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Rifat Jawaid

Money is the root of all evil, says the Bible. Lack of money is the root of all evil, counters George Bernard Shaw. Paradoxically, the stock markets seem to easily prove both the aphorisms. Be that as it may, investors -- big and small - have always been attracted to the capital markets seeking that elusive pot of gold at the end of the rainbow. Greed invariably surpasses wiser counsel…

Many dreams have turned sour chasing that rainbow, none more so than during the present capital markets crisis that has dealt a body blow to all investors. Many have been moved to a life of utter despair, some others to as extreme a measure as ending that life: brokers, speculators, small investors -- the list is endless.

Some lost their entire life's savings in the stock market, some got away with mild monetary loss and a bruised ego, some others have been probably cured forever of the malady of the markets: but none can say with utter conviction that their dabbling in the bourses has left their family life entirely intact or has been without any squabbles or naggings.

Loss of money invariably leads to loss of face in friendly and familial eyes. More so if the instrument of the loss is the capital markets. I-told-you-so sort of statements fly thick and fast in your face. The family frowns upon you and begins to distrust your judgement and friends cite you as an example to warn others of the fate that could befall them if they let their greed for a quick buck overtake them.

This is the story of ordinary people who suffered extraordinary losses as the bourses plunged. And money wasn't the only thing they lost…

Black Friday. That is how the media dubbed it. On March 2, 2001, just hours after a market-friendly Budget boosted the Sensex 7.8 per cent to a peak of 4386.98, the 30-share BSE Sensex crashed to a seven-week low of 4095.16.

The Calcutta Stock Exchange defaulted on payment to the tune of millions. Both the Union Finance Minister and the CSE chief assured that there was no payment crisis: the payment had been 'merely delayed'. But the bloodbath continued and bourses across the country continued to plunge.

Important heads rolled, a probe into the market volatility was launched, arrests were made -- what was probably a high-stake game to many brokers and investors all of a sudden assumed ominous proportions.

The brokers, sub-brokers and investors, all realised this harsh truth only when the news of speculator Abhishek Banka and his wife Sona's suicide hit the headlines on March 19 in Calcutta.

While Banka and his wife Sona failed to withstand the liability of Rs 3.7 million following the slump at the CSE, those displaying a semblance of courage are now left to live a disconsolate life. For, the market crisis has altered their lifestyle drastically. From dealing in millions barely a month ago, such lots are now seen yearning for alternative sources of livelihood. Their once-crowded and well-furnished offices today bear a completely deserted look.

Visit any broker's office in the vicinity of the CSE, and it is a sorry spectacle. Most of these brokers are now idle and can be seen either whiling their time at playing cards or discussing the finer points of Sachin Tendulkar's batting prowess.

Even the CSE's trading hall has now been converted into a meeting point for 600-odd active share brokers, where they gather mostly to make inflammatory speeches against the management.

Frustrated and hopeless about future prospects, it is only natural that the afflicted players of stock market now find themselves caught in the whirlpool of despondency. Such is the level of pessimism that no one wants to even share his grief.

And if someone agrees to narrate his woes -- after a lot of persuasion -- he does so only on the condition of anonymity. These people are apprehensive about inviting the wrath of the Income Tax authorities, for a substantial chunk of the money that went down the drain in the recent crisis emanated from illegal financing. And Calcutta has the dubious distinction of being the biggest playground for unofficial badla operators throughout the country.

Vinu Bhai, who has been in share market business since 1975, is a dejected man today. Though he refuses to mention the exact extent of his loss, Vinu says the money lost in this year's payment crisis is beyond recovery.

He finds his life in total disarray as he is not only facing dissension from his financiers, but his increasingly inquisitive family members are also estranged.

Says he, " I had invested money at 18 different counters, mostly in IT scrips. Please don't ask how much money I lost. It is agonizing to be reminded time and again that I have actually lost such a staggering sum. Bhagwan dushmano ko bhi aisa din na dikhaye, maine kabhi sapne mein bhi nahi socha tha ki is budhape mein yeah din dekhna padega(God forbid, even my enemies shouldn't face such crisis. Never in my life had I imagined that I would be placed in such a quandary in my old age). I too would have been forced to end my life had my financiers not been flexible with me. They have agreed to accept their dues in installments, so that gives me a little respite."

By his own admission, Vinu Bhai doesn't feel like facing his wife and children back home. "Every time I return home," he adds, "I am frightened to answer all uncomfortable queries that my wife and daughters would be asking."

Abhijit Chowdhury (not his real name) had opted for voluntary retirement from a reputed public limited company four years ago. Unlike Vinu Bhai, relatively inexperienced Chowdhury jumped into the share market to make a quick buck. He invested all his life-long savings and compensation money he had got from opting for voluntary retirement in the stock market.

According to Chowdhury, he was tempted to enter the stock market after he saw many of his colleagues making minor fortunes from their investments in the stock markets.

