None of the frauds - Karvy, PMC, PNB, ILFS etc are the handiwork of a few individuals. It's large scale fraud, with many dirty hands.
Looked another way: they are a result of the silence of the honest employees.
thehindubusinessline.com/markets/stock-…
That’s the only way to cut down white collar fraud. Adding more red tape, more rules and processes will NOT help.
The good suffer on behalf of the bad.
We have seen how the auditors, the rating agencies, the watchdogs and even the most sophisticated computer systems are compromised.
We need them to speak up WITHOUT fear
Case in point: Dinesh Thakur whistleblower in the Ranbaxy scam was awarded 48M$, and resulted in a 500M$ penalty on the firm by the USA FDA
in.reuters.com/article/india-…
fortune.com/2013/05/15/dir…
It will blow your mind how a management team played with the lives of people.
And we know how they went on and defrauded Dai Ichi and public shareholders later on...the cases are still going on in our courts.
Archaic rules and regulations perversely make it easier to perpetrate fraud. They will always play catch up in a dynamic market, leaving room open for more fraud.
We need a sharp whistleblower policy, with safeguards against misuse.
/fin