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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (7268)	9/27/1999 6:13:00 PM
From: sea_biscuit	Respond to of 12475

I would wait until Harshad Mehta is actually punished in a tangible way, like Milken was, here in the US of A. In the 50-odd years since independence, court judgements have ceased to have any sanctity in India.

To: Cynic 2005 who wrote (7268)	9/27/1999 9:00:00 PM
From: Rational	Read Replies (2) \| Respond to of 12475

Mohan and others here: I had done research on what Harshad did. He simply shorted government bonds by borrowing them from nationalized banks, promising the banks that the profits would be theirs after a commission for himself -- in a period of predictably increasing interest rates. In India, the financial systems did not define short-selling well and so Harshad's actions were not illegal at all. But, Harshad's actions got other problems and some bureaucrats were quite envious. Thus, it was a problem of the financial system then in India, not Harshad's. In any case, look at what the nobel laureates at Long-term Capital did in US: they basically were wrecking a disaster and a lot of their actions were based on governments' confidential information; totally illegal. But, Greenspan stepped up to rescue.