Harshad Mehta Scam Triggered the Formation of SEBI

There are many analysts who compare the present status in the Indian commodities markets to the Wild West scenario that prevailed in the Indian stock markets after the first flush of liberalisation in 1991. While the Harshad Mehta scam triggered the formation of SEBI in 1992 to more effectively regulate the markets, It took many more scams and alleged scamsters like C. R. Bhansali and Ketan Parekh and more than a decade for SEBI to reach a stage where it could even claim that it is actually an effective regulator. Even now, FMC faces the dilemma faced by SEBI in the early 1990s – it simply doesn’t have the wherewithal to prevent rigging, speculation and market fixing. These factors have led many traders to raise uncomfortable questions:

• A whopping 98% of traders in commodities lost money... Why? Why doesn’t the government close down defaulting exchanges or manage them better?
  
• Why don’t all exchanges increase margins or stop trading? Why are settlement of contracts still not transparent?
  
• Why are market regulators unaware of trade intricacies?
  
  
  For Complete IIPM - Article, Click on IIPM-Editorial Link
  
  
  Source:- IIPM-Business and Economy,
  
  
  
  Initiative:- Prof. Arindam Chaudhuri
  
  
  

Rashmi Bansal Publisher Of JAMMAG Magazine Caught Red-Handed, for details click on the following links:-

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)