Tag Archives: scandals

A Case Study on SEBI Act and Rules in India

Abstract: Economy of any country largely depends on its capital market now more than ever before. A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise funds by selling securities to general public and other financial institutions. The capital market includes the stock market (equity securities) and the bond market (debt). Capital markets of India are monitored by financial regulator SEBI (Securities Exchange Board of India).




SEBI oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. The need for a financial regulator for a country like India is due to the following reasons as India is an ‘informationally’ weak market, to boost the confidence of lay investors who have been beaten by repeated scams, to soften interest rates and to enhance investing skills in India. But since the formation SEBI in the year 1992 every 2-3 years there has been a new ‘scam’. Each scam has led to SEBI being conferred with greater powers. Scams are administered by SEBI officials.



A Case Study on SEBI Act and Rules in India

Sentencing and prosecution is done by SEBI officials. Recent rise in scams and scandals in Indian market have made investors to doubt on the efficiency of Indian Financial regulator SEBI (Securities Exchange Board of India). Even though SEBI is confronted with numerous powers it is still observed that SEBI is unable to minimize or curb the violations which costs huge to investors and also to the whole economy….
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Case Study for Snow Brand’s Unethical Practices at Japan

Snow Brand Milk Products Co. Ltd. was the largest dairy products manufacturer in Japan while its subsidiary Snow Brand Food Co. was one of the largest meat processing and food products manufacturers. In the year 2000, for the first time since its establishment, Snow brand Milk Products Co. Ltd. posted group losses and had to close some of its dairy factories due to a massive decline in sales of milk products following a food poisoning incident.

In 2002, Snow Brand Milk Products Co. Ltd. liquidated its subsidiary, Snow Brand Food Co. Ltd. due to irreparable damage caused by the unethical practices at Snow Brand Food Co. Ltd. The case examines the events that led to the decline of the company, and the consequences of unethical practices and lack of social responsibility. The case also explores the restructuring/rehabilitation initiatives taken up by Snow Brand after the scandals came to light. Click here to read more…

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Case Study on Scams and Scandals

The Anubhav Plantations Scam: The case is intended to give detailed insight into the fraud committed by the Anubhav group of companies. The case examines how the group was able to defraud the investors and the regulatory authorities with ease and provides information regarding the functioning of the plantation schemes. The case is so structured as to enable students to understand how the Anubhav group of companies defrauded the investors. After reading this case, students should be able to understand how the plantation schemes were structured and how Natesan was able to dupe the investors. The students should also understand the role played by the regulatory authorities in the rise and fall of Anubhav and other plantations. The case is aimed at MBA/PGDBA students as part of the Finance elective curriculum. Click here to read more…

Scams and Scandals

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Harshad Mehta: A scandal to remember….

Harshad Mehta was an Indian stockbroker caught in a scandal beginning in 1992. He died of a massive heart attack in 2001, while the legal issues were still being litigated. Read more to know about the details….


harshad mehta case study

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public Relations Failure: Enron

Little remains to be said about the rise and scandalous fall of Texan energy giant Enron. In the relatively short space of 15 years, Enron rose from nowhere to become the seventh largest company in the United States, and the most well-known energy supplier in the world. It boasted over 21,000 employees and had a presence in more than 40 countries. Read more to know….

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