One Man Pulled The Biggest Scam In the Indian Stock Market

The Indian government realized the importance of transparency in the trading of shares. They also learned the fact that banks could not be linked to government bonds.The loss to the investors was also not bearable, and certain protective measures had to be instituted. The Indian capital market was extremely vulnerable and had no regulatory measuresThe remedial measures that were taken were the following:1. The Securities and Exchange Board Of India (SEBI)was set up in 1992 by the government to oversee and regulate the Indian Capital Market.2. SEBI would have the power to regulate and approve by-laws of stock exchanges, inspect the books of financial intermediaries such as banks, get companies to list themselves, and also register brokers.3. There would be a move to make the market more transparent and trading overboard.4. There was only the Bombay Stock Exchange(BSE), but now a new stock exchange would be set up as the National Stock Exchange Of India (NSE)5.During that time, all trades were entered by hand and settling of the trade was done in 14 days’ time. Now, it takes only 2 days to exchange shares and settle the amount between the seller and the buyer. It is all automated.6. Another thing is that the buyers did not have to maintain margin money in their accounts to buy shares. Now they need to have a balance, or they cannot buy shares. SEBI is very particular about it to avoid fraud.Harshad Mehta perpetuated the most shocking scam in the Indian stock market. Many remedial measures were taken after that. Even so, other scams have taken place in the stock market.As far as possible, things are more transparent, and trading is completely online.Let us hope that everyone gains and becomes rich in the future, and no one who invests in the stock market loses…