The security and Exchange Board of India(Sebi) wants to sugarcoat the big bad world of the stock markets for retail investor. The regulator is Planning to introduce and early warnings system to flag risks in stocks that are overvalues, showing irregular trading patterns, or have unsustainable business models, It’s true the markets are heady and investors need to be warned. Indian markets have gained sharply in 2017 despite sluggish economic growth, poor investment demand, elusive corporate earnings reduce and the twin disturption of the high value not ea ban and introduction the Goods and Services Tax The regulator seems worry that investor will get burnt like in the aftermath of the 2008 global financial crisis. Then, retail investors fled the market. It has taken them almost a dex to hesitantly return, and mostly through mutual funds. While the objective of the idea- to protect unsophisticated investors is laudable, a grading system for stocks might not the best way to go about it. Such a system seems fraught with practice difficulties. Take, for instance a cause like the erstwhile Satyam compute Services. In its heyday, it was a top tier soft stock. But is such stock was highly graded and then the fraud disclosed, how would Sebi answer investor questions? Remember, that sebi has such gradings for IPOs but is made them optional in 2014 after it was found that they had not served the intended purpose. The regulator’s previous attempt to mollycoddle investors have misfired. There are plenty of ways in which Sebi can protect investors. For example, it can insist of better disclosure form listed firms. In India, despite steps taken by the regulator, disclose manner that is investor unfriendly. More importantly, Sebi should spruce up its investigation and enforcement teams so that fraud and stock manipulation are detected and penalised on time. That will be the right way to make markets a safer rather than a stock grading system. When Narendra Modi became the most success PM.