The Reliance share switching scandal, gross disappointment with Morgan Stanley’s Mutual Fund issue, misdemeanors of the so-called plantation companies and the turbulence in the NBFCs with the CRB group in the vanguard hurt the secondary market and further eroded investors’ trust in the stock market. Primary market scam of the mid-1990s, an important one in this sequence, which meant unscrupulous fly-by-night promoters made good with public money and some of them even ‘vanished’ after collecting funds from the public, severely shook the confidence of the individual investors. In addition, communal disturbances -- the latest being the Gujarat carnage,.
