Singh’s case again highlights a systemic weakness not an individual problem. Companies are not directly accountable to depositories or to Sebi; in most cases they are accountable to Ministry of Company Affairs (MCA). Since there is little co-operation or coordination between MCA and Sebi, there is a systemic weakness. Only last week, a business news channel carried a report saying 100 companies had introduced physical shares in the market without requisite approvals nd they found their way to the market.

NSDL also alleged that it had written 50 letters to Sebi in this regard; Sebi in turn said that its Secondary Market Advisory Committee is discussing the issue — this is a decade after the depositories came into existence and compulsory dematerialisation was introduced. Until Sebi finds a solution, investors such as Singh will continue to be harassed by companies and their agents.