absolutely no competition in the derivatives trading segment. Trading in derivatives is seven times that of the cash segment, accounts for the bulk of its profits and therefore fat salaries of the very few at the top.

Also, contrary to perception, institutional investors do not dominate the market. In fact, 52% of the turnover in the cash market as well as derivatives comes from retail investors, high net worth individuals and corporate investors. This is hardly a market that can hope to support a big disinvestment programme by the government or even the fund-raising plans of large Indian companies. No wonder, retail subscriptions to public issues have dwindled.

It does not take a rocket scientist to figure out that stocks are being manipulated to the detriment of the small investors.Experienced people in SEBI would surely know of such manipulation but they are not doing anything.The Prakash Steelage has followed the “Pump and Dump” Script to the letter with the stock in the process of being dumped.The stock fell 13% for no apparent reason and I expect it to soon fall far below its issue price.Note the Promoters of this Stock have already been convicted of Tax Evasion.