SEBI chief still hanging in there, in spite of the pithy comments from Justice Verma about the way the SEBI Board is being used to scuttle investigations in to the IPO scandal, where NSDL played and key role. The then head of NSDL is now the SEBI Chief.
Similarly, we have a report about half a dozen companies that have violated the FCCB guidelines regarding end use of money. The RBI permits the proceeds of FCCB to be used in certain specific ways only. Right or wrong or downright stupid, this is the law of the land. Violation does not seem to matter.
RBI will ‘fine’ the company and leave it at that. Shareholders suffer.
What about the directors of the company? Nothing. The law should be changed to make sure that all the directors of such a company are barred from ever being a company director again, in addition to them being personally made to cough up the fine or face imprisonment in lieu.
The legal system in India abets the crook. So, if you think something is not legally permissible, have no worries. The government has a tariff for doing wrong. It is called a ‘fine’. And we have plea bargaining. All it involves is some payment and some grease..

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