EVERY now and then, capital markets everywhere face challenges posed by participants who attempt to sidestep the law.
Regulations related to capital markets have been crafted over the years and they keep getting refined to suit current times.
The idea is simple: to ensure trust and confidence in the markets, regulators have to enforce their regulations and securities laws to ensure that the markets operate fairly and orderly.
A well-regulated market has the prospective to boost additional investors to participate, and contribute in promoting the development of the economy.
Capital markets that fall short of high standards of regulation and transparency will struggle to achieve those goals.
The highly-publicised case of Serba Dinamik Holdings Bhd is relevant in this regard.
The case entails allegations of false statements relating to financial results.
This is a…