Regulatory Disclosures In Private Placement Memoranda In India's Banking Sector And Their Role In Investor Protection
- IJLLR Journal
- Mar 30
- 2 min read
Nishanth. J, School of Law, SRMIST
INTRODUCTION
In 21st century the world is developing at accelerated rate both economically and socially, we can’t deny the fact that the corporate companies play a major role in that. The banking sector isn’t something new to our nation, there is evidence of banks in India from BC but now the dynamics of banks got changed now it is on a bigger scale even deciding the economic stability of the nation. Since it is a financial institution the core function is finance so it’s a flow of economy. There are many legislation to support the investors because they are the group who invest huge amount of money in the company as to get a financial profit but there are high probability of risk because though the banks are said to be the back bone of the nation but they are highly opaque the public from the shoes of the observer aren’t fully aware of the functions of bank though it’s a part and parcel of their life. Only the professional of the field do have dome knowledge about the mishap. There are many disaster happened in the area of economy of the country like the 2008 economy crisis where it shook the global economy many people lost the jobs and there was a dip in the economy of many countries, it harmed the economic growth throughout the world that is why it is called as Great Regression. So it is necessary to protect the interest of the investor of the bank in order to protect the economy of the country because both go hand In hand. The flow of the finance in the shares of the banks should be highly studied in order to find the position of the domestic investors
The corporate disclosure is one of the main responsibilities of the board of directors of the company to disclose during the time of inviting the investors to contribute to the capital through private placement “to afford investors in publicly-held companies whose securities are traded over-the-counter the same fundamental disclosure protections as have been provided to investors in companies whose securities are listed on an exchange."
