Can GameStop frenzy happen in India?4 min read . Updated: 29 Jan 2021, 08:04 PM IST
Experts sat the regulations put in place by Sebi make it very difficult to carry out GameStop-like trade in India
If you are someone who is into stock investing, you might have noticed the stories doing rounds about the US company called Gamestop. The stock price of this video game retail company surged a massive 1,900% in a brief period of one month. It has surged from $17 on 4 January, 2021 to $348 on 27 January. What is more interesting is the reason behind the surge. Basically, members of a Reddit group called WallStreetBets came together to manipulate the price of the company. They started to buy shares of the company as they came to know that a hedge fund is holding big short positions in the stock. This led to a short squeeze kind of situation and led to huge losses for the hedge fund which is filing for bankruptcy. So, the question that arises is can something like this happen in India?
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