Capital Foundation Society

Dr. Sethi.jpg 146K View Download Dr Vinod Sethi is M.A. , LL.M., Ph.D. and has been teaching at Delhi University for over 40 years,  he has been the Secretary General of Capital Foundation Society which has organised over 200 Conferences and Debates on topical issues. He is also the recipient of several Awards and Honours.  Since last twenty years he has been organising Budget Debates and its impact on Capital Market. The budget must come to the rescue of samll investers who have lost all their savings during the recent global crisis. Losses to investers are more on account of frauds played by the Indian Companies than external global factors.  Most companies cheat the investers by showing rosy picture at the time of IPO and over evaluating their net worth and gradually fleecing them by corporate frauds.  Many companies get delisted or go in for mergers and the invester finds himself helpless. After delisting the small invester finds himself completely at loss as suddenly he finds no news  from the company and all his money becomes zero. There is no law which imposes any penalty on such fraudulent companies. Accounting frauds,  high salaries and perquisites of directors eat away all profits which should go to shareholders.  Price manupulations in market is  another way companies cheat investers [ insider trading ] Budge must provide for checks on such frauds to restore the investers confidence in market. Mr Mukherjee must revert back to the system of Controller of Capital Issues when all compnies were to float shares on face value and without premiums.  Jet Airways,  Edelwise, Reliance Power and hundreds of other companies are  much below thier issue price despite several years of work.  Need to make system more transperant. After revision of salaries there should be increase in Tax Exemption Limit otherwise it would amount to giving by one hand and taking it back by the other.    Yours sincerely,   Dr Vinod Sethi 9818250038