AAP MP Sanjay Singh calls for Rajya Sabha discussion on stock market crash

New Delhi: Aam Aadmi Party (AAP) MP Sanjay Singh has submitted a notice in the Rajya Sabha under Rule 267, seeking an urgent discussion on the sharp decline in the stock market, which has led to massive financial losses for retail investors. Highlighting the gravity of the situation, Singh stated that over the past five months, investors have collectively lost Rs 294 lakh crore due to a market downturn that has particularly impacted middle- and lower-income investors.

In his notice addressed to the Rajya Sabha Chairman, Singh emphasised, “Over the past five months, the market has witnessed an unprecedented downturn, inflicting significant financial losses on millions of retail investors. This decline has been particularly severe for middle- and lower-income investors.”

According to Singh, the Bombay Stock Exchange (BSE) has plummeted by 15 per cent, while the NIFTY index has dropped by 16 per cent. The impact has been even more severe on mid- and small-cap stocks, which have crashed between 20 per cent and 25 per cent, leading to significant wealth erosion among investors from smaller towns.

He stated, “It is crucial to note that millions of retail investors from smaller towns had primarily invested in mid- and small-cap companies, resulting in substantial financial losses. During this period, investors collectively lost Rs 294 lakh crore.”

Singh underscored the need for a thorough review of the regulatory framework governing the stock market. He called for an evaluation of the role played by the Securities and Exchange Board of India (SEBI) and other regulators in preventing market manipulation and excessive speculation.