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Sambhar Mafia - Cooked To Kill!

Friday, April 28, 2006

Can we trust them anymore?

SEBI has clamped down on 24 leading stockbrokers and banks for their involvement in the IPO scam. Two leading broking firms (Indiabulls and Karvy Stock Broking) are the worst affected as they can’t indulge in any form of market activities. Indiabulls and Karvy have been big success stories in recent times. People who have Demat accounts with Karvy have been asked to move their respective demat accounts to some other DP.

Karvy and Indiabulls have enjoyed meteoric rise over the last few years. Indiabulls was very much in the news recently when Lakshmi Mittal bought a stake in the company. Karvy has been dabbling in almost every sphere in the financial markets. Karvy also happens to be India’s biggest Registrar and Transfer (R&T) Agent. They were involved in most of the popular issues including Reliance Petro and Sun TV.

Irrespective of these IPO scams, retail investors continue to invest in the IPO’s hoping to ride the wave. As a result of this scam, the retail investor might not have got the allotment that he/she had hoped for. With the current craze for IPO’s, retail investors would still find it difficult to get an allotment.

7 Comments:

  • We the people never learn do we ? In the history of free capital markets in India this is not the first time such disciplinary action has been taken by the regulator against prominent firms for their skullduggery. Greed gets the better of people throwing caution to the winds.

    Such episodes are welcome from the standpoint of improving the quality of our markets. No player should be spared whatever their standing and clout for their errant ways.

    Call this another kind of shake-out!

    By Anonymous Anand Srini, at 9:25 PM  

  • Looking at it from a pure economic point of view, I can never win and win big unless I have better control over the market...if I don't have enough capital, it's gonna be tougher..so I don't have too many options other than to cheat right?

    By Blogger RefleXtion, at 6:28 PM  

  • Forget about these brokers and the banks. Can we trust SEBI to come out with an unambiguous order in the first place? The idiots release a vague order "banning India bulls" from trading in the market - giving anxious moments to retail investors who trade through them and then issue a "clarifcation" the next day after the market tanked 450 points !!. And this is not the first time either.

    By Blogger Prasanth, at 6:53 PM  

  • @Anand,
    I hope SEBI has been neutral in coming out with the penalties and bans. This is definitely a welcome move.

    @Reflextion,
    greed to make money out of the IPO's has resulted in large scale cheating.

    @Prasanth,
    The relaxation of the ban on India Bulls is quite vague and makes us cast aspersions on SEBI.

    By Blogger Kaps, at 11:14 PM  

  • will this affect the soaring sensex???

    BTW thanx for adding me.and sorry to have troubled u but i was a bit confused to find my name disappeared frm the blogroll.

    By Blogger Sheks, at 1:07 AM  

  • Did u see the swing during Saturday's trading session??? Another 100+ points !!!

    By Blogger Jayan, at 2:33 PM  

  • Sebi management is excellant for all.Thus, management is a process of aligning people and getting them committed to work for a common goal to the maximum social benefit - in search of excellence. Major functions of a manager are planning, organizing, leading and coordinating activities -- they put different emphasis and suggest different natures of activities in the following four major functions..

    The critical question in all managers' minds is how to be effective in their job. The answer to this fundamental question is found in the Bhagavad Gita, which repeatedly proclaims that "you must try to manage yourself." The reason is that unless a manager reaches a level of excellence and effectiveness, he or she will be merely a face in the crowd

    By Blogger bhattathiri, at 9:52 AM  

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