"I couldn't make much money in the beginning due to my inexperience. But when I had just begun to reap the fruits of my years of perseverance, the crisis gripped the markets. Though I wouldn't say how many shares I had invested my money in, the loss has been phenomenal. I invested exorbitant sum in each of the scrips. To give you an example, I had 500 shares of Himachal Futuristic when each of its shares was priced at Rs 1,000. Today, the share's price has plummeted to below Rs120. This is just one scrip where I incurred a huge loss. I had blindly placed my money at 20 other counters," Chowdhury rues.

With no source of income left, Chowdhury has now started taking private insurance classes in a hope to make both ends meet by working as an insurance agent. Had it not been for his wife's teaching profession, Chowdhury says his family's plight would have been pitiable. He is, however, quick to add that he finds it exceedingly insulting to depend on his wife's income.

"Bhala app hi bataiye ki kaun pati apni patni ki kamayee khana pasand karega. Aakhir ham log thehray puraanay sanskar ke log. Magar bhagya nay ham logon ke saath aisa mazaaq kiya hai hi har tarah ki beizzati ko bardasht karna hi parega (You tell me as to who would like to depend on his wife's earning. After all we are the people of old values. But, we have to digest all sorts of indignation because the destiny has taken all of us for ride). Every time I go back home, the only question my wife asks is how much loss I have incurred in the market crisis. I have no choice but to soothe her that the prices of our shares have only gone down; they will bounce back soon. I don't want to tell her the truth and see repetition of what happened to Banka's wife," Chowdhury laments.

Likes of Chowdhury and Vinu Bhai lay the blame squarely at the footsteps of the government and the Securities and Exchange Board of India. They also blame the CSE's 'inept handling' of the entire crisis. Scathing in their criticism against these bodies, they allege that no action was taken against Dinesh Singhania when his payment cheques amounting to Rs 200 million bounced three months ago.

"Everybody knows that Singhania is Ketan Parekh's man in Calcutta. Yet, I fail to understand why no action was ever taken against him when he first defaulted on payment. Clearly, there is a big conspiracy behind this crisis involving many big players of CSE, Bombay Stock Exchange and even Sebi. Now even the government is not handling the issue properly. The arrest and raids would not bring back our money. The Harshad Mehta probe was a disaster and so would be Ketan Parekh investigation. See what happened in Harshad Mehta case; he wanted the government to give him seven days to repay. When he failed to do so the powers that be chose to put the man behind bars for a while. Can any one tell me how the move benefited the investors who suffered immense losses?" asks Pravin Mehta, a financier.

Same is the plight of Suvobrata Ganguly, a journalist turned advertising man. Ganguly says he had invested all his hard-earned money in the share market hoping to 'make some money' which would have enabled him to realise his dream of buying a decent house.

He purchased 400 shares of DSQ biotech after one of his friends (a broker) told him that the future was bright for biotech shares. His brokers advised him to buy DSQ scrips in bulk as their prices were bound to soar to Rs 2,000.

"I purchased 400 shares at Rs 850 each besides investing a considerable amount on other counters. Ironically, today the DSQ biotech shares are valued at Rs 30 and we don't see any sign of improvement in these shares," a dejected Ganguly said.

Ganguly's wife Rima, who runs a boutique, says she was never in favour of risking the life-long saving in unpredictable share market. According to her, Ganguly has gambled away all his savings against her wishes.

"He trusted this promoter Dinesh Dalmia -- a Ketan associate - more than me. Now, he regrets not having paid heed to my warnings. But what can be done now? We have lost all our savings. It was our dream to have our own house. We used to go through all business dailies every morning only to see how our shares were faring. But when we noticed the first slump, I told my husband with sarcasm that we had lost our parking area. And it didn't take long before we actually ended up in losing even more money-- something that could well have been the registration money for the new house," says Rima.

Though the loss in the capital market has not affected the couple's family life alarmingly, Ganguly complains that he has to face music from Rima every time she is around. Unruffled by his wife's criticism, Ganguly appears determined to try his luck again "She leaves no stone unturned in reminding me what a fool I am. But regardless of what we have to go through now, I am not going to quit investing in stock market. Let the market improve a bit, I will invest in big way again. After all, you can't make money faster than through the share markets," Ganguly remarks.

Experts say that if investors follow the right method of investing money in the capital market, the bourses are not always a bad place to invest. According to market analysts, the genesis of problem stems from greed and lack of self-discipline.

Vivek Mahajan, a leading share broker at the CSE, says that investors suffered largely because they started to speculate. Mahajan suggests that investors should instead follow some sound advice: one of which being not to invest money on the basis of media's analysis, 'which are always misleading'.

Such suggestions and advice, however, is of little use to those who have lost everything. It is much like locking the stable doors after the horse has bolted. Sage counsel after the event has little significance for those whose lives lay shattered as a result of the crisis in the capital markets.

Understandably, their prime concern now is to earn a decent livelihood. And restore a bit of their lost pride when it comes to their loved ones…

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