TMC MP Saket Gokhale Urges SEBI to Scrutinize Modi and Shah's Election Remarks Amid Allegations of “Market Manipulation” ahead of 2024 Lok Sabha Results

Trinamool Congress Rajya Sabha MP Saket Gokhale on Tuesday has for the second time written to SEBI urging the body to investigate what he alleges as "manipulation" in trading activities leading up to the declaration of 2024 Lok Sabha election results. Gokhale, in a letter to SEBI Chairperson Madhabi Puri Buch dated June 11, raised concerns over stock market fluctuations following the announcement of private exit polls ahead of the declaration of the actual poll results.

In his letter, Gokhale specifically pointed to statements made by Prime Minister Narendra Modi and Home Minister Amit Shah during the election campaign, suggesting that their remarks hinted at positive election outcomes for the BJP and potentially influenced investor behavior. He emphasized the need for SEBI to scrutinize whether entities associated with Modi, Shah, or the BJP benefited from the market volatility observed on June 3-4. “PM Modi and BJP do not run a brute-majority government anymore. Along with SEBI action, this matter will also be taken up in Parliament if required," posted the TMC Rajya Sabha MP on social media platform “X”.

Underscoring the SEBI regulations, Gokhale emphasized that only registered investment advisors are authorized to provide investment advice to the public. He argued that Modi and Shah, in their capacities as political leaders, lacked the credentials to offer such guidance, but their statements were likely perceived as credible by investors. “"Neither Shri Modi nor Shri Shah are investment advisors. Further, these statements were made in their capacity as Prime Minister and Home Minister of India, respectively. It is natural that when 2 such powerful Individuals proffer investment advice, investors are likely to take it with a lot of credibility and assurance," reads the letter submitted by Saket Gokhale.

On June 5, Gokhale had previously sent a similar letter to SEBI, urging an investigation. Following the announcement of Lok Sabha results, Indian stocks experienced significant declines as the incumbent BJP's performance fell short of expectations, indicating a potential deviation from exit poll projections. Investors who had initially gained from the positive exit poll predictions for the BJP-led NDA chose to capitalize on their profits. On June 3, the market had surged in response to favorable exit polls for the BJP. However, on June 4, the Sensex plummeted by 4,389.73 points and the Nifty by 1,379.40 points when the 2024 Lok Sabha election results were revealed.

Previously, Congress leader Rahul Gandhi had also raised similar concerns, accusing Modi and Shah of providing "investment advice" during the election campaign. He called for a Joint Parliamentary Committee probe into what he termed as the "biggest stock market scam." In response, the BJP refuted Gandhi's allegations, accusing him of attempting to mislead investors and create uncertainty in the market. Union Minister Piyush Goyal, addressing a press conference, dismissed the allegations against Modi and Shah, stating that market fluctuations during elections were normal and driven by various estimates and predictions.