JUDGMENT

MARKANDEY KATJU, J.—

1.I have perused the judgment of my learned brother Hon’ble S.B. Sinha, J. and am in respectful agreement with the same. However, I wish to add some of my own reasons.

2.In recent years, the country has witnessed phenomenal growth in the field of financial markets. The funds raised by the corporate sector from the capital market have increased exponentially, the number of stock exchanges have increased, the investor community has multiplied. The structural developments in the markets are the inclusion of institutional and corporate members, of stock exchanges, and formation of the regulatory authority ‘SEBI’ to oversee the functioning of the capital market.

3.In recent decades the financial services industry has matured in our country. A large number of mutual funds have been set up by the banks, insurance companies and the corporate sectors, leasing and hire purchasing companies have grown in size, content and operations. Credit rating services have been launched. Venture Capital Funds have been set up to meet the requirements of diversified industrial, research and entrepreneurial enterprises. Reliance on international capital markets has b