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Conduct code mooted for financial journalists

An independent expert deposing before the Joint Parliamentary Committee probing the multi-billion stock scam on Thursday suggested that a code of conduct be evolved for the media covering the capital market.

Briefing reporters, JPC member Margaret Alva said the expert, C R L Narsimhan, deputy editor, The Hindu, informed the committee that he was suggesting this as media may have played a role in the scam by projecting some companies involved in the stock market.

She said Narsimhan told the members that there was an erosion of the value system in the country which had its implications for the stock exchange as well.

He said that the unrealistic nature of wealth created and lost in the stock market was not yet fully understood by the common investors and therefore the need for investor education, particularly the small investors and depositors.

Narsimhan said the scam should be understood in the context of the economic and financial system as a whole, which seems to be in transition.

He said stock market was given a larger-than-life role in the economy and society without realising that these markets are often manipulated.

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