oppn parties How To Use Public Money As Your Own

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  • Prime Minister Modi introduced the three IAF group captains - Prashanth Nai, Ajit Kirshnan and Angad Pratap - and Wing Commander Shubhangshu Shukla, who have been shortlisted for the first manned space mission of ISRO
  • Centre appointed former SC judge A M Khanwilkar as the new Lokpal. It also named three judicial and three non-judicial members of the Lokpal panel
  • A 9-judge Supreme Court bench started hearings on whether states are entitled to tax mineral-rich land in their respective states
  • Taking note of the huge disparity in charges in government and private hospitals for most treatment procedures, the Supreme Court asked the Centre to strictly enforce the CGHS rates or warned that the court would have to step in
  • Calcutta HC ruled that regardless of a woman employee being regualr or on contract and whether her contract permitted maternity leave, employers cannot deny childbirth and maternity leave to any women employee as it 'seeks to create a class within a class which is not permissible'
  • Sebi asks MF companies to disclose more risks associated with their small and mid cap funds
  • Vodafone Idea board approves Rs 45000cr funding infusion
  • NCLT clears Hinduja acquisition of Reliance Capital at Rs 9650cr upfront payment within 90 days of approval of resolution plan
  • Stocks returned to winning ways on Tuesday: Sensex gained 305 points to 73095 and Nifty 76 points to 22198
  • Commonwealth Chess championships: Mitrabha Guha wins title by scoring 7.5 points in 9 rounds
  • WPL: RCB beat Gujarat Giants by 8 wickets
  • Bengal starts paying MNREGA workers out of own funds as Central disbursement is stopped due to alleged 'discrepancies' in accounts
  • ISC chemistry paper postponed to March 21 just hours before start of exam due to "unforeseen circumstances"
  • Ghajal legend Pankaj Udhas passes away. he was 72
  • Calcutta HC says that there is no stay on arresting TMC leader Shahjahan and he should be arrested immediately
Cross-voting in Rajya Sabha elections enables BJP to snatch seats in UP & Himachal /////// Congress government in Himachal in trouble as some MLAs revolt
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How To Use Public Money As Your Own

By A Special Correspondent

Whom do you trust with your money nowadays? India is famous for over-regulating all its sectors and having a watchdog for each one of them. Yet scams after scams surface with unfailing regularity to bring down investor confidence to its lowest.

The latest to join the bandwagon of those who treat public money as their own is Karvy Stock Broking Limited. Market regulator Sebi has banned the company from doing fresh business for allegedly illegally using the money and securities belonging to its clients to fund its real estate arm, Karvy Realty India Limited. Karvy Stock Broking has over two lakh clients.

The matter came to light after the National Stock Exchange did a routine inspection of its books. It reported that Karvy Stock Broking had transferred a sum of Rs 1096cr to Karvy Realty by misusing the power of attorney given by its clients to make deals on their behalf.

This is a shocking matter. If the allegations are found to be true, Karvy not only violated provisions of the Companies Act, but it also cheated its clients and misused the trust they placed in it. It will therefore face punitive action under the criminal laws in addition to the other applicable laws.

Earlier, NBFCs came under the scanner when IL&FS went under. In that case, the role of the chartered accountancy firms and rating agencies was also found to be not above board. Then PMC Bank and DHFL went bust. Again, the role of those who are mandated to raise questions in the first instance was found to be suspicious. It seems that the Indian financial sector is under siege and no one knows how to set things right.

This brings us to the main question. Why do the plethora of rules and regulations fail to prevent these frauds? Why are they always discovered when the deed has been done? Why do we not have inbuilt checks to prevent them from taking place in the first case? If chartered accountants do not alert the regulators about divergences in company accounts, who will? If rating agencies do not provide the correct picture of a company's health to the investors, who will? It seems that despite all systems being in place, the Indian investor is being taken for a ride and is more likely to lose money by investing after getting incorrect or cooked-up information.