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Govt appoints JPC to probe stock scam

The government on Thursday appointed a joint parliamentary committee to probe the recent stock market scam.

Parliamentary Affairs Minister Pramod Mahajan moved a resolution in Lok Sabha in this regard.

The JPC will comprise 20 members from Lok Sabha and 10 from Rajya Sabha.

Mahajan said the JPC would submit its report to Parliament by the end of the next session.

The JPC would probe recent irregularities and manipulations in the stock market in all their ramifications in all transactions including insider trading, relating to shares and other financial instruments.

It would go into the role of banks, brokers and promoters, stock exchanges, financial institutions, corporate entities and regulatory authorities and fix responsibility of persons, institutions or authorities in these transactions, Mahajan said.

The committee, which would start functioning from the day it is constituted, would identify the misuse, if any of and failures or inadequacies in the control and supervisory mechanism.

According to its terms of reference, the JPC would make recommendations for safeguards and improvements in the system to prevent recurrence of such failures and suggest measures to protect small investors.

It would also suggest deterrent measures against those found guilty of violating the regulations, Mahajan said.

Lok Sabha Speaker G M C Balayogi would nominate one of the member of the committee to be its chairman, he added.

The members of the JPC from Lok Sabha are: Mani Shankar Aiyar, Margaret Alva, V P Badnore, Baliram, Anant G Geete, Vijay Goel, C Kuppusami, Jagannath Mallik, Rupchand Pal, P H Pandian, Harin Pathak, Pravin Rashtrapal, S Jaipal Reddy, Akhilesh Singh, Maheshwar Singh, Prabhunath Singh, Kirit Somaiya, Kharabela Swain, Prakash Mani Tripathi and K Yerrannaidu.

The resolution, which was adopted unanimously by the Lok Sabha, has been sent to the Rajya Sabha for it to nominate 10 members.

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