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Last Updated : Jan 15, 2018 09:06 AM IST | Source: NEWS18.com

Uday Kotak calls rising financial savings a 'bubble', says money going into few hundred stocks

"Money is coming to a broad funnel and it’s going into a narrow pipe where massive amount of Indian savers’ money is now going into few hundred stocks. And you come back to the question of how good is the governance of these companies.

 
 
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The country's richest banker and vice-chairman of Kotak Mahindra Bank, Uday Kotak, has expressed concerns over the surging stock market and India's financial savings going into selective stocks only.

"Money is coming to a broad funnel and it’s going into a narrow pipe where massive amount of Indian savers’ money is now going into few hundred stocks. And you come back to the question of how good is the governance of these companies.

The amount of money that’s going into small and mid-cap stocks is something on which we have to ask tough questions. You’re pushing all this (money) into a narrow funnel which inevitably runs the risk of a bubble," said Uday Kotak in an interview to Indian Express.

Kotak also headed a Sebi committee which submitted a report last year on changes in corporate governance rules for listed firms. Talking on the same he said, “Keep in mind now you have EPFO money, insurance money, pension, investors’ and savers’ money.

People think nothing can go wrong. I would increase my level of alert from the policy point of view and dramatically improve the level of governance and transparency.”

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First Published on Jan 15, 2018 09:06 am
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