Earlier this week, the US SEC imposed a fine on the Chicago Board Options Exchange (CBO) for conduct reminiscent of what used to happen in the Bombay Stock Exchange (BSE) two decades ago. In the early 1990s, the BSE board was dominated by broker members, and allegations of favouritism, conflict of interest and neglect of regulatory duties were very common. At that time, many of us believed that these were the kinds of problems that the US SEC had solved way back in the late 1930s under Chairman Douglas. India might have been six decades behind the US, but it is widely accepted that security market reforms in the 1990s solved this problem in India, though this solution might have created a different set of problems.
For more:
http://www.iimahd.ernet.in/~jrvarma/blog/index.cgi/Y2013/CBOE-2013-BSE-1993.html
For more:
http://www.iimahd.ernet.in/~jrvarma/blog/index.cgi/Y2013/CBOE-2013-BSE-1993.html
