Modi government’s failure to regulate the stock market

The Indian stock markets have suffered a massive crash, with the Sensex falling 4,000 points in a month and wiping out Rs.40 lakh crore in market capitalization. The Nifty 50 has now recorded its longest losing streak since its inception in 1996, exposing deep flaws in the financial system under the Modi government.
This crisis is not just a market correction—it is the result of Prime Minister Narendra Modi and Home Minister Amit Shah’s deliberate inaction and their open support for big corporate players at the expense of ordinary investors. Their failure to regulate the stock market has allowed rampant manipulation, unchecked corporate fraud, and erosion of public trust in India’s financial system. Instead of addressing regulatory loopholes, Modi and Shah have actively shielded their favored business allies, ensuring that a handful of corporations benefit while retail investors suffer massive losses.
The latest revelations from Hindenburg Research, exposing SEBI’s compromised leadership, further prove that market watchdogs have been turned into puppets of the Modi government. The regulatory failure is not accidental—it is a direct consequence of a system designed to favor corporate cronies. When Rahul Gandhi raises concerns about a “compromised umpire,” he is pointing to a larger truth: the Modi government has dismantled the very institutions meant to protect investors.
Instead of taking responsibility, Amit Shah is now advising investors to “buy before June 4,” openly using the election outcome as a stock market gimmick. Meanwhile, Modi is making hollow promises of record highs post-elections, despite the clear evidence that his policies have caused the current crisis. Their blatant disregard for investor security proves that for them, the stock market is not about economic growth—it is about manipulating public sentiment for electoral gains.
India’s markets need real regulatory oversight, not a government that enables corporate greed. Investors deserve a system that is transparent, fair, and protected from political interference. Modi and Shah’s failure to act has cost Indian investors billions, and it is time they are held accountable for this financial disaster. The most sufferers are retail investors who invested their hard earned money in share market because of PM Modi and Amit Shah appeal to buy stocks.
Rajesh Kumar Sethi
National Coordinator, AICC
Minority Department
in-charge of Manipur