DOCSLIB.ORG

Chapter 3 INFAMOUS CORPORATE FRAUDS in INDIA and ABROAD

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Chapter 3 INFAMOUS CORPORATE FRAUDS in INDIA and ABROAD Chapter 3 INFAMOUS CORPORATE FRAUDS IN INDIA AND ABROAD SYNOPSIS 1. Infamous Corporate Frauds in India 63 1.1 The Harshad Mehta Case (1992) 64 1.2 The C R Bhansali Case (1992-96) 66 1.3 The Virendra Rastogi Case (1995-96) 67 1.4 The Cobbler Case (1995) 68 1.5 The JVG Case (1997) 69 1.6 The Anubhav Plantation Case (1998) 72 1.7 The Abdul Karim Telgi Case (2000) 73 1.8 The UTI Case (2000) 75 1.9 The Dinesh Dalmia Case (2001) 76 1.10 The Ketan Parekh Case (2001) 77 1.11 The Sanjay Agarwal Home Trade Case (2001) 79 1.12 The IPO Demat Case (2005) 80 1.13 The Satyam Case (2009) 81 1.14 The Saradha Group-Chit Fund Case (2013) 84 1.15 The National Spot Exchange Limited (NSEL) Case (2013) 87 1.16 The Bank of Baroda Case (2015) 92 1.17 The PACL Case (2015) 93 2. Infamous Corporate Frauds Abroad 94 2.1 The Enron Case (1985) 94 2.2 The World Com Case (2002) 96 2.3 The Tyco Case (2005) 96 2.4 The Ponzi Scheme (Fort Lauderdale) Case (2009) 96 2.5 The Mark Todd Case (2002-2005) 97 2.6 The President of California Agribusiness Case (1999-2002) 98 2.7 The Maximum Dynamics Case (2000-2005) 98 2.8 The Corporate Funding Financial of America Case (2001) 99 2.9 The Edward Ehee Case (2001-2006) 100 2.10 The Fisher Sand & Gravel Co. Case (2009) 100 2.11 The Marian Gardens Tree Farm Case (2007) 101 2.12 The Quality Trucking Case (2000-2002) 101 2.13 The Philadelphia Academy Charter School Case (2009) 101 2.14 The Rajat Gupta Case (2012) 102 3. Features of Corporate Frauds in India 109 3.1 Fraud Perpetrators 109 3.2 Common types of Frauds 109 3.3 Lack of Action against Perpetrators 109 60 Corporate Frauds & their Regulation in India Chap. 3 3.4 Accountability 109 3.5 Unsufficient authorities 110 60 3.6 Insufficient Powers with fraud regulating agencies 110 3.7 Approach of the Adjudicating Agencies 110 3.8 Time Taken in Disposal of Cases 110 3.9 Weak anti-fraud measures 110 4. Summary 110 This chapter briefly describes the cases of corporate frauds which attracted public FraudsCorporate & attention through mass media because of the huge amount involved and the larger stakes of the public. Corporate frauds have shown an unprecedented increase in India in recent years and have posed serious questions before managers, regulators and professionals, on the effectiveness of corporate governance mechanism, regulatory mechanism, and the role of corporate and individual ethics. With the advancement of th commerce and technology, India, like many other countries, has been in the grip eir Regulation in India of corporate frauds. The enormous increase in corporate frauds in India in recent decades owes its origin to fast-developing economy and industrial growth. In the Western countries, particularly the UK and the USA, numerous studies in the finance, economics and law literature have been conducted with a view to ascertain incentives and monitoring deterrents of corporate frauds, and to identify the loopholes in the government control systems. However, in India, this important area of business appears to have escaped the attention of research scholars. No doctoral research work was available on the subject in the Social Science Documentation Centre of the Indian Council of Social Science Research (ICSR). The author has been awarded a doctoral degree on Corporate Frauds in Chap. 3 India- Nature, Consequences and Regulation. Fortunately, a periodical comprehensive survey had been conducted by a reputed consultancy firm KPMG. Moreover, an interesting and in-depth account