The decision to increase the role of stock market was taken, as a part of the ‘shock therapy’, without adequate preparation or understanding of the behaviour of the financial sector and of the major players -- intermediaries, promoters, investors and the regulators – in a country like India, and even ignoring the experience of the 1980s when initially the stock market was given a major push. The gates were thrown wide open as it were. Result: a series of scams of varying gravity with the regulators getting the blame for inexperience, laxity and lacking in proactive approach
