Prajna Capital - An Investment Guide

By tracking promoters’ move in the open market, you can get a feel of the direction of a stock price THE January bloodbath on Dalal Street this year left stocks of many heavyweight as well as emerging companies quoting at cheap prices. What followed in the next five months was that many promoters used this slump to acquire their company’s shares from the open market. This buying from the secondary market by promoters to enhance their holdings is also known as "creeping acquisitions" . You may, however, ask how it makes a difference to your portfolio. According to analysts, by tracking promoters’ move in the open market, you give yourself a chance to ascertain the direction of a stock price you are holding. Here’s an insight into how you can follow promoters’ buying and selling activity in capital markets to your advantage. FIRST THINGS FIRST Is it legal for promoters to shore up their stake by buying from the open market? As per Securities and Exchange Board of India ( SEBI )...