Chapter 26: Investor Protection | 323 |
SHAREHOLDER PROTECTION IN INDIA
Though the above detailed analysis of shareholders’ rights as stressed
by the Companies Act, other statues and various committees give any
investor or the general readers the impression that there are enough
provisions in the laws of the land, there has hardly been any convic-
tion under them all these years. Since 1991, the liberalization of the
Indian economy seems to have opened the fl oodgates of scams and
provided vast opportunities to fl y-by-night operators to destroy the
shareholder values. As the result of some scams such as the UTI’,
non-banking fi nance companies’, plantations’ and vanishing compa-
nies’, millions of small investors lost their savings and investments. ...