The Effectiveness Of Stock Market Regulations In Combating Financial Frauds: A Comparative Study Between USA And India
- IJLLR Journal
- 1 day ago
- 2 min read
Bhagirath Mehta, Unitedworld School of Law, Karnavati University
Dr. Mayura Sabne, Professor of Law at Unitedworld School of Law, Karnavati University
ABSTRACT
Financial frauds are a major and significant challenge to the integrity and stability of the stock market around the world. In order to mitigate these kinds of fraudulent activities, to protect the investors and to ensure the market efficiency we need effective regulatory framework in place. In this study we will compare the matured securities market of USA with the evolving securities markets of India. The article explores various topics such as regulatory framework, major case studies in both jurisdictions which shook the public at large and suggests some places where both countries can improve or should improve. By analyzing the major frauds in both the countries, the study tries to highlight various factors which can influence or have influenced in the past such as loopholes, effectiveness of regulations, corporate governance practices and politics.
One thing is for sure that the USA have more stringent laws and requires more proactive monitoring of the market and financial institutions while in India implementation of law needs to be stronger. This shows that both countries have to learn from each other that are India needs to implement technology driven surveillance on companies and have to adopt stringent punitive measures in case of frauds whereas USA can learn agility in responding to any emerging frauds, can enhance whistleblower protections.
Last but not the least, the study also includes some suggestions to both the countries in places where they can or have to improve by offering policy recommendations such as promoting market integrity, introduce mechanisms to reduce financial frauds and enhance regulatory effectiveness in both the countries.
Keywords: Frauds, stock market, regulations, India, USA.
