Veteran investor Mark Mobius says regulators should 'definitely' not take any action against Reddit traders

• Renowned emerging-markets investor Mark Mobius isn't in favor of regulatory action against day traders.
• The regulator should only ensure that trading is done efficiently and fairly, he told Bloomberg.
• Mobius Capital Partners has made no changes to its portfolio based on retail flows.

After the US Securities and Exchange Commission said it would monitor ongoing volatility in the options and equities market, legendary investor Mark Mobius has put it out there that he disapproves of regulatory action against retail traders.

"There definitely should not be any regulatory action," Mobius told Bloomberg in an email. "The regulator should only ensure that trading is done efficiently and fairly with all buyers and sellers (regardless of their objectives) treated equally."

The long-time investor has authored several books on investing and has spent more than 40 years working in emerging markets.

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A surge in highly volatile stocks like GameStop, AMC, BlackBerry, and Bed Bath & Beyond due to a Reddit-fueled short-squeeze raised concerns about the influence of social media forums on the stock market. GameStop surged 140% on Friday after Robinhood loosened an earlier buying ban on some stocks.

"We have not made any changes in our portfolio" based on retail flows, Mobius told Bloomberg.

Democrats Elizabeth Warren and Alexandria-Ocasio Cortex slammed hedge funds and investors that criticized the day traders that powered up these stocks, calling for stricter regulations. Both said established Wall Streeters treated the stock market like a "casino" themselves.

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