Was there a bear cartel associated with some of the opposition parties that planned and triggered the September-October stock market crash?

 

The Prime Minister’s Office (PMO) has reportedly advised the Securities and Exchange Board of India (SEBI) to probe into the stock market crash in September and October, which it suspects was perpetrated by a politically-aligned bear cartel to severely dent the image of the PM among the voters.

 

The PMO is said to have advised the SEBI to examine the causes to the fire sale of Dewan Housing Finance’s (DHFL’s) AAA-rated debt paper by DSP Mutual Fund timed just days ahead of September series derivative expiry, and the subsequent 60 percent crash in the company’s share price.

 

On September 21, both BSE and NSE crashed as DHFL shares were badly hammered along with the shares of the other NBFCs.

 

DHFL's thrashing was so bad that the -30 share BSE Index Sensex plummeted 1,100-point before recovering on clarifications by the company.

 

Market intelligence shows that although the IL&FS financial mess had already come to light in late August, key equity indices were near record highs then and the markets were hit only after the crash in DHFL and other NBFC stocks. This piece of intelligence has made the PMO suspect a 'political conspiracy' against Narendra Modi.