Thread by @chitti_1729

Let me tell you a kutty story, pay attention listen to me! (Maybe this is why Vijay sang this song, so we could use it in tweets to tell a story🤷‍♂️)

Namba kadaioda arambam is in the year 1992. There's a big scam in markets and the Indian capital market is quite literally shaken and so is the reputation of the BSE which is where the scam happened.

@suchetadalal @Moneylifers #scam1992

The repercussions of this scam was felt across and the government decides to act by setting up SEBI and giving them statutory powers.

A new exchange is setup as a cleaner alternative to the #BSE, enter, #NSE! Now NSE is a more professional, well managed, efficient organisation! But all of that aside, the most important factor is that it is scam free, or at least appears to be.

@suchetadalal @Moneylifers

Now you must be thinking we're reaching the end of our story, everybody is happy, things are going smooth so we are at our forever happy stage as per the kadhai. I did promise it to be a kutty kadhai.

But adhu dhaan illa. Ingadhaan kadhaila oru twistu!!

Fast forward to more than a decade namma main character #NSE the same organisation which was supposed to be a cleaner, safer and more transparent alternative has now gotten itself embroiled in a scam! That too one originating from their own sanctum-sanctorum.

Anything if we know about scams in India is that nothing can happen without support from the regulatory bodies, government employees and a whole lot of other dubious entities.

So now namma main aalu, #NSE who was supposed to lead the way has fallen prey to the very thing it was established to fight.

Kind of like thalaivar becoming baasha to stop raghuvaran, except the intentions here aren't noble!

So here's where I end my summary of the kutty kadhai. Now you can of course figure out what happens next.

Heads start rolling, Media, governement, regulators all of them enter. The story takes a big turn, twist, somersault, everything starts happening.

The #NSE to protect itself issues a defamation notice on @MoneylifeIndia and @suchetadalal , It brings it's army of lawyers to fight. You get the picture!

Now I am going to stop my kutty kadhai here and recommend that everyone read the periya kadhai.

The kadhai of how #NSE which was supposed to be a cleaner alternative went through amazing success, leading to it's hubris, regulatory capture, the algo scam and it's fall from grace.

Written by @suchetadalal and @Moneylifers they have meticulously documented the entire story right from the historical context to the present day situation and also written about how despite the scam, the #NSE still seems to enjoy a near monopoly.

Link: moneylife.in/absolute_power…

This can be a great weekend read. So do buy you copies now and get busy reading!