of white-collar crimes is given by Girish Mishra and Braj Kumar Pandey1. Probably the first major corporate scam in Independent India was what is referred to as the Mundhra scam. Hari Das Mundhra, an industrialist and stock speculator, sold fictitious shares to the Life Insurance Corporation of India (LIC) and thereby defrauded the corporation by `1.25 crore in 1957. He was found guilty and was sentenced to imprisonment for 22 years. The then Union Finance Minister, T.T. Krishnamachary had to resign from his prestigious post in the face of scathing criticism within and outside Parliament. After the Haridas Mundra case of 1957, another major scam in the mid-sixties and early-seventies was associated with Jayanti Dharma Teja. He availed loans 1 Girish Mishra and Braj Kumar Pandey (1998), White-Collar Crimes: Current Affairs, Crime, Education, Literature, Media, Politics, Religion, Sociology (Delhi: Gyan Publishing House) Chap. 3 Infamous Corporate Frauds in India and Abroad 61 from banks and financial institutions and used this easy money to establish a shipping empire, in the name of Jayanti Shipping Company Limited. While he Chap. 3 had set up this company with a paid-up capital of a mere `200/- and took government loans amounting to `22 crore, Teja evaded government taxes and committed frauds by various ways. First, he, in collusion with his second wife, produced a forged resolution of the board of directors of the company authorising him to be the sole beneficiary of a letter of credit for $ 1,200,000. Secondly, by Infamous Corporate Frauds in India and Abroad using forged documents and making false statements, he withdrew $ 1,36,800 from his wife’s personal account. Thirdly, he misappropriated $ 87,600, paid by the Norwegian company for the charter of a ship. Lastly, he fraudulently retained a two percent commission on the amount paid by his company to Mitsubishi International Company, for building 11 vessels for the company. Teja was charged with offences under Sections 409 and 467 of the Indian Penal Code (IPC), which are punishable with imprisonment for life, together with offences under Sections 420, 477A, and 120B of the IPC for the embezzlement of about two crores of rupees in foreign exchange out of the funds belonging to Jayanti Shipping Company of which he was a permanent Chairman. The infamous corporate frauds reported since 1992 can be divided into three categories: (1) Corporate Scams, (2) Individual Scams and (3) Political and Government Scams. These are listed in Tables 3.1, 3.2 and 3.3 respectively: Table 3.1 Infamous Corporate Scams in India S. Year Name of the Scam Amount Involved No. (` Crore) Approx. 61 1. 1992 Harshad Mehta Securities scam 5,000 2. 1995 Preferential Allotment scam 5,000 3. 1995 Cobbler scam 2,880 4. 1995 Preferential Allotment scam 5,000 5. 1996 Virender Rastogi scam 43 6. 1996 CR Bhansali scam 1,200 7. 1997 JVG scam 1,000 8. 2001 Dinesh Dalmia Stock scam 595 9. 2001 Ketan Parekh Securities scam 1,250 10. 2005 IPO-Demat scam 146 62 Corporate Frauds & their Regulation in India Chap. 3 S. Year Name of the Scam Amount Involved 62 No. (` Crore) Approx. 11. 2009 Satyam scam 10,000 12. 2013 Saradha scam 4,000 13. 2013 Reebok Shoes Company scam 8,700 Corporate FraudsCorporate & 14. 2013 National Spot Exchange Limited 5,600 scam 15. 2015 Bank of Baroda scam 6,172 16. 2015 PACL scam 47,000 th Table 3.2 eir Regulation in India Infamous Individuals Scam S. Year Name of the Scam Amount Involved No. (` Crore) 1. 1994 Sugar Import scam 650 2. 2000 Telgi Stamp Paper scam 172 3. 2001 Sanjay Agarwal Home Trade scam 600 4. 2008 Pune Billionaire Hassan Ali Khan tax 50,000 default sacm Chap. 3 5. 