Paper chase: India cracks down on alleged bond fraudsters

Article Abstract:

The Indian government is seriously pursuing the prosecution of all involved in the securities trading scandal that could cause some banks nearly 31 billion rupees in losses. State Bank of India Deputy managing director C.L. Khemani and broker Harshad Mehta were placed under arrest without bail for fraud and corruption. To avoid delays in the Indian court system, the government appointed a special court under a Supreme Court judge to try the case and a custodian to seize the defendants' fraudulently acquired assets. Hopes were raised that the scandal could prompt financial market reforms.

Cases, Ethical aspects, Insider trading in securities, Insider trading (Securities), Bond brokers, Brokers, Bond

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Paper tiger: India's securities watchdog lacks independence

Article Abstract:

The statutory status recently given to the Securities and Exchange Board of India (SEBI) is being questioned because of the SEBI's alleged lack of independence from the Finance Ministry. The ministry names the SEBI's board of directors and may terminate their appointment at the Ministry's discretion. New rules promulgated by the SEBI must be sanctioned by the ministry, as well as the indictment of erring companies. Indian politicians oppose the SEBI's independence because their control over corporations and business leaders will be reduced.

Laws, regulations and rules, Securities industry, Securities law

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Caught in a storm: Indian securities scam snares economic reformer

Article Abstract:

Progressive economic reformist Commerce minister P. Chidambaram, resigned his position as a result of the widescale securities fraud perpetrated in India. Chidambaram's ethical resignation stemmed from family investment in a company implicated for using forged securities. The economically liberal secretary turned out to be affected by the fraud through his wife's investment in Fairgrowth Financial Services, one of several companies implicated in a scandal concerning fraudulent securities.

Appointments, resignations and dismissals, Securities fraud, Chidambaram, P.

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