10. Mutual Funds Scam

There were many mutual funds scam which took place till date, but the UTI bailout reflected the lack of proper application of law in the Indian financial market. In the UTI scandal, the only sufferers were the tax payers who suffered a loss of 4800 crore in the process, as UTI had its own mutual funds norms. After three years, the firm started purchasing the Ketan Parekh’s leftover stocks and suffered heavy losses during this process. Apparently during the economic downfall during 1999 and 2000, the mutual funds’ investors had to suffer lose, and hence it will take quite a long time to win back the trust of the mutual fund investors.