2008 Illegal Money in Swiss Banks scam 71,00,000 6. 2011 Hasan Ali Khan scam 50,000 Table 3.3 Infamous Political/Government Scams S. Year Name of the Scam Amount Involved No. (` Crore) 1. 1995 Meghalaya Forest scam 300 2. 1996 Fertiliser Import scam 1,300 3. 1996 Urea scam 133 4. 1996 Bihar Government Fodder scam 950 Chap. 3 Infamous Corporate Frauds in India and Abroad 63 S. Year Name of the Scam Amount Involved Chap. 3 No. (` Crore) 5. 1997 Sukh Ram Telecom scam 1,500 6. 1997 SNC Lavalin Power Project scam 374 7. 1997 Bihar Land scandal 400 Infamous Corporate Frauds in India and Abroad 8. 1998 Teak Plantation scam 8,000 9. 2000 Unit Trust of India scam 4,800 10. 2005 Bihar Flood Relief scam 17 11. 2005 Scorpene Submarine scam 18,978 12. 2006 Punjab’s City Centre Project scam 1,500 13. 2006 Taj Corridor scam 175 14. 2008 Army Ration Pilferage scam 5,000 15. 2008 State Bank of Saurashtra scam 95 16. 2009 Jharkhand Medical Equipments scam 130 17. 2009 Rice Export scam 2,500 18. 2009 Orissa Mine scam 7,000 19. 2009 Madhu Koda Mining scam 4,000 20. 2010 2-G Spectrum scam 60,000 21. 2010 Adarsh Housing Society scam 8.5 63 22. 2010 Common Wealth Games scam 70,000 23. 2010 UP Food Grains scam 2,00,000 24. 2010 ISRO-Devas S Band scam 800 25. 2010 IPL Cricket scam 5,500 26. 2014 Wyapam scam ---- 1. Infamous Corporate Frauds in India The major cases of corporate frauds occurred as shown in Table 3.4, which were reported during the period from 1992 to 2015 briefly described below, so as to bring out their features and modus operandi. 64 Corporate Frauds & their Regulation in India Chap. 3 Table 3.4 64 Major Scams of Corporate Sector S. Year Name of the Scam Amount Involved No. (` Crore) 1. 1992 Harshad Mehta scam 4,000 Corporate FraudsCorporate & 2. 1992-96 C R Bhansali scam 12,000 3. 1995 Cobbler scam 2,880 4.
Load more

Recommended publications
  • Role of Corporate Goverance and Sebi : a Critical Analysis
    Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930 ROLE OF CORPORATE GOVERANCE AND SEBI : A CRITICAL ANALYSIS Dr. Neetu Prakash Assistant Professor, Guru Nanak Khalsa College for Women, Model Town, Ludhiana ABSTRACT Corporate frauds or financial crimes or financial frauds can be classified as white-collar crimes, which represent the illegal acts that are characterized by deceit, concealment or violation of trust. The fraudulent exercises practiced by Enron, WorldCom and Martha Steward shook the world. Of these scandals, the Enron accounting scandal was the most infamous one. There were similar allegations against the WorldCom Company, whose CEO Bernard Ebbers hid an expenditure of $11 bn; later this led the company to bankruptcy. Frauds have occurred in almost every country in the world, in almost every sector, including banking, insurance, telecom, automobile industry, health, and the list is endless. The growing focus on cross-border expansion, high levels of growth with internal processes not keeping pace and large number of new employees joining the organization are making most companies vulnerable to greater fraud risk in recent times. The IT hackers and fraudsters can pose a significant threat of a financial crime. Cyber-crimes, economic crimes, ethical crimes, falsification of accounts by showing inflated profits, breach of fiduciary duty, breach of confidential information, non- disclosure of material facts etc. are causing enormous harm to the rights and interests or the society. Every such corporate fraud is a heinous crime against humanity, as it adversely affects and ruins the fortunes of large segments of innocent people. There are several adverse consequences of financial crimes.
