New Trend in Indian Corruption – PSU Bosses prefer Gold Bricks as Bribes
February 28, 2011Can South Korea use "Green Ships" to Topple China from No.1 Shipbuilder Position
February 28, 2011The Indian Stock Market Regulator SEBI has been seen doing nothing against blatant market manipulation and stock rigging scams.Mid cap and Small Cap Stocks are havens for rigging by promoters and stock brokers as SEBI seemingly does nothing.Even in the primary market,junk IPOs rule the roost with even the recent correction failing to see crap stocks making a debut (Sudar Garmets,Fineotex,Omkar etc.).To anyone with a modicum of common sense it is apparent that such low quality companies could not raise money without manipulating the markets.However SEBI in its infinite wisdom remains blind to this.Stock brokers like Ashika,Dangi continue to operate unimpeded despite being indicted for scamming.Even reputed stock brokers are involved in underhand and shady dealings.However SEBI does nothing indirectly encouraging fleecing of small and retail investors.Not that big investors like Goldman,GMO are immune to fly by night operators as well.
SEBI has fined Rs 36 crores ( aound $7.5 million) to Pancals who have been accused of scamming the IPOs in 2003-2006 by opening thousands of fraudulent demat accounts.Such small fines are hardly going to deter scamsters and will only embolden them further.A jail term would be more appropriate but white collar crimes in the stock market continue to be treated with kid gloves.Its no wonder that retail investors in India keep a very long distance from the manipulated market and prefer fixed deposits and gold to the detriment of growth in the country.
SEBI bars 6 entities from market; slaps Rs 36 cr penalty
Sectoral regulator SEBI today barred six market intermediaries from trading in securities for allegedly carrying out manipulations in various IPO issues and also slapped a penalty of Rs 36.09 crore.
“Roopalben N Panchal, Devangi Panchal, Dipak Jashvantlal Panchal, Hina Bhargav Panchal, Bhargav Ranchhodlal Panchal and Arjav Nareshbhai Panchal shall not buy, sell or deal in the securities…for three months,” the Securities and Exchange Board of India (SEBI) said in its final order.
In case the amount are not received by SEBI within 45 days, these persons would be restrained from buying, selling or dealing in securities market for a further period of nine years.
The case relates to IPOs of 18 companies during the period 2003-05. These IPOs include that of NTPC, IDFC, TCS, Suzlon, among others.
In 2009, SEBI had issued show cause notice against the six persons for opening thousands of demat accounts in fictitious names and even manipulated applications in the retail category of several IPOs.