In 1992, Stock Markets witnessed a scam given shape by master mind Mr. Harshad Mehta and as result, thousands of investors lost there savings. The matter quaked parliament and thus, government formed a board “Securities and Exchange Board of India†(SEBI). All investors and marker players hailed the step on outlook that this regulator will safeguard there interests and keep check to protect there money from such scams further.
But, again in 2001 Mr. Ketan Parekh showed whole India about loopholes in working and market operating procedures formulated by SEBI. Again, retail investors lost there wealth and some big players enjoyed the gains.
SEBI’s vigil on stock market was again slapped in recent IPO scam where only select individuals took all cream generated by new listings.
Now, there’s one more instance where it seems likely that investors will lose there chunk of money. Millions of shareholders of Ispat Industries are concerned about there holding in the company. Ispat Industies had gone under reconstruction of share capital and to complete the process, the shares of the company were delisted from exchanges on 07th December 2005. It was assured the shares will be relisted in first week of January 2006 after re allotment of shares as approved in scheme of reconstruction.
But, the shares are still not listed and there is no formal announcement for these to be relisted very soon. Further, the new shares have not been allotted to the investors. Thus, likeliness for these to be relisted very soon is dim. The company officials are keeping there lips sealed and are not responding any letter or email. The PRO of the company has stopped functioning. Every investor is worried about the outcome and some are even planning to sit on Fast in front of SEBI’s office.
I wish to know about need for SEBI and why the board is lip locked even after such a long period. If SEBI is unaware of all this till date, it’s a big failure on there part and if they are keeping silent even after knowledge of this, that puts there integrity into circle as well.
Is there anyone who can assure the investors that the money put into stock market will be safeguarded against such Frauds?? How many more times will Indian Investor have to suffer in front of Sharks of market??????ikoni
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I understant that Ispat Industries belongs to one of the relatives of Mr Lakhsmi Mittal. I am surprised that people of such high repute and are doing such a thing to the poor investors. I think its high time now that SEBI and Company Law Board should get involved in this and investigate the matter on top priority.