ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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CAPITAL MARKET-High Cost of Liberalisation

High Cost of Liberalisation IP the capital market, particularly the primary segment of it, is getting murkier by the day, the blame must rest with the government and the SEBI. ln its enthusiasm to prove the success of so-called economic liberalisation, the government encouraged exaggerated expectations among the investing classes. SEBI for its part permitted free pricing without setting up norms and rating arrangements, thereby virtually inviting private sector companies to exploit the gullible public. Merchant bankers, brokers, underwriters and other players in the capital market sought to grab what they could. The authorities and the market have failed to enforce a modieum of discipline as to the end-use of the funds so liberally obtained. And now it has all boomeranged.

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