A timely regulatory step

The very manner in which the BO accounts were opened, and there were 25,000 in all, points towards an impious intent of the bank.

Such affairs are not a new phenomenon in our share market operation. Inside trading and different manners of manipulations had been resorted to in the past to reap a windfall profit.

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We must not lose sight of the fact that our bourse is in a very nascent state and illegal acts such as manipulation and monopolisation can only be at the expense of the common subscribers who will inevitably be at the losers' end in the absence of a level playing field. We feel that these acts could not have been possible without active collusion between the insiders, something that the investigation will hopefully unearth.

We are constrained to ask a few questions to the relevant authorities. First, are the legal provisions that govern the working of the share market adequate to protect the general subscribers' interest? Secondly, if so then do the legal provisions contain sufficient punitive measures to punish the manipulators?

Admittedly, a free market driven capital economy is our goal and we are presently going thorough the critical phase of capital market formation. This makes it all the more incumbent upon all to take measures that would inculcate rather than erode confidence in our share market. That can be possible only if we modernise our legal framework and bring it on a par with international standards.

Otherwise, attempt to reap a windfall through illegal means will only result in a devastating whirlwind for us.