A fine line

Regulator should not comment on market prospects

The Securities and Exchange Board of India (Sebi) is said to be contemplating releasing regular “risk-factor disclosures” on market trends. The regulator hopes that by periodically sharing more information, and divulging its own observations, it will aid investors in decision-making and, thus, help them break out of the “herd mentality” that often drives the markets.  Reportedly, it has been mooted that these disclosures can focus on investor behaviour over a time period, profits or losses, the market segments that have been profitable or loss-making, areas of interest, etc. This may be a response to the recent losses sustained in a