    [Show full text]
  • International Journal of Advanced Multidisciplinary Research (IJAMR) ISSN: 2393-8870 Review Article a Study on Marketing of Services by Axis Bank
    International Journal of Advanced Multidisciplinary Research 2(2): (2015): 47–52 International Journal of Advanced Multidisciplinary Research (IJAMR) ISSN: 2393-8870 www.ijarm.com Review Article A Study on marketing of services by Axis bank Dr. M. Thirumagal Vijaya Head , PSG College of Arts and Science , Coimbatore-641014. Corresponding Author : [email protected] Abstract A bank is a financial intermediary that accepts deposits and channels those deposits into lending Keywords activities, either directly by loaning or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most financial intermediary, countries. Most nations have institutionalized system under which banks hold liquid assets equal to institutionalized system , only a portion of their current liabilities. The Banking sector in India has always been one of the most Banking sector index, preferred destinations for employment. In this decade, this sector has emerged as a sunrise sector in NBFCs, the Indian economy. Banking sector index has grown at a compounded annual rate of over 51 per cent Management Information since the year 2001.The Banking Industry is recruiting in a big way. In the next five years , banks will Systems have to recruit almost 7.5 lakh people. Now, banks have diversified their activities and getting into new products and services that include opportunities in credit cards, consumer finance, wealth management, life and general insurance, investment banking, mutual funds, pension fund regulation, stock broking services, custodian services and private equity etc. Further, most of the leading Indian banks are going global, setting up offices in foreign countries themselves or through their subsidiaries.
    [Show full text]
  • Resolution of Corporate Disputes, Non-Compliances & Remedies
    STUDY MATERIAL PROFESSIONAL PROGRAMME RESOLUTION OF CORPORATE DISPUTES, NON-COMPLIANCES & REMEDIES MODULE 2 PAPER 6 i © THE INSTITUTE OF COMPANY SECRETARIES OF INDIA Disclaimer : Although due care and diligence have been taken in preparation of this Study Material, the Institute shall not be responsible for any loss or damage, resulting from any action taken on the basis of the contents of this Study Material. Anyone wishing to act on the basis of the material contained herein should do so after cross checking with the original source. TIMING OF HEADQUARTERS Monday to Friday Office Timings – 9.00 A.M. to 5.30 P.M. Public Dealing Timings Without financial transactions – 9.30 A.M. to 5.00 P.M. With financial transactions – 9.30 A.M. to 4.00 P.M. Phones 011-45341000 Fax 011-24626727 Website www.icsi.edu E-mail [email protected] Laser Typesetting by AArushi Graphics, Prashant Vihar, New Delhi, and Printed at SAP Printers, Mumbai/February 2020 ii PROFESSIONAL PROGRAMME RESOLUTION OF CORPORATE DISPUTES, NON-COMPLIANCES & REMEDIES The term Corporate disputes includes the disputes relating to Antitrust, Mala-Fidei, Breach of Contract, Breach of Fiduciary Duty, Business Torts, Class Actions, Debtor/Creditor, Employment and Labour, Fraud and Misrepresentation, Insurance Coverage, Intellectual Property and Patent Infringement, Board Member Disputes, Partnership Disputes, Privacy, Cyber security and Data Breach, Product Liability, Real Estate, Land Use and Environmental Litigation, Restrictive agreement, Securities Litigation, Shareholder Disputes and Derivative Actions, Tax Disputes, Trade Secret and Unfair Competition. These commercial litigations are different from other civil litigations by virtue of the involvement of businesses rather than just individuals.
