https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Former IAS Officer Demands ED Probe on SEBI’s Inaction on June 4 Stock Market Crash

The former bureaucrat wants to know if market regulator SEBI took any action to calm the market or initiated an investigation to ascertain the reason behind sharp fluctuations in stock market movement
Indian Masterminds Stories

Former IAS officer E A S Sarma, who served as a Secretary in the Ministry of Finance between 1999 and 2000, has, in a letter to Economic Affairs Secretary Ajay Seth (1987 batch IAS officer), demanded an inquiry by the Enforcement Directorate (ED) into the June 4 stock market crash on the day of election results where Rs. 31 lakh crore of investors’ wealth evaporated into thin air.

Mr. Sarma wanted to know if market regulator SEBI took any action to calm the market or initiated an investigation to ascertain the reason behind sharp fluctuations in stock market movement on June 3 and 4.

He said, “It is disturbing that a combination of factors triggered a stock market surge on June 3, 2024, followed by a huge crash during the day that followed, wiping out the hard-earned savings invested in the market by small and marginal investors, allowing the bigger stockmarket sharks to profiteer at their cost. Even today, the stock market has not fully recovered.”

The contentious issue arose after the exit poll prediction of a resounding BJP victory, and the BSE benchmark Sensex shot up on Monday by 2,507 points or 3.4% to settle at a new closing peak of 76,469. However, a day later (when the results came out), the equity markets witnessed a bloodbath, with the Sensex tanking 4,390 points or 6% to settle at 72,079 – the worst single-day fall in 4 years! It must be noted that the Prime Minister himself had “predicted” a stock market surge on the 4th, namely, the date of counting of votes in the 2024 elections, conveying a hint that investors should invest in the stock market, as his government’s return to power would usher in further reforms.

Mr. Sarma said, “I am not sure what really prompted the PM to make such an ill-advised statement. His statement was followed by the Union Home Minister, who is reported to have added fuel to the fire by saying that investors should buy before 4th June. Where did the investor or investors who earned profits park their ill-gotten money? Is there a link to a money-laundering exercise? The Enforcement Directorate, if it can function independently, as it should, may be asked to investigate this possibility.”

He pondered upon the prospect whether the SEBI could have calmed down the market by countering the false statements. He said, “The Department of Economic Affairs cannot afford to remain passive and allow the culprits to go scot-free. It should ask the ED, CBI and CBDT to conduct a well-coordinated investigation in a time-bound manner so that the incoming new government, the newly elected Parliament and, of course, the public at large, would have to be apprised of this.”


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
NTPC_Vindhyachal_organised_Mega_Mass_Pep_Talk
"Safety is Power: NTPC Vindhyachal Ignites Workforce Spirit with Mega Mass Pep Talk"- Details Inside
G S Roshni
Kerala’s Fearless Forest Officer G.S. Roshni Rescues 16-Foot King Cobra with Bare Hands, Garners Praise & Critique
IAS Officers Indian Administrative Services (IAS)
Haryana Govt Moves for Forced Retirement of IAS Officer Rani Nagar After Prolonged Absence
moil india
MOIL Ltd Bags Prestigious IBM 5-Star Rating Award for Excellence in Responsible Mining
One Nation One Election
Former CJIs Endorse 'One Nation, One Election' but Flag Concerns Over EC's Powers
NLC-INDIA-resized-neyvili
NLC India Approves ₹1,631 Crore Capital Boost for Renewable Subsidiary, Secures $100 Million ECB from Japan’s SMBC
NMDC Steel Ltd
Priyadarshini Gaddam Gets 6-Month Extension as Director (Finance) at NMDC Steel Ltd - Know More About Her
ips-officer Latest
ED Records Statement in New Money Laundering Case Against IPS Officer’s Husband
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-07-07 at 3.15
The Martial Artist IRS Officer Who Conquered North East India on a Cycle
WhatsApp Image 2025-07-03 at 13.33
IRS Sanjay Bahadur: The Officer With a Pen That Bites | Video Interview
Inderjit Singh Air India
Is Air India Carrying The Burden of Split Before Privatisation?
ADVERTISEMENT
UPSC Stories
IAS SHWETA BHARTI Bihar
From Wipro to Civil Services: How Bihar's IAS Shweta Bharti Juggled a BPSC Job While Preparing for UPSC
IAS Shweta Bharti, from rural Bihar, balanced a full-time job and UPSC prep with discipline, cracked...
IPS Deepak Meghani
Deepak Meghani, IPS: A Journey of Focus, Failure, and Quiet Discipline
A passionate writer, he has authored several books in Gujarati, ranging from exam strategy guides to...
Sanish Kumar Singh
“If you want it badly enough, you’ll find a way,” Sanish Kumar Singh AIR 8, UPSC IFS 2024 
The real interview, he says, was much more humane. “The board was conversational. The chairman opened...
Social Media
G S Roshni
Kerala’s Fearless Forest Officer G.S. Roshni Rescues 16-Foot King Cobra with Bare Hands, Garners Praise & Critique
Beat Forest Officer G.S. Roshni’s first-ever king cobra rescue goes viral, earning her the title of ‘Green...
Kaziranga Baby Elephant
Chotu the Baby Elephant Reunited with Mother in Kaziranga: Retired IFS Officer’s Post Goes Viral
A baby elephant's emotional reunion with its mother in Kaziranga, shared by retired IFS officer Susanta...
PV Sindhu
PV Sindhu’s Visit to NADT Turns into a Wholesome Tribute to Legacy—and ‘Moolchandj
The Olympic champion shared nostalgic memories, met aspiring IRS officers, and sparked viral laughter...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
NTPC_Vindhyachal_organised_Mega_Mass_Pep_Talk
"Safety is Power: NTPC Vindhyachal Ignites Workforce Spirit with Mega Mass Pep Talk"- Details Inside
G S Roshni
Kerala’s Fearless Forest Officer G.S. Roshni Rescues 16-Foot King Cobra with Bare Hands, Garners Praise & Critique
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-07-07 at 3.15
WhatsApp Image 2025-07-03 at 13.33
Inderjit Singh Air India
ADVERTISEMENT
ADVERTISEMENT