7. Favoured Share Scam

This type of scandal was eventually an outcome of the extensive cost fixing on the derivative market. Besides increasing fresh capital, firm’s advocates in a quick coordination with the general body authorizations, began to transfer shares in their account, on a privileged basis. They also bought these shares at a considerable reduction from the market rate in a thought that the share prices would never fall. Companies started this trend and accrued profits of nearly 550 crores until Securities and Exchange Board of India (SEBI) formulated strict guidelines to abandon the market practice.