The calibrated campaign to trip the Reliance Power IPO using court cases filed by investor grievances fora, media attacks and analysts questioning the valuations has hurt the Indian stock markets like never before. But the attempt to ensure a lacklustre listing is a blow to the fairness aspect of the Indian stock markets.

There is a need to probe why the ‘victim’ company is being targeted even when everyone knows that a conspiracy is in play. In the markets, everyone is talking about the involvement of tainted brokers and bear operators in India and abroad, who plotted the downfall of the markets and hurt the interests of the small investors.

The investigators must also explore whether the rumours of the rival camp working in conjunction with these unscrupulous brokers and bear operators are true.

Why should retail investors suffer?

I met a friend at the weekend who made me realise how badly hit people are because some of malicious games.

My friend had raised the following concerns:

–Retail investors are wondering as how they should suffer for no fault of theirs. They are having doubts whether the blame for the lacklustre listing of Reliance Power IPO could be put squarely on the global meltdown or to some other malicious intentions.

–Investors are are seeking answers to the reasons which suddenly turned the sentiment so bearish in the Indian market

–What is perhaps even more surprising is that when the world’s biggest bulge bracket investment banks, domestic institutional investors, high net worth individuals and smaller retail investors subscribed to as much as Rs 753,000 crore (USD190 bln) to the Reliance Power IPO by January 18, 2008, why is the scrip facing so much bear hammering

— In fact, not just the Reliance Power IPO subscribers but investors of all Reliance ADAG company suffered in silence during the carnage that ensued during the listing period. Even the scrips of Reliance Energy, Reliance Communications and Reliance Capital were dragged down by the ferocity of the backlash.

– Preliminary investigations have revealed that a rival group, which worked with tainted brokers and hedge fund operators, was responsible for these setbacks to the investors.

– The entire operations are being initiated by the rival groups from leading overseas financial centres like London and Mauritius

– The carnage also ensured that investors would be wary of Reliance ADAG’s next public offering of Reliance Infratel for which it has already filed the draft red herring prospectus.

My friend is very influential, and has good contacts in the financial world. He had said it was time investors demanded an independent judicial inquiry into the entire episode…

During the weekend, I had met many more investors who have been echoing similar demands. Is the Government listening?