Why had companies opposed the reduction in face value to one rupee? Their argument was that investors tend to create multiple folios thereby increasing the cost of servicing shareholders. Many companies came up with examples of how the ability to buy one share was already raising costs-add to this a face value of one rupee and there will be a servicing nightmare. In a paperless system, we are...

The capital market is now in dangerous territory and many large investors believe that upward bursts as well as troughs smack of desperate manipulation by over-leveraged investors. There is also a serious concern about the quality of money flowing into the market. In the last fortnight, our attempts to get to the bottom of this endless rush of money willing to bet on stratospheric share prices...

What is the difference between hedge funds and mutual funds? Hedge funds are like mutual funds in some ways. Investment professionals in a hedge fund pool in money from investors to be managed - exactly like the mutual funds do. And, subject to some minor restrictions, investors in hedge funds can withdraw their money as they can in a mutual fund. Nothing else is similar. Hedge funds go after...