    [Show full text]
  • 15 Chapter-2 Selection of Sample Banks and Reasons
    CHAPTER-2 SELECTION OF SAMPLE BANKS AND REASONS BEHIND MERGER As stated earlier, the selected period of research is 15 years, which was started in 2000-01 and ending on 2014-15. As mentioned (in Table 2.1), 15 M&As (mergers and acquisitions) had taken place in our selected period either in the form of voluntary/natural market driven merger or compulsory/forced merger. Out of 15 M&As, 9 M&As were on voluntary/natural market driven basis and 6 M&As were on compulsory/forced merger basis. The role of RBI (Reserve Bank of India) is very important for compulsory/forced merger because under Section 45 of the Banking Regulations Acts allow RBI to approve compulsory/forced merger to protect the interest of public, depositors, employees & management and the banking industry as a whole. In this regard, the commencement date of M&As will be the date indicated in the notifications issued by RBI in consultation with the Government. In case of voluntary/natural market driven M&A, RBI does have mandatory power to approve merger of banks. The following table-2.1 presents a snapshot of the 15 M&As, which were taken place during our study period. 15 Table 2.1 Merger and Acquisition (M&A) during the period: FY 2000-01 to 2014-2015 DATE OF S.NO. TARGET BANK ACQUIRER BANK MERGER 1 Bank of Madura Ltd. ICICI Bank Ltd. 10-Mar-01 2 ICICI Ltd ICICI Bank Ltd 3-May-02 3 Benares State Bank Ltd Bank of Baroda 20-Jun-02 4 Nedungadi Bank Ltd.
    [Show full text]
  • Fraudulent Financial Practices and Investor Protection in the Indian
    FINAL REPORT OF UGC SPONSORED MAJOR RESEARCH PROJECT ON FRAUDULENT FINANCIAL PRACTICES AND INVESTOR PROTECTION IN THE INDIAN CAPITAL MARKET – ROLE OF SEBI F. No. 5-46/2014 (HRP) Dated 10th October, 2015 MRP-MAJOR-COMM-2013-8437 (GENERAL) Submitted to the UNIVERSITY GRANTS COMMISSION New Delhi By Dr. GADDAM NARESH REDDY PRINCIPAL INVESTIGATOR DEPARTMENT OF COMMERCE UNIVERSITY COLLEGE OF COMMERCE & BUSINESS MANAGEMENT OSMANIA UNIVERSITY HYDERABAD 2018 PREFACE The Indian securities markets have come a long way in the last three decades in terms of both quantitative as well as qualitative transformations. They have also witnessed quite a few ups and downs including a global financial crisis. The relationship between the rate of economic growth and growth in the securities market is two-fold and symbiotic. Strong economic growth helps securities market to develop and developed securities market mobilizes capital to fuel economic growth. In this ever changing global financial landscape, financial markets too are evolving, growing and getting more complex. To effectively regulate these markets, the regulators and policymakers need to be proactive, keep themselves updated and upgraded. Over a period of time, SEBI has strengthened both its regulatory purview and internal capacity to ensure that the interests of the investors are well protected. Efforts are under way to deepen the corporate bonds market, widen the penetration of mutual funds across the country and strengthening the commodities market. The efforts of the government and of policymakers, the Indian financial market will ascend to newer heights. Corporate sectors, stock markets, and the profession of accounting are increasingly gaining importance which calls for a more efficient and transparent working of corporate sectors.
