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@deepakshenoy So nothing changes in India....let me tell you a story from 2000 when I was a trainee in a regional stock exchange ( remember those entities?) In the listing department....Gaga days of Indian IT story...(1/n)
@deepakshenoy So a company applies with a draft prospectus for exchange approval , enthu 21 year old I was, I did my due diligence , found too many holes and put up a note saying refuse permission. Company had applied to the larger exchanges, who approved (2/n)
@deepakshenoy My boss , a very straight forward guy, called the promoter and asked him to explain. Some powerful brokers arm twisted everyone and issue went through. On listing day, surveillance found circular trading (3/n)
@deepakshenoy Our markets team found the promoter sitting on the floor at a broker terminal and trading , surveillance team locked things down, reversed trades and intimated other exchanges to stop trade. Who listens to a regional exchange !! (4/n)
@deepakshenoy Threats, inducements, recommendation phone calls were made and exactly 15 days later , the company vanished. Frantic phone calls later, investor assistance cell goes in search - registered office turns out to be a small 2bhk house, no employee to be traced (5/n)
@deepakshenoy SEBI starts investigation which went on for years, no one could explain why the larger exchanges forced a listing, why the boroers involved went Scot free or the merchant banker who had not done his work didn't get barred forever 6/n
@deepakshenoy The only time I faced a SEBI investigation.... Spent a year in the exchange before my MBA and I would sit and smile at all the corporate governance lectures , efficient market theories and insider trading rules n/n
