Is Indian Stock market safe?

Get inside information from the president and you will probably lose half your money. If you get it from the chairman of the board, you will lose all of your money. Jim Rogers

There have been many news which have made headlines in recent weeks, Just 451 clients account for 50% of NSE daily turnover and in the derivatives segment only 106 clients accounting for 50% of the average daily turnover. This was stated by the Minister of State for Finance, Mr Namo Narain Meena, in a written reply to question posed by Mr Sukhdev Singh Dhindsa in the Rajya Sabha. Now NSE has come to answer and the link is also provided.
Indian market is very safe but risk is due to wrong decisions taken by investors or traders for which regulators or stock exchanges can’t be blamed. Today traders and investors have turned so greedy that leveraged positions have increased and penny stocks and lesser-known-fundamental stocks have given multifold returns.

http://www.thehindubusinessline.com/2010/08/16/stories/2010081650980400.htm As many as 451 client identities accounted for about 50 per cent of the average daily turnover in the cash equity segment of the National Stock Exchange in the first quarter this fiscal.

http://www.business-standard.com/india/news/nse-questions-low-investor-base-claim/406129/ The National Stock Exchange (NSE) seems to be miffed by recent reports suggesting that India has a low equity base and only a few traders account for the bulk of the volume 

http://economictimes.indiatimes.com/markets/analysis/Brokers-abuse-margin-fund-rules-risk-crash/articleshow/6429767.cms  The most popular among retail broking houses is the so-called ‘five-day product’ that lets an investor buy stocks worth 100 with just 20, which in a strict sense regulations prohibit. The difference is paid for by the broker at the time of delivery. The regulations permit such a transaction, provided it is a one-off affair. But the cycle goes on week after week, reviving memories of the weekly settlement system which used to stall often and which had to be banned for its serious flaws, why are we witnessing a parallel settlement system here? Its just because brokers' clients are so greedy that they do avail of such systems. Whenever you buy there is always "Caveat Emptor", i.e. BUYERS BEWARE!

SEBI has mandated that all media houses disclose their investments in companies that are the subject of stories, editorials and other forms of reportage, including television http://www.thehindubusinessline.com/2010/08/28/stories/2010082853300100.htm  “Some media houses have so many investee companies that every second story from them would have to carry disclaimers,” remarked Mr Jagannadham Thunuguntla, Head of Equity, SMC Capital.

The greater fool theory is the belief held by one who makes a questionable investment, with the assumption that they will be able to sell it later to "a bigger fool"; in other words, buying something not because you believe that it is worth the price, but rather because you believe that you will be able to sell it to someone else for an even higher price.

http://prabhakar-views.blogspot.com/2010/02/be-informed-investor-in-informed-world.html  Be an informed investor in an informed world

http://prabhakar-views.blogspot.com/2010/02/caution-to-investors-from-sebi.html The following caution is issued by SEBI in the interest of investors. Be extra cautious while using information available from media sources such as Websites/ Blogs/ Newspaper Advertisements/ SMS’s Emails/rumours/ advice through television or print media for information and tips for intra-day, short term or long term investing.