NSE SCAM - P.Chidambaram’s Capture & Control over NSE
The flow of events
Year
1998
Karti Chidambaram actively started trading in the stock market
2004
P Chidambaram (PC) became the Finance Minister
Act of Regulatory Capture by P Chidambaram
2005
M Damodaran became SEBI Chairman

M Damodaran didn’t agree over P. Notes as proposed by P. Chidambaram and therefore the relations turned sour.
2005
PC made K.P. Krishnan (KPK) as Jt. Secretary in Capital Markets Division – Department of Economic Affairs (DEA), Ministry of Finance (MoF)

2008
M Damodaran was removed as SEBI Chairman, driven by KPK on behalf of PC
Since then Damodaran is silent as he has been settled by Chidambaram
2008
CB Bhave was made SEBI Chairman by KPK on behalf of PC. The appointment itself is questionable as Bhave was appointed SEBI

Chairman despite not having applied for the post nor was he amongst the shortlisted candidates by the Search panel. Infact the SEBI was investigating NSDL IPO Scam which happened when CB Bhave was MD&CEO of NSDL
2008
P Chidambaram began to place his loyal people at key positions

to have complete regulatory capture with KM Abraham and MS Sahoo (who was earlier in Finance Ministry) as Members in SEBI and S Ramann as OSD in SEBI under Bhave. CKG Nair was given post of Director in Capital Markets Division – DEA, MoF under KPK
Kohinoor City, a