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JPC to look into India Inc's role in stock scam

P Vaidyanathan Iyer in New Delhi

The joint parliamentary committee probing the stock market scam will be dwelling on all aspects of promoters and corporate entities, including their nexus with brokers.

The final report of the committee, which was expected in the winter session of Parliament, would look into the role of corporates in the stock market irregularities, JPC sources said.

The JPC has drawn information about corporates largely from various reports of the Securities and Exchange Board of India, which has hinted at companies working closely with brokers to influence stock prices.

"We have obtained information on India Inc related to the stock scam independently from banks and the Unit Trust of India," said a JPC member.

He noted it would be wrong to say that corporates had been spared. "The final report will have an entire chapter on corporates," he added.

JPC sources said the committee's report would essentially comprise three parts.

The first part will include recommendations, the second part will be dedicated to UTI. The third part will consist of 11 chapters, one of which will focus on promoters and corporate entities and their role in the stock market irregularities.

The other chapters will be one each on brokers and intermediaries, banks, stock exchanges, foreign institutional investors and overseas corporate bodies, Sebi, the Reserve Bank of India, the department of company affairs, action taken by investigative agencies, the ministry of finance and protection of investors' interests.

The committee had already finalised four chapters, with another four being in the final stages of completion, sources said.

The contents will be supported by responses from various investigative agencies to 1,800 queries put forth by the committee members.

Meanwhile, the committee has also decided to send a list of questions to former Finance Minister Yashwant Sinha.

The stock scam broke out immediately after Sinha presented his Budget for 2001-02.

However, no final decision had been taken on calling the minister to depose before the committee, sources said.

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