SECURITIES SCAM: GENESIS, MECHANISM AND IMPACT

AUTHOR – MANSI SRIVASTAVA*, LOKESH MISHRA** & DR AMIT DHALL***,

*STUDENT OF LAW, AMITY LAW SCHOOL, NOIDA, UTTAR PRADESH

**LEGAL RESEARCHER, INDEPENDENT AUTHOR

*** FACULTY OF LAW, AMITY LAW SCHOOL, NOIDA, UTTAR PRADESH

BEST CITATION – MANSI SRIVASTAVA, LOKESH MISHRA & DR AMIT DHALL, SECURITIES SCAM: GENESIS, MECHANISM AND IMPACT, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (5) OF 2025, PG. 757-766, APIS – 3920 – 0001 & ISSN – 2583-2344.

INTRODUCTION

In April 1992, the first press report appeared indicating that there was a shortfall in the Government Securities held by the State Bank of India. In a little over a month, investigations revealed that this was just the tip of an iceberg which came to be called the securities scam, involving misappropriation of funds to the tune of over Rs. 3500 crores ( about $ 1.2 billion). In an ever expanding ambit, the scam has engulfed top executives of large nationalized banks, foreign banks and financial institutions, brokers, bureaucrats and politicians. The functioning of the money market and the stock market has been thrown in disarray. The scam has generated such immense public interest that it has become a permanent feature on the front pages of newspapers. A large number of agencies, namely, the Reserve Bank of India (RBI), the Central Bureau of Investigation (CBI), the Income Tax Department, the Directorate of Enforcement and the Joint Parliamentary Committee (JPC) are currently investigating various aspects of the scam.