    [Show full text]
  • Report on Research Project of Financial Scams in India
    REPORT ON RESEARCH PROJECT OF FINANCIAL SCAMS IN INDIA Submitted in partial fulfilment of the requirement of the Masters in Business Administration Programme Offered by Jain University during the year 2013-14 BY MOHAMMED MAAZ 3rd Semester MBA UNDER THE GUIDANCE OF PROF.SHRUTI AGARWAL # 319, 17th Cross, 25th Main, JP Nagar 6th Phase Bangalore – 560 078 Phone : 080-43430400, Fax : 080-26532730 E-mail : [email protected], Website : www.bschool.cms.ac.in Declaration I, hereby declare that this Lab Hours / Project (Research Project) on FINANCIAL SCAMS IN INDIA is prepared by me during the academic year 2014-15 under the guidance of prof. Shruti Agarwal. I also declare that this project which is the partial fulfillment of the requirement for MBA programme Offered by Jain University, it is the result of my own efforts with the help of experts. Name : MOHAMMED MAAZ Sem : 3rd Sec : “C” Reg.No : 13MBA63049 Date : Place : Signature ACKNOWLEDGEMENT It gives me immense pleasure in presenting the project report on Financial Scams in India Firstly, I take the opportunity in thanking almightily and my parents without whose continuous blessings, I would not have been able to complete this project. I would like to thank my project guide Prof. Shruti Agarwal for her great help, valuable opinions, advice and suggestions in fulfillment of this project. I am also grateful to Prof. Durga Praveena for encouraging me to select the project topic. I am thankful to our college for all the possible assistance and support, by making available the required books and the internet room which have proved useful to me in successfully completing my project.
    [Show full text]
  • Infrastructure Development Finance Company Limited (“Idfc”, the “Company” Or the “Issuer”) and an Offer for Sale of 283,600,000 Equity Shares of Rs
    C Y K RED HERRING PROSPECTUS Please read Section 60B of the Companies Act, 1956 Dated June 25, 2005 100% Book Built Issue (Incorporated on January 13, 1997 under the Companies Act, 1956 as a public limited company) Registered Office : ITC Centre, 3rd floor, 760, Anna Salai, Chennai - 600 002, India. Tel: 91 44 2855 9448; Fax 91 44 2854 7597 Corporate Office: Ramon House, H.T. Parekh Marg, 169, Backbay Reclamation, Mumbai - 400 020, India Tel: 91 22 5633 9100; Fax 91 22 2202 9711 E-mail: [email protected]; Website: www.idfc.com Contact Person : Mr. Mahendra N. Shah; Tel: 91 22 5633 9118 PUBLIC ISSUE OF 403,600,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. [] PER EQUITY SHARE AGGREGATING RS. [] MILLION, COMPRISING A FRESH ISSUE OF 120,000,000 EQUITY SHARES OF RS. 10 EACH BY INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED (“IDFC”, THE “COMPANY” OR THE “ISSUER”) AND AN OFFER FOR SALE OF 283,600,000 EQUITY SHARES OF RS. 10 EACH BY THE SELLING SHAREHOLDERS. THE FRESH ISSUE AND THE OFFER FOR SALE ARE JOINTLY REFERRED TO HEREIN AS THE ISSUE. THE ISSUE WILL CONSTITUTE 35.96% OF THE FULLY DILUTED POST-ISSUE CAPITAL OF OUR COMPANY. PRICE BAND: Rs. 29 TO Rs. 34 PER EQUITY SHARE OF FACE VALUE Rs. 10 ISSUE PRICE IS 2.9 TIMES THE FACE VALUE AT THE LOWER END OF THE PRICE BAND AND 3.4 TIMES THE FACE VALUE AT THE HIGHER END OF THE PRICE BAND In case of revision in the Price Band, the Bidding/Issue Period will be extended for three additional days after revision of the Price Band subject to the Bidding/ Issue Period not exceeding 10 days.
