From airlines to realty, the Indian government has practically announced that almost every industry, even if it is in trouble because of its reckless expansion, will be bailed out at taxpayers’ expense. With just a few months to go for the general elections, the Congress-led United Progressive Alliance has no qualms about using taxpayers’ funds for loan melas to corporate India. Its task has...

In 2005, SEBI (Securities and Exchange Board of India) plugged loopholes in the preferential allotment rules by introducing a stringent three-year lock-in and regulating the price at which preferential equity/warrants could be offered. This ended promoters’ self-enriching game of giving themselves equity at a discount and making a profit by selling existing shares. But it didn’t matter. We...

Sometime in the middle of October, when mutual funds, especially fixed maturity plans (FMPs), faced huge redemption pressures, the market was rife with rumours about the serious problems faced by several fund houses. Lotus Asset Management quickly exited the mutual fund business by selling out to Religare Enterprises. Asset management companies are valued at a percentage of assets under...