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Part VII: Financial Systems
5. It was thought that SEBI has all necessary powers to control
and regulate the securities market on the one side and effectively
protect the interests of the shareholders on the other. However,
the stock markets in India have gone through one of the worst
and most prolonged crisis in their history, due to the inability of
the market regulator to bring to book market violators.
The SEBI (Amendment) Bill, 2002
Notwithstanding the regulator’s best efforts, the stock market was
plagued by price manipulations and insider trading. SEBI known
for its low indictment rate of violators of its rules hardly penalized
insider traders and was dubbed a toothless tiger. Unscrupulous play-
ers and fl y-by-night operators ...