India and the US are the two democracies, which function in a very different manner.
Let’s have a look at how agencies in US and India work towards/act against the corrupts in the system. The laws are same for all in the US, while in India the laws are same but implementation depends upon the position of the person; if he/she is in an influential position (Like politician, celebrity) they can find means to escape from the system (Judiciary). Below given is a classic example of how quick the US agencies are in terms of investigating the case and the accused is charged under the court of law. The financial markets are so transparent, that the scam comes out in public almost immediately whereas in India, the investigating process is slow and markets are not transparent. It takes long turnaround time to arrive at the conclusion and the accused is roaming free till then.
The federal authorities in Manhattan have done a commendable job by arresting Chris Collins a Republican congressman, on insider trading charges on 08th August 2018
How do agencies work in the US?
Chris Collins, New York Republican Rep. (equivalent to LokSabha MP) is a Congressman and a close associate of Trump’s regime; he is been with Trump since endorsing him in 2016. He helps writes the laws of the country (United States) by virtue of his office, however, he presumed that the law doesn’t apply to him.
He was always defined by his credentials as a rich businessman in politics. In spite of Collins being a lawmaker in the United States, he has been under a constant scrutiny for over a year and now has been charged by the agency. This indictment has thrown a new light that has entangled his between Political and Business life.
The federal authorities in Manhattan have done a commendable job by arresting Chris Collins a Republican congressman, on insider trading charges on 08th August 2018. He was charged because he had passed on the inside information about a biotechnology company to family members so they could profit from illicit trades. However, in his statement, he has said that he would fight the charges despite his indictment. .
Collins and his son, along with the father of his son’s fiancée, pleaded not guilty to all charges brought against them by federal officers in Manhattan.
The NSE Co-location scam first came into light when Whistleblower sent a complaint to NSE in early 2015 which were ignored
After this indictment, he posted on twitter where he said, “it is in the best interests of the constituents of NY-27, the Republican Party and the President Trump’s agenda, I have decided to suspend my campaign for re-election to Congress”. 
It can be inferred that a person who is politically so strong, can also get into legal trouble in the US, this shows us how independent are the investigating agencies and the transparent judicial system in the US which ensures the law is equal to all.
In contrast, let’s see how was a similar scam in India dealt with (NSE Co-location Scam)
The scam was executed systematically by officials. They took the advantage of co-location set up, wherein the broker’s computer is located in the same area as the Stock Exchange’s server rigging its high-frequency trading systems (HFT). This gives a 10:1 (typically) speed advantage for the broker. The officials have been successfully manipulating NSE from the year 2010 to 2014. 
The scam first came into light when Whistleblower sent a complaint to NSE in early 2015 which were ignored and when money life questioned NSE’s inaction, ‘NSE sued Money life’
Since there was no action taken by NSE against the complaint from Whistleblower, a letter was referred to SEBI (by Whistleblower) in November 2015. SEBI probed into this case and confirmed that NSE systems are prone to manipulation and also conducted a forensic audit which proved that the NSE staff was involved in the scam and they would be issuing a notice to 13 officials. However, they have still not arrived at any confined conclusion.
Recently, CBI has probed into the case and named Delhi-based broker OPG Securities among the key conspirators and the investigation is in progress.
We just hope faster conviction from the agency for the ongoing investigations NSE Scam and charge the accused under the court of law and justice for the common man who is trading in the financial markets.
When we compare the US with India in this case, India lagged behind due to the following reasons;
- The investigating process is slower in India; SEBI took 2 years to investigate NSE case
- The political power is higher in India, still, the masterminds have not yet resigned from their position.
- The transparency needs to be improved in Indian financial markets for overall growth.
- The loopholes in the HFT need to be addressed soon.
- The agencies are reluctant to charge people in an influential position.
The Indian agencies have to learn from the US agencies on how quick they were in investigating a scam of insider trading and charged a powerful Politician like Chris Collins despite him being close to the President himself. The law is same for all, be it a Politician, Celebrity or a common man. The Indian investigating agencies need to be fair and avoid manipulations which result in a financial loss to the common man and breach of trust to all relevant stakeholders.
Markets need to be more fair and transparent in order to grow, until and unless there is transparency in financial markets, the trust of the common man in the Stock Market will not be restored.
 Chris Collins: Republican charged with insider trading – Aug 11, 2018, Theguardian.com
 Chris Collins drops reelection bid – Aug 11, 2018, www.vox.com
 Anatomy of a crime P2 – The amount of the HFT loot – PGurus.com
1. Text in Blue points to additional data on the topic.
2. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.
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