Search the Internet          Tips  Sites: Finance, Investment

JPC to kickoff investigation by grilling RBI officials

BS Markets Bureau

The 30-member Joint Parliamentary Committee, probing the March stock-market crash will kick off its investigations with the examination of Reserve Bank of India officials at the Oberoi Rooftop at 1100 hrs (IST) Wednesday.

The examination of RBI officials will pertain to the role of the banks in the crises, the connection between Global Trust Bank and Ketan Parekh, the pay order issue between Bank of India and Madhavpura Mercantile Co-operative Bank and general issues connected with vigilance in the banking system.

Post lunch, the JPC members will visit the National Stock Exchange to grill the exchange officials.

They will also be going through documentary evidence presented by the exchange officials pertaining to circular trading, data on price rises in key scrips as well as price manipulation issues.

It may be recalled that even after the March 2 crash and subsequent probes into trading data of various entities, there was considerable manipulation in scrips like Amara Raja Batteries and Cyberspace Infosys, among others.

On Thursday, the investigations will commence with a visit to the Bombay Stock Exchange and they will wind up the day with an examination of officials of Securities and Exchange Board of India -- again at the hotel.

While the agenda does not contain anything about Unit Trust of India, the JPC members are expected to take some time off to meet UTI officials also in order to examine them.

The interim Sebi investigation report has dwelt at some length on UTI's transactions in the secondary market and considering the finance minister's recent pronouncements regarding a probe into UTI, it is expected that the JPC's scope might be widened to include UTI as well.

Powered by

YOU MAY ALSO WANT TO READ:
The Capital Markets Crisis
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report