Still Asleep

In our great Hindi films, the entry of the police is always when the act is over. This is universally true in the financial field also. A company like CRB decides to take the investors for a ride. Offers them the carrots of incentives on the FDs and collects money.

To add to that, offers them the debentures, places the shares of CRB global bank, float companies, mutual funds, banks and finally walks away with public money. All this seems such a cake walk.

The credit rating agencies, RBI, the stock exchanges and the regulatory body wake up when everything is over.

I think we believe in management by crisis and have decided not to be proactive. Being strong followers of Mahatma Gandhi, we believe in the three principles i.e. speak no evil, hear no evil and see no evil. We have decided to depend more on self-regulation.

One day we see and admire a full page photograph of Pavan Sachdeva in newspapers, read success stories and the other day we discover CBI officials at his neck.

The history of the Indian capital market reveals that there has to be a scam for reforms to take place. If we have decided to learn and act only after scams, we are paying a very high price. Why can't we anticipate? Why can't we learn from others mistakes?

CRB Capital was a category-I merchant banker, but if the association of merchant bankers is questioned, they will say: We were not aware of their intentions. Care will say its rating had a particular review period, and that till that time they could not do anything. If no one is accountable, then history will keep on repeating.