The CPIM on Sunday expressed its concern over terrorists groups investing in stocks and suggested that government should ban investments made by Foreign Institutional Investors (FIIs) through the Participatory Notes route.
Funds routes through participatory notes route account for about 40 per cent of the $8.3 billion invested by FIIs in the Indian securities market in 2006. The share of P-Notes (as participatory notes are commonly referred to) has gone up from 24 per cent earlier this year to the current level, according to SEBI.
Reacting to National Security Advisor M K Narayanan statement that terrorist groups were investing in stocks, CPIM general secretary Prakash Karat the source of funds through PN route was not verifiable for the RBI or SEBI. The Tarapore Committee on capital account convertibility had recommended prohibition of fresh investment through the PN route.
The party, after polit bureau meeting, urged the UPA government to immediately ban fresh issuing of PN notes and phase out the existing PNs in a few months time.
The CPIM polit bureau decided to put on hold acquisition of land for major Special Economic Zones (SEZ) in West Bengal, till the Centre clarifies on its SEZ policy. The issue is being deliberated by a Group of Ministers headed by Foreign Minister Pranab Mukerjee.
Prakash Karat said SEZ was a national phenomenon and not limited to West Bengal alone, while backing the state government on Singur issue. But still, the state government has decided not to acquire any land till the issue is settled by the Centre, he added. The CPIM has already submitted its note on SEZs to the GoM and wants the Land Acquisition Act of 1894 to be reviewed to protect rights of landholders and those dependent on that land.
The polit bureau also discussed the issue of price rise, likely to be raised in the budget session of the Parliament and India’s foreign policy, especially with regard to Iran. “We want India to make its stand clear on Iran in wake of George Bush accusing Iran for trouble in Iraq,” Karat said, while asking government to go ahead on Iran-India pipeline. The issue of communal tension in parts of India was also discussed at the meeting.