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Are Newspapers trying to influence spectrum auction negatively so that manipulators can bring down stock prices, asks Syngal
B K Syngal |  Guest Writer |  13 Feb 2014

In last few days, pink newspapers have raised hue and cry over the spectrum pricing that is being determined through a transparent auction process. They claim that the companies have already quoted high bids. Economic Times has even called it “winner’s curse” and advised Airtel to withdraw from 900 MHz band.

These newspapers are quoting some self styled analysts. I fail to understand who do they represent?

Are these analysts and journalists smarter than the in-house analysts and experts of the companies who are bidding? Do they know more than promoters about company’s strategies?

What these analysts and newspapers are doing is that they are trying to influence the auction process negatively. It is highly unethical on their part to make irresponsible statements that may have impact on stock prices of listed companies.

Most importantly, it is against the sovereign interest of the issuer, which is the government of India as the owner of these precious natural resources.

Perhaps, the intention of such reports, engineered as they are, is to depress the stocks now so that the speculators can pick them cheap and off load them when the public has forgotten what these self styled analysts had predicted and the stocks begin to perform better.

It must be understood that they are themselves saying that it could add only 10 to 15 paise per minute. In my calculations, I found that the impact will be much less.

The point being made is that it is most unethical on the part of these analysts to issue such irresponsible reports that undermine the auction.

Media should be careful in not publishing such reports. It only helps the manipulators and no one else.

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13 Feb 2014(IST)  
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