BJP demands JPC probe into Sensex crash

Updated on Oct 17, 2007 05:10 PM IST

The Govt's 'irresponsible' conduct and SEBI's 'unwarranted' comments has led to the crash, said a minister.

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PTI | By, New Delhi

Holding the UPA government responsible for the bloodbath at the sensex, the BJP on Wednesday demanded a Joint Parliamentary Committee (JPC) probe to find out the beneficiaries of the crash triggered by SEBI's "untimely" proposal to regulate participatory notes.

The party pointed fingers at Finance Minister P Chidambaram and asked him to explain why he waited for the markets to fall by nearly 1,800 points which led to investors losing over four lakh crore before coming up with a clarification.

The main opposition party insisted that some manipulators and market players benefited from the crash as it seems they knew before hand about the stock market plunge.

"We want to know why only an intent was expressed by SEBI without any policy measures at a time when the market was volatile. Why the finance minister was late in his clarification. We believe that only a JPC probe will find out the truth," BJP spokesman Prakash Javdekar said.

The "irresponsible" conduct of the government and "unwarranted" comments of SEBI has led to the crash and an investigation was necessary, he said.

"The announcement by SEBI and a late clarification by finance minister clearly exemplifies the complete mishandling by the government and its agencies," the spokesman said.

The extreme volatility in the capital market also points towards existence of a nexus between various persons and institutions, he said.

"BJP demands a JPC probe to investigate this nexus and mismanagement," Javdekar said.

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