JKumar Infraprojects Ltd and Prakash Industries Ltd have market capitalization in excess of more than $300 million. SQS India BFSI Ltd, a dividend-paying affiliate of Cologne-based SQS Software Quality Systems AG, has 14 million hours of software testing behind it. To wash it, you connive with the controlling shareholder of a smallish company and buy shares from the market using legitimate cash; prices of thinly traded securities shoot up. Investors should be happy that India now has the forensic capability to go after elaborate pump-and-dump schemes. What should worry investors more, however, is that this overzealous enforcement action is not the usual bureaucratic bungling, but part of a new trend of using primitive justice to fashion clean capitalism.

Source: Mint August 10, 2017 09:45 UTC