Mar 26, 2002 11:27 PM
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(Updated Mar 26, 2002 11:28 PM)
SEBI, established under the SEBI Act of 1992, is supposed to regulate the business in stock exchanges and any other securities market. To carry out this noble duty a board of members of SEBI has been constituted. SEBI is supposed to carry out this regulation by way of registering and regulating the working of stock brokers, share transfer agents, bankers, trustees, registrars, underwriters, portfolio managers and other such intermediaries in the security market. But the moot point, to what extent the SEBI has actually succeeded in stopping the fraud committed with gullible investors. I myself am a sufferer of such fraud companies, which had supported their issues (IPO) with fancy advertisements, but after collecting the money, there is no trace of the companies. Thereafter a fine morning we come across a news item which states that the company in has declared itself insolvent. I agree, the share holder has to keep in mind such risks, but than anybody can come and fleece the innocent public and sped away with the money.
Secondly, let us talk about the Agro and Plantation companies. I am sure each one us is aware about the sudden appearance and equally quick disappearance of these companies from the horizon. SEBI did come into picture, asking these companies to furnish some details. But the net result, none of the investors got their money back and there is absolutely no trace of these companies.. Is this what the SEBI is made for ? One of the important duty assigned to SEBI is that it will prohibit fraudulent and unfair trade practices in security market, but alas the experience till now tells an entirely different story.