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JPC to submit stock scam report on August 31

The Reserve Bank of India and the Unit Trust of India would figure among the first list of witnesses to be called by the Joint Parliamentary Committee probing the March crash in stock markets.

Probe chairman Shriprakash Mani Tripathi told reporters that the committee would be able to complete its work and submit its report to Parliament on the last day of the monsoon session, which runs from July 23 to August 31.

He expressed the hope that the committee would be able to start its main work of calling witnesses from July 9.

The JPC was set up on April 26 with 20 members of the Lok Sabha and ten members of the Rajya Sabha to probe the unusual fluctuations in the stock market after the presentation of the Union Budget.

The JPC has so far held three sittings to hear out the various players in the stock market. It listened to the views of two independent experts, both from Calcutta, at the end of the third sitting Friday, on how the market functions, with special emphasis on shortcomings in the regulatory mechanism.

Tripathi said the view he got Friday was that the average Indian investor made low investment in the stock market as compared to the institutions mainly on account of lack of trust.

He said the expert L C Gupta, gave the impression that banks attracted the largest portion of investments in India. The other expert Ajit Dey, a former president of the Calcutta Stock Exchange, said the market regulatory mechanism had not been alert to the desired extent.

Such a trend could prove harmful to the stock market, Tripathi said on the basis of what Dey told the committee.

The committee is scheduled to hold its next sittings on June 25, 26, 27 and 28.

UNI

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