When Shri Dhirubhai Ambani sneezed, the Sensex caught pneumonia. This somewhat exaggerated saying reflected the dominant position of the late tycoon who, it is said, used to dictate the country´s capital market. Not any more. His scions, Mukesh and Anil Ambani, seem to have lost the position their father held till he was alive. The generation next Ambanis are engaged in a fierce battle for over two months now, leading to speculations that the great Reliance empire may disintegrate like a house of cards.

The corporate battle between the two brothers had the potential of destabilizing the bourses. But nothing of that sort happened. While the market capitalization of the Reliance group companies did receive a setback, the Sensex zoomed past the record 6000-point mark. India´s capital market, thus, proved to the world that it is beyond the manipulative skills of a single industrial conglomerate, howsoever large or influential it may be.

Those political, social and economic systems are known to have reached maturity which function without being influenced unduly by individuals. India seems to have reached that level of maturity. Take the instance of India´s political structure. Having adopted a federal democratic constitution, India has remained a democratic country for more than half a century. There was an aberration during 1975-77 when a state of emergency was declared and all fundamental rights of the citizens were suspended. But, the country bounced back within 19 months and democracy was restored. The people of India proved that they could support and maintain democracy.

Take the case of India´s economy. Once India opened its doors to the global markets in 1991, it has continued to follow an open-door policy. Different political coalitions have come to power and been replaced by others, but the country´s economic policy has remained unchanged. Even the states governed by the Communists have embraced globalization.

India´s capital markets have seen the most volatile behavior in the past. There have been stock-market scams that have hit the ordinary investors quite hard. But, these were merely aberrations whereby individual speculators manipulated the system to rake in crores at the expense of the common man. However, tightening of vigil by the capital market regulator, SEBI, and greater accountability and transparency brought in among those raising capital from the public, have resulted in greater stability. The Indian capital market, it seems, has reached the stage of maturity.

As we enter 2005, the country is bracing up to meet newer challenges. We would be able to meet these challenges effectively only if our systems work efficiently and in a mature way.

As professionals, Chartered Accountants have great responsibility in assuring that our clients, whether individuals or corporates, adhere to the rules and regulations adopted by the government in the field of accounting and taxation. The society at large looks up to us in this regard.

Wishing you a very prosperous and happy New Year.

With warm regards,