    [Show full text]
  • Before the Adjudicating Officer
    BEFORE THE ADJUDICATING OFFICER SECURITIES AND EXCHANGE BOARD OF INDIA [ADJUDICATION ORDER NO. - SRP/RK/AO: 254/2012] UNDER SECTION 15 I OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH RULE 5 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995 In respect of J H P Securities Private Limited Member Broker of BSE SEBI Registration No. – INB 010990036 (PAN – AAACJ2847H) In the matter of Gemstone Investments Limited BACKGROUND IN BRIEF 1. The Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) conducted investigations into the affairs, trading and dealings in the shares of Gemstone Investments Limited (hereinafter referred to as ‘Company/GIL’) for the period from August 28, 2006 to August 21, 2008 on the basis of a report received from the Bombay Stock Exchange Ltd. (hereinafter referred to as ‘BSE’) regarding substantial reduction in the shareholding of the promoters of the Company and unusual spurt in price and traded volume of the scrip. 2. On investigation, it was, inter alia, observed by SEBI that the stock broker JHP Securities Private Limited (hereinafter referred to as the ‘Noticee’) had the highest purchase and sale concentration in the scrip of GIL during the period of investigation. The major clients of the Noticee were (i) Prem Parekh, (ii) Mala Hemanth Seth, (iii) Kishore Chauhan, (iv) Hemanth Seth, (v) Bhavesh P Pabari and (vi) Ankit Sanchaniya. The investigations, prima facie, revealed that these clients of the Noticee were related/ connected with each other and were part of a larger group of entities which were connected/related with each other and with the director of GIL.
    [Show full text]
  • Financial Liberalization and the Macroeconomics of Poverty
    Financial Liberalization in India: An Assessment of its Nature and Outcomes C.P. Chandrasekhar and Parthapratim Pal Financial sector reform, involving substantial liberalisation of regulatory control over markets, institutions and instruments, is at the centre of the engineered transition that developing countries have been through over the last three decades. It is now widely acknowledged that the process of financial reform has had economy-wide implications, not just for the relations between financial institutions and their clients and for the nature of operations of financial institutions, but for the manoeuvrability of the state when it comes to macroeconomic policy. There are three broad objectives that the process of financial liberalization serves: (i) it opens the country to new forms and larger volumes of international financial flows, in order to attract a part of the substantially increased flows of financial capital to the so- called “emerging markets” since the late-1970s; (ii) to facilitate these inflows it liberalizes to differing degree the terms governing outflows of foreign exchange in the form of current account investment income payments and in the form of capital account transfers for permitted transactions; and (iii) it transforms the structure of the financial sector and the nature and operations of financial firms in a manner that makes the financial system resemble that in countries like the US and the UK. It has been argued for sometime now that the first two of these, involving liberalization of controls on inflows and outflows of capital respectively, have resulted in an increase in financial fragility in developing countries, making them prone to periodic financial and currency crises.1 Analyses of individual instances of crises have tended to conclude that the nature and timing of these crises had much to do with the shift to a more liberal and open financial regime.
    [Show full text]
  • FII) Investment in Indian Equity Market
    A Study of Foreign Institutional Investors' (FII) Investment in Indian Equity market A Thesis submitted to Gujarat Technological University for the Award of Doctor of Philosophy in Management by Joshi Mrunal Chetanbhai [Enrollment No. 139997292006] under supervision of Dr. Jayesh N. Desai GUJARAT TECHNOLOGICAL UNIVERSITY AHMEDABAD December – 2019 © Joshi Mrunal Chetanbhai DECLARATION I declare that the thesis entitled “A Study of Foreign Institutional Investors' (FII) Investment in Indian Equity market” submitted by me for the degree of Doctor of Philosophy is the record of research work carried out by me during the period from June 2014 to March 2019 under the supervision of Dr. Jayesh N. Desai and this has not formed the basis for the award of any degree, diploma, associateship, fellowship, titles in this or any other University or other institution of higher learning. I further declare that the material obtained from other sources has been duly acknowledged in the thesis. I shall be solely responsible for any plagiarism or other irregularities, if noticed in the thesis. Signature of the Research Scholar : ………………………… Date:….……………… Name of Research Scholar: Joshi Mrunal Chetanbhai Place : ………………………………… (i) CERTIFICATE I certify that the work incorporated in the thesis “A Study of Foreign Institutional Investors' (FII) Investment in Indian Equity market” submitted by Shri Joshi Mrunal Chetanbhai was carried out by the candidate under my supervision/guidance. To the best of my knowledge: (i) the candidate has not submitted the same research work to any other institution for any degree/diploma, Associateship, Fellowship or other similar titles (ii) the thesis submitted is a record of original research work done by the Research Scholar during the period of study under my supervision, and (iii) the thesis represents independent research work on the part of the Research Scholar.
