Nishant Shah, CEO comments on the scarcity premium of stocks in an article by Neha Joshi on SEBI’s 211th Board Meeting.
The more limited the liquidity of a specific stock, the greater the likelihood that a part of its valuation is driven by scarcity over fundamentals, which is not ideal,” said Nishant Shah, managing partner & CEO of Jonosfero. “Some feel that letting the price of, say, 10% of the stock dictate the value of the whole is akin to the tail wagging the dog. Worse, it is difficult to isolate the scarcity premium from the price of the stock. So this is a positive move in the long run.
Read the full article below – Sebi unleashes mega reform package for capital markets; IPOs, governance, new investments in focus | Stock Market News
