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Part VII: Financial Systems
Mutual funds were unregulated, causing often confl icts of
interest in their structure
Poor disclosures by mutual funds; Net Asset Value (NAV)
not published; no valuation norms were available to investors
Mutual funds run by private sector were not allowed
Takeovers regulated only through listing agreement between
the stock exchange and the company concerned
Insider trading, fraudulent and unfair trade practices, etc.
were common as they were not illegal.
THE SECURITIES AND EXCHANGE BOARD
OF INDIA ACT, 1992
To address all these problems and issues found in the securities
market in the absence of proper and appropriate legislation, the
Securities and Exchange Board of India Act, 1992 ...