Cross-selling and mis-selling practices just refuse to die in financial institutions. After the Wells Fargo saga, the Indian stock market regulator (SEBI) has found that top Indian brokerage houses indulged in wrongdoings by mis-selling products and opening client accounts without their permission.
Preliminary investigation by SEBI has found that Anand Rathi, Motilal Oswal, IIFL and others opened fake ledger accounts without client knowledge, mis-sold commodity contracts by promising too high returns without delivery and traded without client authority. Such systemic wrongdoing shows brazen disregard for law with the fines considered a minor part of doing business.
US had Congressional hearings. Stumpf had to appear before the Congressional Committee and Wells Fargo has stated that they will claw back $44 million from his compensation. Clinton has pledged to hold Wells Fargo responsible.
There has been no such response from Indian politicians. Wonder what the Indian regulator will come up with? Fine of a few lakh rupees?
No comments:
Post a Comment