Letters: Not a prudent decision

Financial scams as an outcome of unscrupulous CIS are akin to infamous ponzi schemes of 1970s, 1990s

With reference to Somasekhar Sundaresan’s article, “A tightrope walk for Sebi” (May 5), relinquishing the statutory mandate to regulate collective investment schemes (CIS) may not be a prudent decision by the capital market regulator.
 
Financial scams as an outcome of unscrupulous CIS are akin to infamous ponzi schemes of the 1970s and 1990s. They have deteriorated the financial health of depositors and the state’s financial systems of different orders.
 
The most recent instance is from early 2012 when the chairman of Saradha Group realised it would lose returns from its media and realty businesses. The group might have