Are stronger policies needed to prevent scams?

The recent chit fund scam by Saradha Group is only one in hundreds of examples of fraudulent schemes involving large amounts of money. But what is the main issue here? How effective are policies to keep such cases from occurring? Sandeep Parekh, founder of Finsec Law Advisors and former executive director of the Securities and Exchange Board of India (Sebi); R S Loona, managing partner of Alliance Corporate Lawyers and also former ED of Sebi; financial planner Gaurav Mashruwala, and Ashok Kumar Jha, former Finance Secretary, discuss core reasons behind the problem. Whether the laws are not good enough or it is because of weak implementation, experts explain.