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PRAVEENA 10A21E0001

Placing assets in hands of others requires immense trust. Unknown people like untrustworthy stock broker or insurance agent or an attorney. Financial scandals shock us precisely because they involve people and institutions that we should be able to trust.

Finance covers a broad range of activities but the two most visible aspects are financial markets such as stock exchanges and the financial services industry. Though law governs much financial activity, strong emphasis must be placed on integrity of financial professionals and on ethical leadership in our financial institutions.

Duties of Judiciaries (Held in trust) Fairness in sales practices. Securities markets.

The securities and exchange board of India based key operators. Including Indiabulls and Karvy stock broking from operating in the stock market. Banned 12 depository participants from opening fresh accounts for their involvement in the initial public offer scam. It also banned 85 financiers from capital market activities.

National Thermal Power Corporation Ltd's Rs 5,368.14 crore IPO (Oct 7-14, 2004). The retail portion was oversubscribed 3.73 times and the non-institutional portion by 11.93 times. Key operators used a total of 12,853 afferent accounts for cornering 2,750,730 shares representing 1.3 per cent of the total number of shares allotted to retail investors.

Tata Consultancy Services Rs 4,713.47 crore public offer (Aug 19-23, 2004). The retail portion was oversubscribed 2.86 times and the non-institutional portion by 19.15 times. Key operators used 14,619 'benami' accounts to corner 261,294 shares representing 2.09 per cent of the total shares allotted to retail individual investors.

Dinesh Dalmia was the managing director of DSQ software limited. When the central Bureau of Investigation arrested him for his involvement in a stock scam of Rs 595 Cr. Dalmias group included
DSQ holdings ltd Holder properties and Traders Ltd Powerflow Holding and Trading Pvt Ltd.

Dalmia resorted to illegal ways to make money Through partly paid shares of DSQ software Ltd In the name of New vision investment Ltd, UK. Investigation showed that 1.30 crore (13 million) shares of DSQ Software Ltd had not been listed on any stock exchange.

Uday Goyal, managing director of Arrow Global Agrotech ltd. He was yet another fraudster who cheated investors promising high returns through plantations. Goyal conned investors to the tune of over Rs 210 Cr. He was finally arrested.

Two investors files complaint. Over 43,300 persons had fallen into Goyals trap. The company's directors and their relatives had misused the investors' money to buy properties. The High Court asked the company to sell its properties and repay its investors.