‘Insider trading=developer-agent collusion’: Reddit post calls for SEBI-like regulatory body for real estate

The Indian Securities Market has always been governed by the Securities and Stock Exchange Council in India (SEBI), an organizational body aimed at preventing fraudulent practices such as pumps and discharge plans, internal circulation, and artificially inflated evaluation. However, the growing section of the public is now calling for a similar body to oversee the real estate sector, as similar unethical practices continue.

The recent Reddit publication has sparked a discussion about the stark similarities between manipulating the stock market and doubtful tactics in the real estate industry, especially in Bangalore. Calling for a strict organizational body similar to Sebi in real estate, and directed the post -parallel between developers and agents participating in the markets manipulation strategies for those in shares trading.

Pumping and emptying the noise before launch

One of the most common fraud in the stock market is the pump and discharge scheme, as the artificially misleading information is hidden from the stock price before investors separated their holdings for profit. A similar tactic in real estate is noted by noise before the launch project.

“The developers create a stir with shiny brochures, exaggerated growth expectations, artificial scarring, raising initial demand and prices.” “Once they get a large number of reservations, the” pump “may disintegrate, leaving buyers with exaggerated properties.” However, due to the non -liquid nature of real estate, prices do not decrease at the speed in the stock market, leaving buyers with long -term assets.

Trading from the interior against the developer reproduction

In stock markets, trading from within includes individuals who use distinctive and non -general information to gain a financial advantage. In real estate, a similar practice occurs when the developers share exclusive information about the upcoming infrastructure projects and changes in the division of regions with the chosen real estate agents.

“The developers may share distinct information about the upcoming infrastructure projects or changes in the division of areas with chosen agents, which allows them to buy and sell real estate at inflated prices before the public public realizes.” “This creates an unequal stadium.”

Artificial scarcity and land banking services

Stock market troubles often affect prices by controlling the supply. A similar strategy in real estate in Bangalore is observed through land banking services, where developers maintain vast areas of the ground to create an artificial scarcity.

“I coincided with real estate owners, who hinder their part of the units in large societies and amplify prices,” Reditur claimed. “Even for large societies, developers and landowners, the supply is intentionally withholding to maintain prices artificially high.”

Floive information and evaluation

Sometimes, stock markets see companies whose value amplifies through wrong information. The Reddit Post claims that real estate developers are misleading similarly buyers about amenities, infrastructure and future development plans.

“Unfortunately, Rira (Real Estate Regulatory Authority) was not very effective here,” the user wrote. “I have seen the cases where the amenities were ready 5-6 years after people moved.” The illusion of anxiety is that although the presence of RERA, its application is still not sufficient to address wrong practices in the deep industry.

Market morale processing

Market morale in stocks can be affected by targeted information campaigns and rumors. Likewise, developers and agents in the real estate market in Bangalore use social media and advertisements to feed the fear of its loss (FOMO), which artificially leads to demand and prices to the top.

“One of the interesting ways someone tried to stimulate urgency inside me:” Sir, our systems have been hacked, which is the only reason that made us increase prices. On any day now, the system will be fixed and we will increase prices. ”Reddit user shares, highlighting the deceptive sales tactics used by developers.

The need for organizational control

With these parallels that are drawn between fraud in the stock market and real estate manipulation, the call to a SEBI organizational body for the housing sector grows with a higher voice. While RERA was presented to improve transparency and accountability, critics argue that its influence was limited.

As real estate continues in one of the most important investment methods for Indian families, the strongest supervision is very important to prevent buyers from declining in misleading practices.