All malpractices of Harshad Mehta, Ketan Parekh era back via Kolkata: Harsh Goenka

He also appealed markets regulator and the to step in and investigate before small investors suffer severe losses.

"With a booming stock market, all the malpractices of Harshad Mehta/Ketan Parekh era are back primarily in Kolkata," said the Chairman of RPG Enterprises who is among the most widely followed Indian businessmen on social media.



With the domestic equity market is flush with funds from retail as well as other domestic investors, the combined market capitalisation of all listed stocks on the BSE has zoomed above a record high level of Rs 400 lakh crore. While both Sensex and Nifty are near all-time peaks, the boom is more pronounced in smallcaps and SME stocks, which are giving multibagger returns in a matter of few days.

On Friday, Nifty hit an all-time high of 22,794.70 before ending the session weaker by 173 points as speculations related to income tax tweak spoiled the market mood before Finance Minister Nirmala Sitharaman denied the rumour.

Earlier in March, Sebi chief Madhabi Puri Buch had openly raised the issue of froth building up in smallcaps and midcaps and also said there are signs of price manipulation in the equity market. Her comments comparing the valuations to "irrational exuberance" led to a correction but again in April smallcaps touched fresh peaks.

"There are pockets of froth in the market. Some people call it a bubble, some may call it froth. It may not be appropriate to allow that froth to keep building," Buch had said.

Sebi had also ordered mutual funds to conduct stress tests in small and midcap funds to see if they can manage huge redemptions in the event of a market downturn.