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Sebi awaits JPC findings to proceed anew in scam probe

BS Corporate Bureau

The Securities and Exchange Board of India chairman G N Bajpai on Monday said that the regulatory body was waiting for the joint parliamentary committee conclusions before proceeding further into stock market scam.

Sebi has so far submitted interim reports to the JPC. Talking to mediapersons after inaugurating the business continuity plan site and regional office in the city, he said, "The JPC is still continuing with its investigations and we are waiting for their conclusions. Sebi will initiate further investigations upon receipt of their decision."

Thus, implying that SEBI has halted investigation into the securities scam of 2001 for the moment.

Bajpai said that in his term at the helm of Sebi, he wanted to ensure real-time settlement between the customer, bank, stock exchanges and depositories.

"Real-time settlement can certainly become a reality as stock exchanges and depositories operate on real-time basis and only the banking system has to be re-aligned," he added.

Earlier, National Stock Exchange CEO and managing director Ravi Narain mooted the idea of 'continuous disclosure' by the corporates about material events that impacts the stock price.

"Time has come for the exchanges to interact with the corporates to ensure continuous disclosure of material events. This, will bring more transparency into the system," he said.

He, however, said that corporates should themselves evolve their own set of rules and regulations, not the stock exchanges.

National Stock Exchange has relocated the business continuity plan site from Pune to Chennai, since Pune was in the same seismic zone as Mumbai where the exchange's central trading and settlement systems are located.

The BCP site at Pune, set up in 1996, was part of the exchange's effort to ensure uninterrupted trading facility to the trading participants.

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