    [Show full text]
  • An Analysis of Major Corporate Scams in India with Special Reference to Securities Market
    An Open Access Journal from The Law Brigade Publishers 622 AN ANALYSIS OF MAJOR CORPORATE SCAMS IN INDIA WITH SPECIAL REFERENCE TO SECURITIES MARKET Written by Mayank Shrivastava Research Scholar, Amity University Raipur Chhattisgarh, India ABSTRACT Frauds have been rampant in the business world, and India has had its share of corporate frauds. The incidents of corporate frauds have significantly impacted the stakeholder’s confidence. The scope of a fraud is no limited to monetary figure. It, in most of the instances has made the organization part with its reputation, goodwill and what not. Many large corporations maintain consistently good record of ethical practices and compliance with the law that contrast sharply with the behavior of other corporations. The reasons for these differences present several important issues. Corporate frauds and abuse of position have been seen in various cases relating to scams, malpractices, insider trading price rigging etc. like Harshad Mehta Scam, Ketan Parekh Scam, Satyam Scam, Sardha Chit Fund Scam, Sahara Scam, PACL, IPO Scam etc. The wrongdoers in case of corporate scams are not like those other criminals, rather they are in most of the cases such sharp minded people that they know how to find the lacunae even better than even the makers of the Law. Finding the loopholes in the existing procedure is where a corporate scam starts. The brilliant a mind, severe the corporate crime, these perpetrators of corporate scams are more brilliant, soft spoken, smart and intelligent. They are well versed with the law, in the sense that they have not only read and understood the parent legislation and regulations but they have also interpreted in the manner that they know how to make use of the law for their own sake.
    [Show full text]
  • A Project Report on 6+$5(.+$1 6(&85,7,(6 397
    A PROJECT REPORT ON ´Sales of Demat Cum Online Trading Account, competitor analysis and Marketing Strategies of Sharekhan.µ (FOR THE PARTIAL FULFILLMENT OF MASTERS IN BUSINESS ADMINISTRATION AND FULL TIME POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT) $W 6+$5(.+$16(&85,7,(6397/7' (Area Of Summer Training- Marketing/sales) TABLE OF CONTENTS Acknowledgement Executive summary CHAPTER 1. INTRODUCTION 1.1 Introduction to the Topic 1.2 Objective of the Study 1.3 Job description CHAPTER 2. COMPANY PROFILE 2.1 About the Company 2.2 Company Profile 2.3 Share khan Business LITERATURE REVIEW Introduction of the product 2.4 Types of product and features 2.5 Process of DMAT A/C 2.6 Documentation 2.7 Product charges 2.8 Sharekhan services 2.9 Closure of an Account CAPTER 3 REARSEARCH METHODOLOGY 3.1 Data collection Secondary data Primary data 3.2 Tools and techniques 3.3 Limitations CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN 4.1 Marketing Strategies 4.2 Unique objectives of the company 4.3 Comparative analysis 4.4 SWOT Analysis CHAPTER 5. OBSERVATIONS AND ANALYSIS 5.1 Data Analysis 5.2 Interpretation CHAPTER 6. FINDINGS AND RECOMMENDATION 6.1Findings 6.2 Recommendation. CHAPTER 7. CONCLUSION CHAPTER 8. RESULTS CHAPTER 9. BIBLIOGRAPHY ACKNOWLEDGEMENT A project is never the work of an individual. It is moreover a combination of ideas, suggestions, review, contribution and work involving many folks. It cannot be completed without guidelines. My sincere regards to my Project guide Mr. Ramesh Tanwar for his invaluable guidance and encouragement through out this project. Last but not the least my sincere thanks to all the faculty members of ³AIMS´ and my Sr, Sales executive and Team members for providing their help and advice whenever it was needed.
    [Show full text]