Almost everyone in the country is hoping for a sustained revival in the capital market. Our Budgets have always sought to give a fillip to equity in the form of tax incentives as a revival in the market would buoy overall economic sentiment.
But it is now agreed that the state of the economy, though important, is not really the sole factor that drives the market. There is a certain amount of faith that investors need to have in the market.
There is certain information that an investor is looking for, which is not available for the ordinary investor. Therefore, this is the starting point of the idea of developing a rating mechanism for equity.
The first response to such an idea may be one of surprise as such a thing has never been done before. Not really, because if you look at the investment bank reports on companies, they are actually advising you to buy or sell stocks based on certain parameters.
However, one has read about how these reports are not always free from
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
