A major reason for loss of confidence in the capital market of general investors has been because of existence of fly-by-night operators who not only misuse public funds but also divert most of it from the companies for purposes other than the reason for which it is raised.

The ANMI has suggested that a mechanism of yearly review by a Sebi appointed inspection team be introduced. Such a team will review the accounts and fund flows of the companies raising funds for specific purposes. It has also suggested that directors be made liable personally, criminally as well as financially, to compensate the company and the investors. Another suggestion by the association is that the structure of Sebi andboard of directors at various bourses be revamped. ``Sebi should be restructured completely so that it is able to device more practical policies and procedures. It has failed in the last two-three years in controlling a large number of market manipulations like BPL, Videocon and Sterlite fiasco.