SEBI drops a bombshell on the bourses as it banned market leader Reliance Industries from the equity derivatives segment trading for one year apart from imposing a 1000 crore fine in a 10 yr-old case. Ten years is too long a period and I wonder how those who lost money a decade back in fraudulent trades would be identified and compensated. Our stock exchanges today are considered the best in the world but do we really have a mechanism platform that protects investor interest as many scams keep popping from time to time.
SEBI is a toothless body short of staff and I doubt if the order against Mukesh Ambani’s Reliance Industries would hold any water once the company challenges it in the higher courts. We need to have a check and balance system that protects investor interest at the time of frauds itself and not a system that takes a decade to punish the guilty.
(The views expressed by the author in the article are his/her own.)