Nikhil Inamdar & Archana Shukla
BBC News, Mumbai
“This is unprecedented,” says Hemindra Hazari, an independent business analyst. “Until yesterday it was allegations from the outside, now internal problems have become public. Something is seriously wrong.”
But things could take a turn for the worse if the controversy snowballs further, says Mr Hazari.
“Institutional money can flee if internal warnings go out around compliance issues. And then retail investors will slowly start pulling out of the market,” he adds.
“For me what’s most astounding is that the government has been totally silent. They need to step in now. When serious allegations are made against the head of a regulator, the government or the judiciary are the only higher authorities which can authorise a credible investigation,” said Mr Hazari.
