Business Ethics and Corporate Governance, Second Edition

LACUNAE IN INVESTOR PROTECTION

Though there is a redressal mechanism in place in the country, investors could not get their complaints adequately addressed to, much less solved to their satisfaction by these public authorities. Multiplicity of authorities, overlapping functions, lack of knowledge and understanding of the common investor about these agencies and lack of enforcement have all acted against investor protection. Notwithstanding the existence of this seemingly comprehensive network of public institutions established for investor protection in India, a series of scams has taken place that has shaken the confidence of investors since 1991, the year of economic liberalization.

box 8.2 GRIEVANCE REDRESSAL PROCESS

There will be occasions ...