A stock analyst has to face long-term structural pressures4 min read 15 Jan 2015, 07:36 PM IST
The investment community can collectively and persistently, through advocacy, bring about a change
Both in India and the US, investment research has been making news but for all the wrong reasons. On 26 November 2014, a research analyst was reportedly remanded to custody by a Gurgaon court on a complaint filed by a company whose stock the analyst covered. Earlier, in 2011, the analyst’s report on the complainant company’s stock was seen as a trigger for a heavy sell-off in that name. In 2012, the analyst published another report on the same company, subsequent to which the company is said to have filed a suit in India against the analyst and other associates. The research firm where the analyst worked, too, has been reported to have filed a suit in Canada against the complainant company. Separately, notably, the group of companies associated with the complainant company was criticized by India’s capital markets regulator, Securities and Exchange Board of India (Sebi), in 2013, for holding six annual general meetings in a span of seventy five minutes.