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Advisers doubt enforcement agency effectiveness to clamp down on abuses
Investment advisers and investor protection groups in the UAE have raised questions about the effectiveness of India’s enforcement agencies and regulators when it comes to corporate governance laws, in view of the increased fraud by promoters of listed companies.
The Registrar of Companies, the Securities and Exchange Board of India (SEBI), Bombay Stock Exchange, the Reserve Bank of India and the Prime Minister’s Office (PMO) have been blamed for failing to ensure companies comply with corporate governance law to protect investors.
“Though India has one of the most stringent and rigorous corporate governance laws in place, investors are taken for a ride by some corporates with [the] ‘right connection’ at high places,” said Jiten Puranmall, chartered accountant and legal consultant with JP Associates, Dubai.